PRINCIPLES OF MACROECONOMICSCourse Outline andAug. 26 Last day for Drop/AddOct. 25 Changes through time, economic growth, productivity and wealth creation(as opposed to wealth re-distribution). Long-tern growth and theories ofgrowth. Savings or consumption, Ah, that is the question (present vs. future – instant vs. delayed gratification). [See: Scott Peck, The Road Less Traveled or People of the Lie]. Investment and capital; interest rates and GDP. The underpinnings of financial decisions. The nature and operation of labor markets; employment, unemployment, and wages. Myths and realities – Is it really the worst economy since the Great Depression? [For verification, go to: the U.S. Department of Labor, Bureau of Labor Statistics website: www.bls.gov. Look at the Unadjusted and adjusted unemployment rates for 1986 through 2004 – pay particular attention to 1993-1994; 1996 in comparison with 2002 through 2004] Money supply growth, inflation.PRINCIPLES OF MACROECONOMICSTerm: Fall 2005Course Number: ECO 2013-839Meeting Times Tuesday & Thursday @ 10:50-12:05 and Location: 042-1020.Course Description No prerequisites. This course cannot be used to satisfy upper-level and Prerequisites: requirements for a degree in business administration and/or economics.The course is intended to provide students with an introduction to the principles of income determination and national income accounting. The approach to the materials is both diagnostic and prescriptive. A primary focus of analysis is on the use of monetary and fiscal policy to accomplish the goals of full employment, economic growth and price stability. Instructor: L.A. WoodsOffice Hours: Tuesday and Thursday – 12:15 to 2:00; and by appointment.Phone: [904] 620-2641E-mail: [email protected] Texts: N. Gregory Mankiw. 2004. Principles of Macroeconomics, Third Edition. Mason, OH: Thomson/South-Western.Outside Readings: In addition to the assigned reading material in the text, each student is expected to read a total of ten (10) articles (not editorials or book reviews)from scholarly journals over the term. Time, Businessweek, Fortune, The Wall Street Journal, etc. are all popular periodicals and DO NOT qualify asscholarly journals. Several examples of scholarly journals are Harvard Business Review, Business Economics, Journal of Developing Areas, LandEconomics, Journal of Marketing. Some students may prefer to read the daily articles found on the Mises Institute website (www.mises.org) or Economic Insights found at the Dallas Federal Reserve Bank’s website (www.federalreserve.org). Each of the articles should be reviewed, summarized or outlined as a written report on 5" x 8" note-cards. These reports are to be turned in on a weekly basis, beginning the week of . Additional Each student is expected to be well informed on current economic issues --Requirements: both domestic and international -- by reading the Investor’s Business Daily (especially the Monday issues, which are sold on the newsstands onSaturday) or the Wall Street Journal; and by viewing Market Wrap on CNBC, Nightly Business Report (PBS), or Lou Dobbs on CNN on a daily basis.Course Outline and Schedule: August 23 Introduction/background/housekeepingAug. 25 - Introduction to economics and key issues: Sept. 27 What is economics? What are the tools that are used in economics?What are the critical elements of macroeconomics and of economic reasoning? Production possibilities, economic growth, benefits of specialization and exchange/trade. The role of markets, supply anddemand. Market equilibrium. Macroeconomic concepts. Overview of Gwartney and Stroup’s [What Everyone Should Know About Economics and Prosperity.1993. James Madison Institute] “Ten Key Elements of Economics”. Major definitions and relationships. Time – the measure of many things. National income accounts; inflation and techniques for adjustment. Mankiw, Chapters 1-4; 10-11. SKIM Chapter 5.Internet exercise with Chapter 10 – changes in real GDP: Go to: www.bea.govClick on: ‘GDP’Click on: ‘Interactive NIPA Tables’Click on: ‘Frequently requested NIPA Tables’Click on: “Table 1.1.6 – “Real GDP, chained dollars”Select your own time period, I chose 1970 to 2004Internet exercise with Chapter 10 – percent changes in real GDP (growth rates:Go to: www.bea.govClick on: ‘GDP’Click on: ‘Interactive NIPA Tables’Click on: ‘Frequently requested NIPA Tables’Click on: “Table 1.1.1 – “Percent Change from Preceding period, in real GDP”Select your own time period, I chose quarterly data, 1988to 2004Internet exercise with Chapter 11 – historic annual CPIGo to: www.bls.govOn the far left, under “Inflation and Consumer Spending,”click on: “Consumer Price Index”Click on: “Tables Created by BLS” [Bureau of Labor Statistics]Click on: “Table Containing History of the CPI, 1913 – Present”note – results by monthly, annual average, and percentchange Internet exercise with Chapter 11 – unemploymentGo to: www.bls.govOn the far right, under “Employment and Unemployment,”click on: “National Unemployment”On the far right box – “Latest Numbers”, click on:(dinosaur icon for “Unemployment Rate”) the data set goes back to 1975, but is pre-programmed for 1994 to 2004; select your own time period, I chose 1975 (January) to 2005 (July)Aug. 26 Last day for Drop/AddSept. 5 Labor Day – University HolidaySept. 12 First of the article reviews is due. One is due each week for the next 10 weeks.Sept. 20 FIRST QUIZ Sept. 22 - Preliminary issues and long-run fundamentals Oct. 25 Changes through time, economic growth, productivity and wealth creation (as opposed to wealth re-distribution). Long-tern growth and theories of growth. Savings or consumption, Ah, that is the question (present vs. future – instant vs. delayed gratification). [See: Scott Peck, The Road Less Traveled or People of the Lie]. Investment and capital; interest rates and GDP. The underpinnings of financial decisions. The nature and operation oflabor markets; employment, unemployment, and wages. Myths and realities– Is it really the worst economy since the Great Depression? [For verification, go to: the U.S. Department of Labor, Bureau of Labor Statistics website: www.bls.gov. Look at the Unadjusted and adjusted unemployment rates for 1986 through 2004 – pay particular attention to 1993-1994; 1996 in comparison with 2002 through 2004] Money supply growth, inflation.Mankiw,