COURSE DESCRIPTION:Economics 202Principles of MacroeconomicsFall 2007 8a.m. Instructor: D.W. HedrickOffice: Shaw-Smyser 424Telephone: 963-2426Office Hours: M and F 10:00-11:00 a.m. and T and TH 1:30- 3:00 and by appointment.Web Page: www.cwu.edu/~dhedrick/COURSE DESCRIPTION:This course provides an introduction to the organization of the U.S. economy, long-run economic growth and short-run economic fluctuation, the structure and role of the monetary system, the problems of unemployment and inflation, and the overall impact of government spending and taxation on the macroeconomy. COURSE OBJECTIVES: The principal objectives of the course are to provide students with an understanding of the macroeconomy. Students will become familiar with basic forces behind economic growth and short-run fluctuations in market economies and the basic techniques of modeling overall economic activity. They will develop an appreciation for the challenges economists and policymakers face in using monetary and fiscal policies to alter short-run economic performance and to create policies to help foster long-run economic growth. Students will also be introduced to the importance and the impacts of international trade and finance in modern market economies.TEXTBOOK: Required: (1) Mankiw, N. Gregory, Principles of Macroeconomics Economics, 4rd Edition, Thomson – SouthWestern, c2004, or Mankiw, N. Gregory, Principles of Macroeconomics, 3rd Edition, Thomson – SouthWestern, c2004(2) Aplia – An internet-based tutorial and homework problem that will be used for the required homework. Course Key: PF5F-3JYL-J47P (3) Hakes, David , Study Guide to Accompany Principles of Economics. Suggested Reading: The Wall Street Journal LEARNING OUTCOMES:1. Apply graphing skills to analyze macroeconomic models. These skills include an understanding of slope and its computation, curve shifts and movements along a curve, and the ability to draw inference from graphs.2. Utilize quantitative techniques in the analysis of macroeconomic models. These techniques include manipulating and solving simple linear systems of equations, and computing growth rates.3. Apply economic theory to contemporary macroeconomic policy issues.4. Identify, explain trends in, and explain the relationships between the following macroeconomic variables:- GDP (real and nominal)- Sources of economic growth (including capital accumulation, technological innovation, and productivity growth)- Inflation- Unemployment- Fiscal policy (including government spending, taxation, budget deficits, and national debt)- Monetary policy (including money supply, interest rates, and the structure of the U.S. banking system)- Consumption spending, saving, wealth, and investment- Exchange rates, exports, and importsCOURSE OUTLINE: Topic Text Chapter(s)I. Introduction to Macroeconomics and Brief Review Split Of MicroeconomicsCircular Flow 10Review of Micro 1-8II. The Data of MacroeconomicsNational Income 10Cost of Living 11III. The Real Economy: Long-Run AnalysisProduction and Growth 12Saving and Investment 13Basic Tools of Finance 14Unemployment and Its Natural Rate 15IV. Money and Prices: Long-Run The Monetary System 16Money Growth and Inflation 17V. The Macroeconomics of Open Economies Basic of Open-Market Macroeconomies 18Theory of Open Economies 19VI. Short-run Fluctuations Aggregate Demand and Supply 20Monetary and Fiscal Policy 21Inflation and Unemployment: Short-run 22VII. Controversy in Macroeconomic PolicyDebates about Macroeconomic Policy 23RECOMMENDED STUDY HABITS:Economics is a challenging subject for most and requires significant study to successfullymaster and apply economic concepts. I suggest that you read, or at least skim, the chapters in the text before they are covered in class. As soon after class as possible, I recommend you retire to a quiet place and reread the text and recopy the lecture notes. This will help reinforce what you have learned and point out areas that you need clarified.Feel free to ask questions in class. Remember, “There is no such thing as a dumb question.” Also, please make use of office hours, particularly when you need a bit more help understanding the material.ASSESSMENT AND EVALUATION:Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative analyses of contemporary macroeconomic policy issues, as well as an understanding of the variables listed in outcome #4.Grades will be based on twice-weekly online homework assignments, weekly quizzes, three mid-term examinations, and an optional comprehensive final examination. Important: No makeup quizzes will be given for any reason. Makeup midterms and finals will only be given for emergencies and require a note signed by a physician or a senior officer in Student Affairs.Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative analyses of contemporary macroeconomic policy issues, as well as an understanding of the variables listed in outcome #4.Each week online homework sets will be assigned using the innovative online service provided by Aplia. Using the following Course Key: PF5F-3JYL-J47P, students will subscribe and setup and individual Aplia account (http://www.aplia.com). The textbook bundle from the bookstore includes an Aplia access code and no payment is required. If not, they will need to make their payment directly to Aplia.The initial Aplia assignments include tutorials on mathematics and graphs. They begin begins with a pretest and ends with a posttest. Prior to subsequent assignments, students will have the opportunity to take a practice assignment (not graded). The Aplia program is self-contained and includes 24 hour online and toll-free telephone support. Students who do not have computers at home or a high-speed internet connection are encouraged to use the CWU computer labs. The schedule for the computer labs can be viewed at http://www.cwu.edu/~labstats/AllLabHrs.html. The lowest 4 homework assignments willbe dropped and the remaining homework assignments will count for 100 points.A total of seven weekly quizzes will be given on Friday, excluding the weeks of midterms, the first week of class, and during Thanksgiving Holiday (quiz on Wednesday Nov. 21). Each quiz will count for 20 points and the lowest two quizzes will be dropped. The total points from quizzes will be 100 points.Three midterm