Economics
1A:
Introduction to
Macroeconomic Analysis
California
State University, Sacramento
Department of Economics
College of Social Sciences and Interdisciplinary Studies
Spring 2005
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Economics is a discipline that will impact the way you make decisions and the way you view the world. Macroeconomics is the study of the nation’s economy as a whole. This course will focus on the factors that influence economic growth, unemployment, and inflation. We will analyze the impact of fiscal and monetary policy on economic expansions and recessions.
ECON 001A. Introduction to Macroeconomic Analysis. Introductory inquiry into the workings and interrelationships of the aggregate economic system. The primary focus is on total production and its distribution, employment and price levels, and the forces influencing them. Other considerations are the roles of government, the monetary sector, and related areas. 3 units.
· To gain a firm grasp of economic concepts and to understand how they can apply to decision making, your understanding of current events, and to your own life.
· To develop a critical and systematic method of understanding how unemployment, inflation, gross domestic product, the budget deficit, and economic growth are interrelated.
· To recognize the impact of fiscal and monetary policy on the economy.
· To use economic tools to understand current social issues, such as poverty, inequality, and government regulation, and to understand the contributions to the field by women and men and all ethnic groups.
You
are expected to come to class prepared to participate in class
discussions. Completion of required readings prior to class meetings is
crucial to your understanding of the material, and necessary for your
contribution to the learning environment.
Attendance is also essential for success in this course.
The material highlighted in lecture will be most important for
doing well on exams and problem sets.
Out of
courtesy for your instructor and your classmates, arrive to class on
time. Turn off pagers and
cell phones during class.
All students are expected to adhere to the University Student Code of Conduct outlined in the CSUS University Policy Manual. If you have questions regarding plagiarism and the appropriate way to give credit to sources in any work you submit, review the Policy Manual or confer with the instructor. Academic dishonesty is not tolerated, will be reported to Judicial Affairs, and will result in a failing grade. Please read the policy manual carefully at: http://www.csus.edu/admbus/umanual/UMA00150.htm
You must also be aware of current events, preferably through reading the Wall Street Journal, the New York Times www.nytimes.com, or the Washington Post www.washingtonpost.com. If you would like to subscribe to the Wall Street Journal at a student rate, contact me by the end of the first week of class.
ECON 001A. Introduction to Macroeconomic Analysis. Introductory inquiry into the workings and interrelationships of the aggregate economic system. The primary focus is on total production and its distribution, employment and price levels, and the forces influencing them. Other considerations are the roles of government, the monetary sector, and related areas. 3 units.
Your grade for the course will be based on exercises and participation (20%), problem sets (20%), two midterms (20% each), and a final exam (20%).
Problem sets and exercises will be administered through WebCT. You will need to have a Saclink account to access WebCT.
To access WebCT, go to https://online.csus.edu/ and “Login to my WebCT.”
To create a Saclink account, go to http://www.csus.edu/saclink/.
Class Participation and Exercises (20%): I encourage you to participate in class discussion and ask questions if topics are unclear. One of the best ways to solidify your understanding of economic concepts is through trying to explain those concepts to others. You will have this opportunity through class discussion, exercises, and problem sets. I encourage you to work together on exercises, but I expect you to turn in original work that is in your own words. Exercises are short questions that are introduced at the end of a class, and due before the beginning of the following class. They will be distributed and graded through WebCT. These exercises will reinforce the material covered in class that day, and will be graded for full credit if any reasonable answer is turned in on time. Some exercises will require a short paragraph explaining a topic covered in class.
exercises must be submitted by 10 A.M.
Late exercises will not be accepted.
Problem Sets (20%): Problem sets will be given throughout the semester as another method of reinforcing your understanding of the material. They will be distributed and graded through WebCT. You will have more than a week to complete each problem set.
Problem sets must be submitted by 10 A.m.
Late problem sets will not be accepted.
Midterms (20% each): Two midterms will be given. You may not use your book or your notes on the midterms. Midterms will have multiple-choice questions and a short answer essay.
Final Exam (20%): The final exam will be cumulative with an emphasis on the final third of the course. You may not use your book or your notes on the final. The final exam will have multiple-choice questions and a short answer essay.
Make-up Exam Policy: Exams must be taken at the scheduled times. A student who misses an exam due to a serious medical or job-related emergency must inform me and provide documentation as soon as possible, no later than the end of the following class meeting.
Reading assignments are from the text Macroeconomics Principles and Tools (3rd Edition) by Arthur O'Sullivan and Steven M. Sheffrin. The second edition is fine, and you may be able to find it at a reasonable price. The text book also provides chapter by chapter content that is available on WebCT. A free study guide with sample multiple choice questions is available at: http://myphlip1.pearsoncmg.com/cw/. The textbook is not ‘required’ but you are responsible for material covered in the textbook. The majority of this material is also available under ‘Chapter List’ / ‘Lecture Contents’ on WebCT. Take a look at the material available there. If you feel confident in your ability to read the material online, and feel that you do not need the text book, it is your choice to forego buying the text.
| Tuesday, January 25 | Introduction, Economic Modeling, Production Possibilities |
| Read Chapter 1 and Graphing Appendix. | |
| Thursday, January 27 | Introduction to Five Principles of Economics |
| Read Chapter 2 | |
| Tuesday, February 1 | The Market Economy |
| Read Chapter 3 | |
| Thursday, February 3 | Supply and Demand Part 1 |
| Problem Set 1 Due | Read Chapter 4 |
| Tuesday, February 8 | Supply and Demand Part 2 |
| Read Chapter 4 | |
| Thursday, February 10 | Measuring GDP |
| Read Chapter 5 | |
| Tuesday, February 15 | Unemployment and Inflation |
| Problem Set 2 Due | Read Chapter 6 |
| Thursday, February 17 | Review |
| Tuesday, February 22 | Midterm 1 |
| Thursday, February 24 | Classical Economics |
| Read Chapter 7 | |
| Tuesday, March 1 | Economic Growth |
| Read Chapter 8 | |
| Thursday, March 3 | Aggregate Demand and Aggregate Supply |
| Read Chapter 9 | |
| Tuesday, March 8 | Keynesian Economics |
| Problem Set 3 Due | Read Chapter 10 and Appendix |
| Thursday, March 10 | Keynesian Economics |
| Read Chapter 10 and Appendix | |
| Tuesday, March 15 | Investment |
| Read Chapter 11 | |
| Thursday, March 17 | Money and the Federal Reserve |
| Problem Set 4 Due | Read Chapter 12 |
| **** SPRING BREAK**** | |
| Tuesday, March 29 | Review |
| Thursday, March 31 | Midterm 2 |
| Tuesday, April 5 | Monetary Policy—Short Run |
| Read Chapter 13 | |
| Thursday, April 7 | Monetary Policy |
| Read Chapter 13 | |
| Tuesday, April 12 | Short run and long run policy |
| Read Chapter 14 | |
| Thursday, April 14 | Dynamics of Inflation and Unemployment |
| Read Chapter 15 | |
| Tuesday, April 19 | Macroeconomic Policy Issues |
| Read Chapter 16 | |
| Thursday, April 21 | Macroeconomic Policy Issues |
| Problem Set 5 Due | Read Chapter 16 |
| Tuesday, April 26 | Commanding Heights Video |
| Thursday, April 28 | Thanksgiving—No Class |
| Tuesday, May 3 | International Trade |
| Read Chapter 17 | |
| Thursday, May 5 | International Trade |
| Read Chapter 17 | |
| Tuesday, May 10 | Exchange Rates |
| Problem Set 6 Due | Read Chapter 18 |
| Thursday, May 12 | Review |
Required: The text for the course this semester is Macroeconomics Principles and Tools (3rd Edition) by Arthur O'Sullivan and Steven M. Sheffrin. The supplemental website for the text is: http://myphlip1.pearsoncmg.com/cw/.
You can purchase books through the Hornet Bookstore. Check their Distance and Distributed Learning page at http://www.bookstore.csus.edu/bookstore/distance/ for ordering information.