ECON 251 Principles of Macroeconomics

ECON 251 Principles of Macroeconomics Spring 2015

Instructor: Daniel Fairchild Office: 403 OEC Phone: (651) 962-5676 Email Address: [email protected] Office Hours: 9:30 – 10:30 am MWF, or by appointment Classroom: 209 O’Shaughnessy Education Center Class Meets: 10:55 – Noon MWF (Section 03), February 2, 2015 – May 22, 2015. 12:15 - 1:20 pm MWF (Section 05), February 2, 2015- May 22, 2015.

Textbook: Principles of Macroeconomics by Lee Coppock & Dirk Mateer, 2014, W.W. Norton and Company, Inc.

Economic Report of the President- http://www.gpoaccess.gov/eop/download.html

Course Web Page: I have set up a web page for our course. This page is NOT on Blackboard. You should get in the habit of frequently checking out the course web page. You get to the course web page by going to my personal webpage at the link below. After going to my web page, click on the link for this course.

http://personal.stthomas.edu/drfairchild

Prerequisites: This is an introductory course in macroeconomics. No prior courses are necessary for a student to be enrolled. An understanding of basic high-school algebra and graphing is, however, essential.

Course Objectives: First and foremost, this course provides an introduction to the “economist’s way of thinking.” That is, the logical and systematic method of approaching macroeconomic problems and issues commonly used by economists. In addition, the course will provide you with the terminology and tools necessary to analyze important macroeconomic issues and understand how a nation’s economy works. Last, but not least, the course will develop a globally-integrated view of our nation’s economy which highlights the interdependency of national economic systems. To rephrase the above paragraph, we will study the nation's economy and its connections to the world economy. Regardless of the specific topic or issue we are addressing, my primary goals as your instructor are to help you:

 learn the principals, concepts and theories that are most fundamental to macroeconomics.  learn how to apply the material encountered in this course.  develop an ability to analyze and critically evaluate ideas, arguments and points of view on the topics addressed in the course. Grading and Assignments: There will be three hour-long exams in this course. There will also be a number of homework problems and several short quizzes in this class. Your final course grade will be determined by the following weights:

First examination 29% Second examination 29% Third examination 29% Short quizzes and homework assignments 13%

Important Class Policies

You are solely responsible for anything that transpires in class, whether or not you are in attendance. In addition, my methods of addressing some topics differ from those in the textbook. Therefore, you should use the textbook as a supplement to, but not a substitute for, what transpires in class. Reading the assigned chapters in the text prior to our class discussions is not mandatory, but is recommended.

Homework assignments must be handed in 4 pm on the assignment’s due date. I will not accept electronic submissions (all assignments must be submitted in paper form.) It is important to get your homework in on time. See the next section of the syllabus for more on homework assignments.

Makeup examinations will only be given in unusual circumstances, such as serious illness. Permission to take a makeup examination should not be assumed and must be obtained from me prior to the scheduled exam date. Makeup exams, while covering the same body of material as the regularly-scheduled exam, may not be the same format. It is important that you listen to my verbal elaboration on this policy and how I implement it. You will be treated to this elaboration on more than one occasion during the semester.

There will no makeup quizzes given for any reason.

There are no opportunities for extra credit in this course.

Grading of Homework Assignments

I will assign a number of homework assignments. Each homework must be handed in by a specific due date. Homework submitted by the due date will be registered in my grade book if and only if your assignment shows you attempted to complete the homework in a conscientious manner. Late homework and homework not reflecting conscientious effort will not be registered in my grade book. When I return an assignment I will make an answer key available to you. You are encouraged to work on the homework assignment with others, but you must hand in each of your own assignments individually. Course Outline WEEK OF CHAPTER

Feb. 2nd Five Big Ideas Ch. 1

Feb. 9th Model Building & Potential Gains from Trade Ch. 2

Feb. 16th Market supply and demand: Select Applications Ch. 3 Relevant to Macroeconomics

Feb. 23rd A Nation’s Economy in the Short and Long run. Ch. 6 Macroeconomic Measurements of Output.

Mar. 2nd Macroeconomic Measurements of Employment and Ch. 7 & 8 Inflation

FIRST EXAM

Mar. 9th Economic Growth and the Wealth of Nations Ch. 11

Mar. 16th Explaining Economic Growth Ch. 12

Mar. 23rd Aggregate Demand, Aggregate Supply and the Ch. 13 Economy in the Short Run

Mar. 30th MID TERM BREAK

Apr. 6th * The Great Depression and the Great Recession Ch. 14

Apr. 13th Fiscal Policy and the Economy Ch. 15, 16

SECOND EXAM

Apr. 20th Money, Banking and the Federal Reserve Ch. 17

Apr. 27th Monetary Policy and the Economy Ch. 18

May 4th International Trade, Trade Policy & the Economy Ch. 19

May 11th Exchange Rates and the Economy Ch. 20

THIRD EXAM

Section 03 10:30-12:30 Tuesday, May 19th Section 05 8:00- 10:00 Friday, May 22nd