Keene State College s1

Keene State College

Economics 201-3: Macroeconomics Fall Semester 2005 Tues & Thurs 11:00 a.m. – 12:20 p.m. Science 101

Instructor: Patrick Dolenc Office: Rhodes 260 Phone: 358-2629 E-Mail: [email protected] Office Hrs: Mon: 1:00-2:00 p.m.; Tues & Thurs: 10:00-11:00 am; or by appointment Texts: Schiller, The Macro Economy Today, 10th edition (2006) Krugman & Wells, Macroeconomics, Uncorrected Version, (2006)

** Note: Schiller has not changed significantly in many editions. If you use an earlier edition, please see me to construct the reading list. **

Website: http://keene.blackboard.com

Course Description & Objectives: This course provides an introductory survey of the tools, topics, theories and policy options of macroeconomics. By semester’s end you should be familiar with macroeconomic terminology, understand several macroeconomic models and their implications, and have developed analytical and quantitative skills (including the use of graphs) to explain and evaluate economic theories and events.

Course Requirements and Course Grades:

Quizzes 20% Writing assignment 5% Two midterm exams (25% each) 50% Comprehensive Final Exam 25% 100%

Course grades rely on the following scale:

93% & above: A 88% to 92%: AB 83% to 87%: B 78% to 82%: BC 73% to 77%: C 68% to 72%: CD 60% to 67%: D

Adjustments to this scale must be to your advantage. Quizzes: Unannounced quizzes cover reading assignments (complete assigned reading prior to the day it is scheduled to be discussed in class), material from lectures, and in- class problem solving or model manipulation. Quizzes are open notes (your own), but not open book. Expect to drop at least one quiz score since I do not excuse missed quizzes.

Writing Assignment: Each member of the class is expected to complete a writing assignment contrasting a specific section of assigned reading from the two texts. Guidelines for this assignment will be provided as the semester progresses.

Exams: Exams consist of short answer and problem solving and draw from both assigned reading and material covered in class. Short answer questions focus on various combinations of three themes as they relate to course content: (1) explaining concepts, (2) applying concepts concretely, and (3) evaluating the importance of a concept. The problem-solving component of each exam will be similar to problems we’ve worked with in class. Study guides with more detailed guidelines will be distributed prior to each exam. The final exam is comprehensive.

Attendance: It’s your responsibility to attend each class session or to find out what you have missed. The assigned reading is not an effective substitute for attending class. If you miss a class session, get the notes from a classmate. I will clarify questions about the notes if you first find out what you have missed. Make sure you understand the College policy on excessive absences (page 163 of the 2005-06 catalog). You cannot pass this course if you miss more than six classes for whatever reason.

Makeup Policy: Makeup opportunities for missed work are only available for circumstances beyond your control where you have notified me as soon as is reasonably possible. Makeup quizzes will not be given, however I will adjust your grade if you must miss class for a court appearance, funeral or hospitalization. To be eligible for a makeup exam you must contact me prior to the exam and provide me with evidence of circumstances beyond your control. If you are eligible to take a makeup exam, plan to complete it within one week of the regularly scheduled exam to avoid a late penalty.

Classroom Behavior: Treat all members of this class as well as opposing viewpoints with respect. If you come in late or must leave early, do so in the least disruptive manner possible. Turn your cell phone off or to a silent mode before each class session. If you fail to respect these guidelines you may be required to withdraw from the course.

This class strictly follows the College Policy on Academic Honesty. Therefore “…any work presented as a student’s own, must, indeed, be that student’s work, created by that student without unacknowledged aid or sources.” All exams and quizzes must be taken without assistance (other than the "open notes" provision for quizzes). Violation of this policy will result in failure for the particular exam or quiz and notification of the Dean’s office. More serious or repeat offenses will result in failure for the course. For a detailed discussion of the College Policy, refer to the Keene State College Student Handbook.

* * If you have questions on these or other matters, please do not hesitate to ask. * * COURSE OUTLINE

Complete each reading assignment prior to its scheduled class session.

(Aug 30) Course Introduction

(Sept 1) Introduction to Economics Reading: Schiller pp. 1-6 & K/W pp. 1-10 Optional: Schiller Ch 1 appendix & K/W Ch 2 appendix

(Sept 6) Our First Model Reading: Schiller pp. 6-12 & K/W pp. 20-33

(Sept 8) Demand Reading: Schiller pp. 44-55 & K/W pp. 56-63

(Sept 13) Supply & Applications Reading: Schiller pp. 55-63 & K/W pp. 63-78

(Sept 15) Market Failures Reading: Schiller pp. 63-67, 70-78 & K/W pp. 83-94

(Sept 20) To be announced

(Sept 22) To be announced

(Sept 27) Evaluating Efficiency Reading: K/W chapter 5

(Sept 29) The Circular Flow Model Reading: Schiller chapter 2

(Oct 4) National Income Accounting Reading: Schiller pp. 94-104 & K/W pp. 159-172

(Oct 6) Exam #1

(Oct 11) Theories of the Business Cycle Reading: Schiller pp. 154-161 & K/W pp. 138-149

(Oct 13) Unemployment Reading: Schiller chapter 6 & K/W pp. 173-176

(Oct 18) Inflation Reading: Schiller chapter 7 & K/W pp. 176-181 (Oct 20) Introduction to Keynesian Economics Reading: Schiller pp. 161-172

(Oct 25) Modeling Macroeconomic Instability Reading: Schiller pp. 178-190

(Oct 27) Extending the Keynesian Model Reading: Schiller pp. 190-198

(Nov 1) Working with the Keynesian Cross Model Reading: Schiller chapter 10

(Nov 3) Wolves, Pussycats, & Termites Reading: Schiller chapter 12 & K/W pp. 210-221

(Nov 8) Economic Growth Reading: Schiller chapter 17 & K/W chapter 8

(Nov 10) Exam #2

(Nov 15) Introduction to Money Reading:

(Nov 17) Fractional Reserve Banking Reading:

(Nov 22) The Money Multiplier Reading:

(Nov 24) ** Thanksgiving Break **

(Nov 29) A Brief History of International Monetary Systems Reading: handout

(Dec 1) The Federal Reserve Reading: Schiller chapter 14

(Dec 6) Monetary Policy Reading: Schiller chapter 15

(Dec 8) The Phillips Curve Reading: Schiller chapter 16

Comprehensive Final Exam: Tuesday, Dec. 13th 10:30 a.m. – 12:30 p.m.