ECNS 202-01 Principles of Macroeconomics Fall 2017 Course Packet Dr. Gilpin Course Schedule Pre-lecture Homework Homework Week Date Topic Reading Quiz Guide Date Due Date 1 Aug 29 Syllabus & Lecture 1 HW A & B 1 31 Lecture 1 con. & Lecture 2 PL 1 HW 1 Ch. 2 2 Sep 5 Lecture 2 con. PL 2 HW 2 2 7 Lecture 3 PL 3 Ch. 3 3 12 Lecture 3 con. & Lecture 4 PL 4 HW 3 Ch. 4 3 14 Lecture 4 con. HW 4 4 19 Lecture 5 PL 5 Ch. 5 4 21 Lecture 5 con. & Lecture 6 PL 6 HW 5 Ch. 7 5 26 Lecture 6 con. 5 28 Lecture 6 con. & Lecture 7 PL 7 HW 6 Ch. 6 6 Oct 3 Lecture 7 con. HW 7 6 5 Catch-up / review 7 10 Exam I: Lectures 1-7 HW A, B, 1–7, Sample Exams I: A-C 7 12 Lecture 8 PL 8 HW 8 Ch. 10 8 17 Lecture 9 PL 9 Ch. 8 8 19 Lecture 9 con. HW 9 9 24 Lecture 10 PL 10 Ch. 11 9 26 Lecture 10 con. HW 10 10 31 Lecture 11 PL 11 Ch. 12 10 Nov 2 Lecture 11 con. / review HW 11 11 7 No class – election day 11 9 Exam II: Lectures 8-11 HW 8 – 11, Sample Exams II: A-C 12 14 Lecture 12 PL 12 HW 12 Ch. 13 12 16 Lecture 12 con. & 13 PL 13 Ch. 14 13 21 Lecture 13 con. HW 13 13 23 No class – thanksgiving 14 28 Lecture 14 PL 14 Ch. 15 14 30 Lecture 14 con. HW 14 15 Dec 5 Lecture 15 PL 15 Ch. 16 15 7 Lecture 15 con. HW 15 16 15 Final Exam: Lectures 1-15 / 12:00-1:50 pm HW 12 – 15, Sample Exams III: A-C Montana State University – Depart. of Ag. Econ. & Econ. ECNS 202 Principles of Macroeconomics Table of Contents ______________________________________________________________________________ Syllabus ............................................................................................................................................ i Lecture 1: Introduction to Macroeconomics (NO CORRESPONDENCE WITH CHAPTER 1) ...1 Lecture 2: Resource Allocation and Opportunity Cost ..................................................................19 Lecture 3: Specialization and Gains from Trade ...........................................................................31 Lecture 4: Supply and Demand......................................................................................................41 Lecture 5: Measuring a Nation’s Income .......................................................................................59 Lecture 6: Production and Growth (Chapter 7) .............................................................................75 Lecture 7: Measuring the Cost of Living (Chapter 6) ....................................................................99 Lecture 8: Unemployment (Chapter 10) ......................................................................................113 Lecture 9: The Financial Structure and the Loanable Funds Theory (Chapter 8) .......................127 Lecture 10: The Monetary System (Chapter 11) .........................................................................143 Lecture 11: Money Growth and Inflation (Chapter 12) ...............................................................161 Lecture 12: Open-Economy Macroeconomics: Basic Concepts (Chapter 13) ............................171 Lecture 13: A Macroeconomic Theory of the Open Economy (Chapter 14) ..............................185 Lecture 14: Aggregate Demand - Aggregate Supply (Chapter 15) .............................................199 Lecture 15: Policy Analysis (Chapter 16) ....................................................................................217 Exam I Information (Lectures 1 – 7) ...........................................................................................231 Exam II Information (Lectures 8 – 11) ........................................................................................233 Final Exam Information (Lectures 1 – 15) ..................................................................................235 Equation sheet ................................................................................................................. back page ______________________________________________________________________________ All lectures correspond to the chapters in the textbook except where noted above. This page is intentionally left blank ECNS 202-01 Principles of Macroeconomics (3 credits) CRN Number 22000, Fall 2017 Montana State University – Depart. of Ag. Econ. & Econ. Instructor: Dr. Gilpin Office: 307A Linfield Hall Email: [email protected] Phone: 994-5628 Office Hours: M/W: 9–10 am, T/R: 1:30-2:30 pm Class Website: d2l Course Description Macroeconomics studies the performance of the economy as a whole in the short- and long-run. The five pillars of modern macroeconomics that will be introduced are: 1. Output: the production of goods and services. 2. Prices: the cost of purchasing inputs and outputs over time. 3. Employment: the utilization of economies’ key resource. 4. Finance: how credit markets create economic efficiency and improved wellbeing. 5. Government policy: how government policies effect the economy. Student Learning Objectives Upon completion of this course, students should be able to: • Compute measures of macroeconomic activity, such as the national income accounts, inflation, and unemployment, and evaluate the shortcomings of traditional economic measures. • Describe the contemporary banking and monetary system and be able to assess current monetary policy of the Federal Reserve System. • Identify and analyze factors that affect economic growth. • Analyze the influences on the aggregate economic activity and the business cycle. Prerequisite The prerequisite for this course is a passing grade in ECNS 101 (or equivalent). Students requiring an exemption from this policy will need to file their petition with the DAEE certification officer, who evaluates the petition in conjunction with the DAEE Resident Instruction Committee. Required Materials Course packet: ECNS 202 Principle of Macroeconomics Course Packet In-class response device: iClicker (Original or V2) or iClicker REEF app on smart device. Calculator / colored pencils or pens / straight edge Recommended Material Textbook: N. Gregory Mankiw, Brief Principles of Macroeconomics 6th edition: ISBN: 13: 9780538453073 7th edition: ISBN: 13: 9781285165929 Study Guide: Brief Principles of Macroeconomics, 6th edition. ISBN: 9780538477062. i Teaching Method The class is comprised of pre-lecture videos and assessment, lecturing, question & answer, open discussion, and post-lecture homework. I encourage student participation as it is effective in solidifying concepts. If you have any questions, please ask in class, or during office hours. Reading the textbook chapters before we cover them in class will help you to better understand the lectures and improve your ability to participate in discussions. Accordingly, you should come to class having read the assigned chapter, watched the pre-lecture videos, and checkpoint assessments, and be prepared to discuss and answer questions. Homework The homework assignments will be posted on d2l. Using a web browser, log onto d2l and complete the homework at your own pace. Homework assignments have equal weight when calculating the final grade. To account for any individual unanticipated occurrences, the lowest two homework scores will be automatically dropped. Each homework has three attempts. Homework guide dates are suggestions of when you should do your homework. Missing a homework guide date will not affect your homework score. There are three homework due dates. After each due date, previous homework may not be submitted. Homework A, B, 1-7, and Sample Exams I: A-C are due date at the beginning of Exam I. Homework 8-11, and Sample Exams II: A-C are due date at the beginning of Exam II. Homework 12-15, and Sample Exams III: A-C are due date at the beginning of the final exam. Pre-lecture Quizzes The pre-lecture quizzes will be posted on d2l. Using a web browser, log onto d2l and complete the quiz at your own pace. Quizzes have equal weight when calculating the final grade. To account for any individual unanticipated occurrences, the lowest two quiz scores will be automatically dropped. Quizzes are always due at the beginning of class on the date specified on the course schedule and on d2l. After the due date, quizzes may not be submitted. Each quiz has two attempts. In-class Responses I will illicit feedback from students during class through the iClicker student response system. Students are required to register their i-Clicker: https://www1.iclicker.com/register-clicker/ and to test that the clicker is on frequency AA at the start of each class. If students use the i-clicker ‘REEF’ polling app on their smartphone, tablet, or laptop, then they must register this device at https://app.reef-education.com/#/login. Enter your information exactly as provide to the university on MyInfo. Students receive points for inputting a response (participation grade) of 50 points as well as a performance-based grade of 50 points based on the accuracy of students’ answers. Questions asked in class will be either a poll, where students are asked for their evaluation and will receive credit for participating, or an accuracy question, where students are asked for their objective evaluation and will receive credit for both participating and accuracy. To account for any individual unanticipated occurrences, the lowest two in-class response score days will be automatically dropped when final grades are computed. ii Exams There are two midterm exams and a comprehensive final exam. As specified by Student Code 310.D of the MSU Student Conduct Code, students must take exams when scheduled. If an unavoidable scheduling conflict arises, students should