EC101B: PRINCIPLES OF MACROECONOMICS
Fall 2017Dr. Sanjay Paul
Office: Hoover 206
Tel: 717-361-1543
Email:
Web:
Office hours
- Mon 1:00-3:00pm
- Tue 10:00-10:50am
- Wed 1:00-3:00pm
- Thu 10:00-10:50am
- And by appointment
Course description
The course analyzes the factors affecting output, employment and prices in the economy.We examine how output (gross domestic product, or GDP) is measured through national income accounting. We construct a model of aggregate demand and aggregate supply in an open economyin order to explain fluctuations in GDP and unemployment (i.e., business cycles), and changes in the price level (inflation).
What can the government do to raise employment or reduce inflation? Here, we analyze the role of fiscal and monetary policies. We discuss the appropriateness of cutting (or raising) taxes, reducing (or increasing) government spending, and raising (or lowering) interest rates.
We use the open-economy model to analyze the importance of international trade and capital flows, and to explore the relationship between interest rates and exchange rates.
Learning outcomes
In this course, students will be able to:
- Apply the aggregate demand-aggregate supply model to explain gross domestic product and inflation
- Discuss the effect of macroeconomic policies on various socio-economic groups
- Explain the role of central banks and governments in the formulation and conduct of monetary and fiscal policies
- Analyze the influence of government policies on spending by consumers and firms
- Describe the methods of building traditional macroeconomic models
Readings
The required readings for the course are:
- Krugman, Paul & Wells, Robin (2015). Principles of Macroeconomics (4th ed.). Worth Publishers. Access to LaunchPad is required (see details below).
- The Wall Street Journal (daily).
You are required to buy access to LaunchPad (the course management system) which includes the e-book. Instructions on how to buy access to LaunchPad are available at my course website (Do not buy elsewhere—you may not get access to the website!)
You should buy access to LaunchPadas early as possible, since we’ll be using it right from the beginning of the term—and you don’t want to fall behind in any assigned work.
If you wish to obtain a print copy, you may buy an older edition of the textbook from amazon.com or other sites at a relatively low price. But note that you must buy online access to LaunchPad for this course, as noted above.
Student rates for WSJ subscription are available at the course website Hereyou will also find materials that I have created for the course, including lecture outlines and exercise sets. You should pay very close attention to these.
Evaluation
Your grade will be based on your performance in exams, quizzesand assignments.
Test 1 / 25% / Thu, Sept. 14Test 2 / 25% / Thu, Oct. 26
Final exam / 30% / Tue, Dec. 12, 2:30pm
Quizzes / 10% / In-class; dates are NOT announced in advance; two lowest scores dropped
Assignments / 10% / On LaunchPad; frequent; all due at 11:59 pm; lowest score dropped
Exams: The exams may include multiple-choice questions, graphs, mathematical problems, and short-answer questions. They are cumulative and will be conducted in the classroom.
Quizzes: Quizzes will be brief, lasting around 10-15 minutes. They will be given in the classroom and without advance notice. In order to accommodate unforeseen absences, I will drop two of the lowest scores.
Assignments: Assignments will be assigned frequently. They will mainly rely on submissions through LaunchPad. To provide some flexibility, I will drop the lowest score.
Grading scale93-100 % / 90-92 / 87-89 / 83-86 / 80-82 / 77-79 / 73-76 / 70-72 / 67-69 / 63-66 / 60-62 / 0-59
A / A- / B+ / B / B- / C+ / C / C- / D+ / D / D- / F
Making up missed tests and quizzes
A test will be given again only under exceptional circumstances - e.g., very poor health. In all other cases, a missed test will result in a score of zero for the test. Missed quizzes and assignments will also result in a score of zero, except in cases of emergency.
Attendance
You are STRONGLY advised to attend all classes regularly. If you absent yourself from class, you are likely to do poorly on the tests, assignments and quizzes.
Academic integrity
Students are expected to adhere to the Pledge of Integrity at Elizabethtown College. In this course, you are expected to complete the assignments, tests and quizzes entirely on your own. You will not discuss the tests, quizzes or assignments with others, nor will you seek or receive assistance from others in completing them. Any breach of academic integrity will be dealt with in accordance with the policy stated in the College Catalog (see
Email communication
- Start emails with an appropriate salutation (Dear Dr. Paul, for example). End them with your name.
- Always provide a subject in the subject line. Include the course number (e.g, EC101) in the subject, so that I know right away it is from a student in the class.
- Use standard English, with proper spelling and grammar.
- Make sure your @etown.edu inbox is not full. If it is, my emails to you will not reach you, and you will be left in the dark. Do not be left in the dark!
General policies
Deadlines are extremely important. Submit assignments on time. Plan ahead. Don’t wait until the last minute to complete your task. Your Internet connection may go down; your computer may crash; the world may come to an end! In the interest of fairness to others in the class, I will not be able to accommodate late submissions.
There are no opportunities for extra credit.
Disabilities
Elizabethtown College welcomes otherwise qualified students with disabilities to participate in all of its courses, programs, services, and activities. If you have a documented disability and would like to request accommodations in order to access course material, activities, or requirements, please contact the Director of Disability Services, Lynne Davies,by phone (361-1227) or e-mail . If your documentation meets the college’s documentation guidelines, you will be given a letter from Disability Services for each of your professors. Students experiencing certain documented temporary conditions, such as post-concussive symptoms, may also qualify for temporary academic accommodations and adjustments. As early as possible in the semester, set up an appointment to meet with me, the instructor, to discuss the academic adjustments specified in your accommodations letter as they pertain to my class.
Religious Observances
The College is willing to accommodate individual religious beliefs and practices. It is your responsibility to meet with the class instructor in advance to request accommodation related to your religious observances that may conflict with this class, and to make appropriate plans to make up any missed work.
Class Cancellation
Classes may be occasionally cancelled for reasons pertaining to adverse weather conditions, health, travel and other emergencies. In such cases, I will make every effort to notify you as soon as possible and make suitable alternative arrangements.
SCHEDULE (tentative)
Week of Aug. 28 (week 1):
Introduction: The Ordinary Business of Life
Chapter 1: First Principles
Week of Sept. 4 (week 2):
Chapter 2. Economic Models: Trade-offs and Trade
Chapter 2 Appendix. Graphs in Economics
Week of Sept. 11 (week 3):
Chapter 3. Supply and Demand
Chapter 4. Price Controls and Quotas: Meddling with Markets
EXAM 1 on Thu, Sept. 14
Week of Sept. 18 (week 4):
Chapter 5. International Trade
Week of Sept. 25 (week 5):
Chapter 6. Macroeconomics: The Big Picture
Week of Oct. 2 (week 6):
Chapter 7. GDP and CPI: Tracking the Macroeconomy
Week of Oct. 9 (week 7):
Chapter 7. GDP and CPI: Tracking the Macroeconomy
Chapter 8. Unemployment and Inflation
Week of Oct. 16 (week 8):
Chapter 8. Unemployment and Inflation
Chapter 9. Long-Run Economic Growth
Week of Oct. 23 (week 9):
Chapter 10. Savings, Investment Spending, and the Financial System
TEST 2 on Thu, Oct. 26
Week of Oct. 30 (week 10):
Chapter 11. Income and Expenditure
Week of Nov. 6 (week 11):
Chapter 12. Aggregate Demand and Aggregate Supply
Week of Nov. 13 (week 12):
Chapter 13. Fiscal Policy
Chapter 13 Appendix: Taxes and the Multiplier
Week of Nov. 20 (week 13):
Chapter 14. Money, Banking, and the Federal Reserve System
Week of Nov. 27 (week 14):
Chapter 14. Money, Banking, and the Federal Reserve System
Chapter 15. Monetary Policy
Week of Dec. 4 (week 15):
Chapter 15. Monetary Policy
FINAL EXAM on Tue, Dec. 12, 2:30pm
Page 1 of 5