ECON 2301

Principles of Macroeconomics

Dr. A. J. Slivinske, Jr.

Class Hours    M & W            12-1:15; 1:25-2:40

                        T & Th                        10:35-11:50; 12-1:15

Office Hours   M & W 8-12

                        T & Th 8-10:30, and by appt.

Office #           2128

Phone              223-4765

Email               alslivin@austincc.edu

Course Description:  Principles of Macroeconomics deals with consumers as a whole, producers as a whole, the effects of government spending and taxation policies and the effects of the monetary policy carried out by the Federal Reserve Bank.  Macroeconomics is concerned with unemployment, inflation, and the business cycle.

Text:    The Macro Economy Today (10^th), Bradley R. Schiller

Instructional Methodology: The test material is presented in class using lectures, texts, and handouts. 

Course Rationale: This course is meant to give students insight into the dynamics of our national economy. The knowledge gained in the course will make students better informed citizens and allow them to follow the debates over national economic policy reported in the news media. This course is also a foundation course that will prepare students to be successful in upper division finance, marketing, business administration, economics, government, and social work courses.

Common Course Objectives/ Student Outcomes (established by the economics department):  Students who complete this course will be able to understand:

• the meaning of unemployment and inflation data and how that data is collected and computed;
• the meaning and components of the National Income Accounts, especially GDP;
• the meaning of the business cycle and its phases;
• and to manipulate the basic Aggregate Supply, Aggregate Demand model of the macro economy;
• how fiscal policy operates, its tools, and its advantages and drawbacks;
• how a fractional reserve banking system works;
• how monetary policy operates, its tools, and its advantages and drawbacks.

Objectives/Outcomes (established by the instructor): See Review Questions

Grading System: Course evaluation will be based on two exams, with 16 points on each test derived from the text:

Exam I covering the first half of the course (116 point multiple choice, 29 questions).

Exam II covering (mostly) the second half (same format).

Final course grade:

            A         90 or better average

            B         80–89 average

            C         65-79 average

            D         50-64 average

            F          < 50

Course Policies: Attendance is expected, and roll will be taken each day.  You are expected to withdraw if you cannot keep up with the material (although I reserve the right to withdraw the student for failure to show progress etc).  Since I will provide the entire course curriculum, you will not perform well if you miss class.  Make-up exams are given, only with prior approval by notification of the professor before the exam date.  Any material missed due to absences is the student’s responsibility to make up.

Material presented in class is either:

            1.         important and on the tests (see review questions)

            2.         important and not on the test but is something college students

                        should know.

Scholastic Dishonesty:  Acts prohibited by the college for which discipline may be administered include scholastic dishonesty, including but not limited to cheating on an exam or quiz, plagiarizing, and unauthorized collaboration with another in preparing outside work. Academic work submitted by students shall be the result of their thought, research or self-expression. Academic work is defined as, but not limited to tests, quizzes, whether taken electronically or on paper; projects, either individual or group; classroom presentations, and homework.

Students with Disabilities :  Each ACC campus offers support services for students with documented physical or psychological disabilities.  Students with disabilities must request reasonable accommodations through the Office for Students with Disabilities on the campus where they expect to take the majority of their classes. Students are encouraged to do this three weeks before the start of the semester.

Course Outline/Exam Dates:

            I           Introduction (text ch 1)

                        A         Course requirements and Objectives

                        B         Basic core topics

                        C         Production Theory

            II         Market Analysis (text ch 3)

                        A         Demand Theory

                        B         Supply Theory

                        C         Market Equilibrium/Disequalibrium

                        D         Market and Events (applications)

            III        Adam Smith and Classical Economics (handouts)

                        A         Perfect Competition

                        B         Economic Growth

                        C         Economics History

            IV        Economics Growth and Population (handouts)

                        A         Malthusian Model

                        B         Demographic Model

Exam I             Midsemester (approximately 15^th class meeting)

            V         National Income Accounts (text chs 2,4,5)

                        A         Model: Y = C + I + G + X-M

                        B         GDP = GDI

                        C         Types of C, I, G, X, M

                        D         Yd = disposible income = C + S

            VI        Basic Keynesian System and AS/AD (text chs 8,9,10)

                        A         C = f(Yd); C = Co + MPC(Yd); MPC = dC/dYd

                        B         Autonomous I,G,T,X,M

                        C         Mulitplier Analysis

            VII      Fiscal Policy (text chs 11&12)

                        A         Macro Goals

                        B         Business Cycles

                        C         Types of policies

                        D         Tools of Policy

VIII     Money and Theory (text chs 13&15)

            A         Ms

            B         Md

            C         Financial Markets

            D         MV = PQ and variations

IX        Commercial Banks (text ch 13)

            A         Money Creation

            B         Fractional Reserve Banking

            C         Money Multipliers

            D         Asset/Liability Sheets

X         Monetary Policy and the Federal Reserve (text chs 14&15)

            A         Types of Policy

            B         Tools of Policy

            C         Legal Goals

            D         Phillips Curve

XI        AS and AD and Reality (text chs 8,16,19 )

            A         AD

            B         AS

            C         Fiscal and Monetary Policy

            D         Inflation, Stagflation, and Supply-Side Economics

Exam II           (last class day)

Study Tips for Improving Your Grade:

                        1.         Write out answers to Review Questions

                        2.         Study groups

                        3.         Study each week, rather than cram at the end

                        4.         Highlight notes, and reduce to cards important concepts

                        5.         Review previous days class note before the next class

                        6.         Copies of old tests in Library, use as practice tests