WILFRID LAURIER UNIVERSITY
Department of Economics
Economics 140OC - Introduction to Macroeconomics
Angela Trimarchi
Spring 2014
Course Objectives:
This course introduces you to the principles essential to understanding contemporary
macroeconomic issues. The course also gives you an introduction to the determination of national
income, unemployment and inflation, interest rates, the exchange rate and monetary and fiscal
policy.
Course Textbook and Study Guide
The textbook that will be used in this course is:
Principles of Macroeconomics. Mankiw N. Gregory, Thomson Nelson, Fifth Canadian Edition.
The study guide that will be used is:
Principles of Macroeconomics. Mankiw, Kneebone, McKenzie, Fortura, Thomson Nelson, Fifth
APLIA (Optional)
Course Textbook + Study Guide + APLIA Package - ISBN 9780176555221
Note: The fourth edition text and study guide can also be used for this course.
Companion Website:
http://www.hed.nelson.com/nelsonhed/search/results.do?keyfor=allsite&keyword_isbn=97801765
02423
EVALUATION:
Your final grade in the course will be calculated as follows:
Quizzes 5 @ 7% each
Discussion Posts 4 @ 1.25% each
APLIA Math Test (Optional)
APLIA Assignments
Final Examination
Total
35%
5%
2%
8%
50%
100%
Quiz 5 Option – Read Carefully
Traditionally Quiz 5 has had more content on it (one extra chapter) than quizzes 1-4. Therefore, if
you find that you did not do well on Quiz 5 (example a mark of less than 60%) which is due
July 28th, then email me on or before 4:00 p.m. on July 29th and let me know if you want the
weight of Quiz 5 transferred to the final. Note, if you pick this option, the final will be more heavily
weighted (57% instead of 50%). Therefore, think carefully about this decision and only use it if
your score is considerably low. Of course, if you get 60% or greater and still want to transfer the
weight of Quiz 5 to the final I will still allow it.
1
APLIA
If you purchase a new book, it will come packaged with Aplia access which requires a separate
registration process. Aplia is a valuable resource for practicing/understanding the concepts taught
in this course. There will be a math review test and 10 online graded assignments over the term
using Aplia. There will also be a practice assignment before each graded assignment.
The website to for APLIA is http://login.cengage.com
Note: If your final exam grade out of 10% exceeds your Aplia grade, your final exam will be worth
60% versus 50% of your final grade. Furthermore if you choose not to use Aplia your final exam
mark will be worth 60% of your final grade instead of 50%.
Because economics involves knowledge of basic math, you will be required to complete a math test
on the Aplia website. You must take the test on or before Friday January 17th at 11:00 p.m. No
extensions will be granted.
Missed APLIA Assignments
You are allowed to miss 2 (two) Aplia assignments without penalty. Therefore, only 8 out of 10
assignments will count towards your grade. If you complete all 10 assignments, I will take the
scores from your best 8 assignments. Due dates for Aplia assignments are on the Aplia website.
Please note: Aplia assignments must be completed on or before the due date and no extensions
will be granted.
Deadlines and Acceptance of Late Assignments
Please note that the quizzes are due on the dates specified in the Calendar Tool on MyLS. If you
do not complete a quiz by the due date, depending on the validity of the circumstances, the quiz
attempt can be reset. 2 marks will be deducted from the quiz score for a reset attempt.
Course Outline:
Lesson 1
Introduction
o Week 1 - Chapter 1: Ten Principles of Economics
o Week 2 - Chapter 2: Thinking Like an Economist (& Appendix)
o Week 2 - Chapter 3: Interdependence and the Gains from Trade
o Week 3 - Quiz 1
Comments:
Chapter 1:
Omit reading on the following concepts:
o page 12 - Property rights
o page 13 - Market Failure, externality, market power
o page 14 - Inflation
o page 15 - Business cycles
o These concepts will be discussed later in the course.
Chapter 2:
o page 25 - Figure 2.1 - Circular Flow Diagram – is slightly different than the
o Circular flow Diagram presented in the notes.
o The markets for goods and services and the markets for factors of production are switched
around.
o However, the same idea of the circular flow of an economy is relevant in both diagrams.
2
Lesson 2
Data
o
o
o
of Macroeconomics
Week 4 - Chapter 5: Measuring a Nation’s Income
Week 4 - Chapter 6: Measuring the Cost of Living
Week 5 - Quiz 2
Comments:
Chapter 5:
o Course Content: Read about the Fisher Volume Index in the notes for Chapter 5: Measuring
a Nation’s Income
o Complete the Practice Test found at the end of Chapter 5 notes
o Omit reading on the following concepts:
o Page 102 - FYI – “Other Measures of Income” - Net National Product (NNP) and Personal
Income
o Omit reading on real gdp versus nominal gdp pages 106-108
Lesson 3
Real Economy in the Long Run
o Week 6 - Chapter 7: Production and Growth
o Week 6 - Chapter 8: Saving and Investment and the Financial System
o Week 7 - Read also: Chapter 17 pp. 447-451 (optional)
“Should Governments Balance their Budgets?”
Note: The Content tab does not contain any notes for Chapter 17, but, as stated above,
reading for Chapter 17 is optional
o Week 7 - Quiz 3
Comments:
Chapter 7:
o Page 145 – FYI box “The Production Function” - don’t worry about reading constant returns
to scale
Chapter 8:
o Page 170 – don’t worry about the definition of a mutual fund
o Page 182 – don’t worry about the definitions of vicious circle and virtuous circle
Lesson 4
Unemployment and the Monetary System
o Week 8 - Chapter 9: Unemployment and Its Natural Rate
o Week 8 - Chapter 10: The Monetary System
o Week 9 - Read also: Chapter 15: pp. 367-372 “The Theory of Liquidity Preference”
o Week 9 - Quiz 4
Comments:
Chapter 9:
o Page 197 – the text mentions ‘discouraged searchers’ but in the course notes I talk about
‘discouraged workers’ – each of these concepts means the same thing.
3
Chapter 10:
o Page 225 – Figure 10.1 – “Two Measures of the Money Stock for the Canadian Economy” M1+ currency plus demand deposits was formerly called M1 in the 4th Edition
o Both M1 and M1+ mean the same thing
o Note: ‘money stock’ and ‘money supply’ mean the same thing
o Page 233 – Omit reading on ‘foreign exchange market operations’ and ‘sterilization’
Lesson 5
Inflation, Open Economy Macroeconomics, Short-Run Economic Fluctuations
o Week 10 - Chapter 11: Money Growth and Inflation
o Week 10 - Read also:
Chapter 17: pp. 444-447 “Should the Central Bank Aim for Zero Inflation?”
(optional)
o Week 10 - Chapter 12: Open Economy Macroeconomics: Basic Concepts
o Week 11 - Read also:
Chapter 10 p. 233 paragraph 2 – foreign exchange market operations
o Week 11 - Chapter 14: Aggregate Demand and Aggregate Supply
o Week 12 - Read also: Chapter 15: pp. 372-379 – “The Downward Slope of the AD Curve”
o Week 12 - Quiz 5
Comments
Chapter 11
o Page 258 – Omit reading on ‘Relative-Price Variability and the Misallocation of Resources”
o Page 259 – Table 11.1 “How Inflation Raises the Tax Burden on Saving” and paragraph 2 –
Omit reading on tax treatment of interest income
Chapter 12
o Pages 274-275 – Omit reading on “The Flow of Financial Resources: Net Capital Outflow”
o Pages 275-276 – Omit reading on “The Equality of Net Exports and Net Capital Outflow”
o Pages 277-278 – Omit reading on “Saving, Investment, and Their Relationship to the
International Flows”
Chapter 14:
o Page 332 – Omit reading on “The Price Level and Consumption: The Wealth Effect”
o Pages 343-344 – Omit reading on the sticky-price theory
o Page 344 – Omit reading on the misperceptions theory
Please note the following:
Plagiarism:
Wilfrid Laurier University uses software that can check for plagiarism. Students may be required to
submit their written work in electronic form and have it checked for plagiarism.
Accessible Learning:
Students with disabilities or special needs are advised to contact Laurier’s Accessible Learning
Centre for information regarding its services and resources. Students are encouraged to review
the Calendar for information regarding all services available on campus.
4