Villanova University
School of Business
Introduction to Macroeconomics
ECO-1002-017
Spring 2012
Mary Kelly, Ph.D.
Class Meetings:
T/TH 2:30PM to 3:45PM
How to contact me:
Office: Bartley 2016
Office phone: 9-6445
Office Hours: T/TH from 11:30AM to 1:00PM or by appointment
Email: mary.kelly@villanova.edu
Course Description:
This course is an introduction to the study of how economic forces and policies affect the
working of the economy as a whole. Topics addressed include the determination of national
income and output, unemployment and inflation, monetary and fiscal policies, and international
trade and policies.
Course Objective:
At the conclusion of this course, students should be able to evaluate and discuss macroeconomic
issues and the consequences of various policy actions.
Required Textbook:
Macroeconomics by R. Glenn Hubbard and Anthony Patrick O’Brien, 3rd
edition
Other readings:
Selected chapters from the Economic Report of the President – Available
online at www.gpoaccess.gov/eop/index.html.
Articles pertaining to macroeconomic issues from the Wall Street Journal
The Wall Street Journal is available for free throughout Bartley Hall.
Articles from quarterly/monthly journals published by regional Federal
Reserve Banks. These articles will be distributed via email or in class.
The Economic Calendar on www.bloomberg.com/markets/economiccalendar/ provides access to up-to-date releases of U.S. macro data.
You should be prepared for class. This includes reading the chapter and any corresponding
material from assigned readings prior to coming to class.
Grading:
Requirements
Exams
I (Chapters 2, 3, 6, and 7)
II (Chapters 8 through 11)
III (Chapters 12 through 15)
FINAL (Chapters 7 through 16,
Discussions of macro
measurements and
international econ comparisons)
Macro Measurements Assignment
International Presentations
Total Points
Grade = Total Points/2
Begins at
94
90
87
84
80
77
Grade
A
AB+
B
BC+
Begins at
74
70
67
64
60
Below 60
Points Due Date(s)
30
40
40
50
20
20
200
February 14
March 20
April 12
May 7 from 11:30AM to 2:00PM
April 26
May 3
100
Grade
C
CD+
D
DF
Grading is determined based on the
specified criteria. There is NO
INDIVIDUALIZED EXTRA CREDIT
offered in this course.* Rounding up or
down is based on class participation.
*ExCr offered to entire class: EconNova
Blog and attendance at presentations by
external speakers.
Exams:
There are four exams during the term, including a semi-cumulative final. Exams must be taken
on the scheduled dates. Make-up exams will be offered only for extenuating circumstances and
must be taken within two days of the scheduled exam date.*
*A 5 to 10 point penalty may be assessed if the exam is not taken when scheduled.
Macro Measurements Assignment:
Each student will collect and analyze data for the U.S. economy. For each variable (shown
below), prepare a table and graph and comment on what you observe. The table and graph
should be integrated into a five-page Microsoft Word document that accompanies the
commentary about the data.
Page
1
2
3
4&5
Macro Variable
Frequency and Time
Period
% Δ in Real GDP
Quarterly, 1Q00 to 4Q11
Unemployment
Monthly, 1/2006 to 3/2012
Inflation Rate (% Δ CPI)
Monthly, 1/2006 to 3/2012
Two additional variables (your choice) ????
Data Source
www.bea.gov
www.bls.gov
www.bls.gov
????
International Economics Assignment:
In groups of five or six, students will prepare an economic analysis for one of the following
countries: Ireland, Germany, France, United Kingdom, or Italy.
In a 15 minute presentation to the class, provide a “state of the country” analysis. In your
analysis, be sure to discuss the following:
Macro Variable or Topic
Economic Growth (% Δ in Real GDP)
Unemployment
Inflation Rate (% Δ CPI)
Monetary and Fiscal Policies
Government Deficit (Debt)
Major Issues (short run and long run)
Classroom Etiquette:
It is expected that students will display courtesy and respect for each other during class.
Students are expected to arrive on time and to remain until the class ends. Unless it is an
emergency, bathroom breaks should be taken before or after class. Please turn off all cell
phones prior to the start of class. The computer is for coursework only. Please do not surf the
web, check Facebook, or answer emails during class.
Integrity Policy:
The Code of Academic Integrity of Villanova University addresses cheating, fabrication of
submitted work, plagiarism, handing in work completed for another course without instructor’s
approval, and other forms of dishonesty. For the first offense, a student who violates the Code of
Villanova University will receive 0 points for the assignment. The violation will be reported by
the instructor to the Dean’s Office and recorded in the student’s file. In addition, the student will
be expected to complete an educational program. For the second offense, the student will be
dismissed from the University and the reason noted on the student’s official transcript.
Disability Statement:
It is the policy of Villanova to make reasonable academic accommodations for qualified
individuals with disabilities. If you are a person with a disability, please contact me after
class or during office hours and make arrangements to register with the Learning Support
Office by contacting 610-519-5636 or nancy.mott@villanova.edu as soon as possible.
Registration is needed in order to receive accommodations.
Course Outline (subject to change):
Weeks
1-2
(1/17 - 1/26)
Material
Review of syllabus
Chapter 1 - Economics: Foundations and Models
Chapter 2 - Tradeoffs, Comparative Advantage, and the Market System
Chapter 3 – Where Prices Come From: The Interaction of Demand & Supply
3-4
(1/31 – 2/9)
Chapter 6 – Comparative Advantage and the Gains from International Trade
Chapter 7 – GDP: Measuring Total Production and Income
Access GDP data (www.bea.gov)
5
(2/14)
6-7
(2/21 – 3/1)
EXAM I (Chapters 2, 3, 6, and 7) on Tuesday, February 14
Chapter 8 – Unemployment and Inflation
Chapter 9 – Economic Growth, the Financial System, and Business Cycles
Access unemployment and inflation data (www.bls.gov)
Access business cycle data (www.nber.org/cycles.html)
8
SPRING BREAK 
9-10
Chapter 10 – Long Run Economic Growth: Sources and Policies
(3/13 – 3/15) Chapter 11 – Output and Expenditure in the Short Run
Chapter 11 (appendix) – The Algebra of Macroeconomic Equilibrium
10
(3/20)
10
3/22
EXAM II (Chapters 8 through 11) on Tuesday, March 20
Chapter 12 – Aggregate Demand and Aggregate Supply Analysis
Chapter 12 (appendix) - Macroeconomic Schools of Thought
11-13
Chapter 13 – Money, Banks, and the Federal Reserve System
(3/27 – 4/10) Chapter 14 – Monetary Policy
Chapter 15 – Fiscal Policy
13
EXAM III (Chapters 12 through 15) on Thursday, April 12
4/12
14-15
Chapter 16 – Inflation, Unemployment, and Federal Reserve Policy
(4/17 – 4/24)
Minutes from the most recent FOMC meeting (www.federalreserve.gov/fomc/minutes/)
15
(4/26)
Overview of international trade and finances
Macro Measurements assignment due - discussion
16
(5/03)
17
International Econ presentations
FINAL EXAM on May 7 at 11:30AM (Chapters 7 – 16, macro measurements and
internat’l presentations)