Econ 251: Principles of Macroeconomics
Instructor: Dr. Monica Hartmann
Macroeconomics Class Schedule for Fall 2015
MWF 1:30 – OEC 310
MWF 3:25 – OEC 310
Contact Information:
Office Hours: M 2-3:30 p.m., T 5-6 p.m., and by appointment in OEC 402
Office Phone: 651-962-5681
E-mail: mehartmann@stthomas.edu
Class Website: http://courseweb.stthomas.edu/mehartmann/macro/macro_econ.html
Course Description: This is an introductory course in macroeconomics. Although you may not
realize it, you already have been exposed to many of the topics we discuss in this class. Trade
deficits, inflation rates, unemployment rates, fiscal policies, and monetary policies are some of the
macroeconomic terms that appear in the media and in everyday conversations.
Course Objective: At the end of this course, you should be able to understand both the economic
principles underlying the macroeconomy and to be able to apply these principles to 'real world'
situations. In order to accomplish these objectives, many of the examples used in my homework
assignments and test questions are based on current events. I also supplement the textbook with
assigned readings from the Wall Street Journal and the Economist. These articles together with
the textbook will help you better understand macroeconomic concepts and their applications.
Upon completion of this course you should be able to do the following:
1. Describe the basic economic problem of scarcity and apply the notion to real world
situations.
2. Use demand and supply model to explain and predict price changes of a good or service.
3. Be literate in macroeconomic topics, such as unemployment, inflation, recessions, GDP,
and international trade.
4. Understand measures and causes of economic growth.
5. Know the role of the Federal Reserve Bank in the U.S. economy, understand the nature of
money, and understand what affects interest rates.
6. Understand and explain how fiscal and monetary policies affect the economy.
7. Research and write a basic analysis of how economic, socio-cultural, and legal-political
forces affect economic performance.
8. Learn the economic way of thinking and how it can be used to gain insights on
macroeconomic issues of importance in your adult life, such as trade tariffs on imported
goods and Obama’s fiscal policies to stimulate the economy.
Prerequisite: Knowledge of basic algebra and ability to read graphs and most importantly
enthusiasm to learn.
Textbook: McEachern, Macroeconomics – UST Bookstore
Economic Report of the President – http://www.gpoaccess.gov/eop/download.html
In addition to the textbook, I will periodically assign newspaper or journal articles that relate
to the topics discussed in class. These supplemental articles are an essential part of this course.
A copy of them can be downloaded from the class web page.
Class Website: http://courseweb.stthomas.edu/mehartmann/macro/macro_econ.html
Assignments, answer keys, and supplemental readings will be posted on this website.
Grading:
Midterm 1
Midterm 2
Final
Writing Assignments
Class Participation
FOMC Simulation
Homework
20%
25%
25%
10%
10%
5%
5%
The exams comprise of multiple-choice questions, numerical problems, and short answers. If you
have any questions concerning the grading of your work, please come see me. You have two weeks
from the date I return homework or exams to the class to ask me to reexamine the grade. After the
two weeks, grades are final. Significant progressive improvement in your examination grades
may have an additional marginal positive effect on your final grade.
Exam Policy: Make up examinations only will be given in the event of a severe illness, death in
the family, or a University sponsored activity. You must speak directly to me at least 24 hours
prior to the exam. Leaving a message on my voice mail or sending me email is not sufficient. If
approved, we will reschedule the exam at a mutually convenient time. If no arrangements have
been made prior to the scheduled exam time, no make-up exam will be given without a medical
excuse. You will receive a zero for that grade. Also note that possessing a refundable
plane/train/bus ticket is not a valid excuse for a make-up exam.
Exam dates are listed on the course outline. These dates are subject to change, but I will announce
in class any change with at least one-week notice. You are responsible for all information –
lecture material, handouts, assignments, and announcements – given in class regardless if you are
present.
Disability Services: Academic accommodations will be provided for qualified students with
documented disabilities including but not limited to mental health diagnoses, learning
disabilities, Attention Deficit Disorder, chronic medical conditions, visual, mobility, and hearing
disabilities. Students are invited to contact the Disability Resources office about
accommodations early in the semester. Appointments can be made by calling 651-962-6315 or in
person in Murray Herrick, room 110. For further information, you can locate the Disability
Resources office on the web at http://www.stthomas.edu/enhancementprog/.
Homework: Homework assignments are designed to give you the opportunity to practice using
macroeconomic concepts before the exam. I encourage you to work on homework assignments
with other students. However, you must individually write up separate answers in your own
words. You can drop the lowest homework grade.
I view homework as part of the learning process, a first attempt to process ideas and to apply
them to real world events. Therefore, the economic analysis for your homework assignments
does not have to be completely correct to get a 100%. However, your assignments must be
legible, neat, and demonstrate that effort was made in its completion. Homework points are
assigned as follows:

Assignment is complete (but not necessarily 100% correct), legible, neat, and
presented in a professional manner. (grade = 100%)
- Assignment submitted, but there is insufficient effort. It is either incomplete, sloppy,
unclear, or inadequate effort displayed in answering the questions. (grade = 70%)
Zero Assignments that are illegible and/or so poorly attempted are not acceptable and
will not be given any credit. (grade = 0%)
Class Participation: Your class participation grade will be a combination of my analysis of your
attendance, preparation for class, contribution to class discussions, and completion of any in-class
assignments. Why is class participation important? First of all, participation enables students to
learn from each other. As intelligent individuals with diverse academic and personal backgrounds,
you bring different perspectives on an issue. Through an exchange of ideas we can all learn more.
Second, studies show that students who are actively involved in learning are more likely to
remember and to assimilate the material and to apply concepts learned in the classroom to other
situations.
FOMC Simulation: The Federal Open Market Committee (FOMC) meets in Washington, D.C.
once every five or six weeks to vote on whether or not interest rates need to be adjusted to spur or
slow down economic growth in the U.S. The class will simulate a FOMC meeting. More details
on this assignment will be given in the future.
Writing Assignment: During the course of the semester, you will be asked to perform economic
analysis, sometimes individually and sometimes as a group. More information will be provided
throughout the semester.
Office Hours: Prior to exams and homework due dates I will schedule extra office hours. Please
come see me if you are having trouble with the course material or need to clarify some concepts.
Office hours are time I have set aside for you. Office hours, however, will not be used to obtain
tutorial help for classes that were skipped. You are expected to get the notes from your classmates
and read them first and then you can ask me questions about the material that is unclear to you.
Also please take advantage of the time before and after class to ask questions or to clarify what
was discussed in lecture. Economic tutoring is also available in OEC 415. When the tutoring
schedule is announced, I will post it on the class web page.
Studying: The best way to learn, to understand, and to progress beyond memorization, is to study
with your classmates. Do not be shy; introduce yourself to a classmate and study together. You
will not understand economics unless you can explain it clearly and correctly by accepted
standards in economics. So, take turns asking and answering questions of one another. If your
study group is uncertain about any topic, see the tutors and/or me. Please NOTE that studying
together does not replace individual study; it only complements it.
WSJ Subscription: I recommend getting a subscription to the Wall Street Journal. You should
get in the habit of reading news sources and identifying the macroeconomic issues underlying
current news events. Seeing the applications to 'real world' situations will help you grasp the
economic theory.
Course Outline:
I.
II.
III.
IV.
V.
Introduction to Economics and Review, Chapters 1, 2, and 4
Introduction of Macroeconomics, Chapter 5
Productivity & Growth, Chapter 8
Unemployment and Inflation, Chapter 7
Tracking the U.S. Economy, Chapter 6
First Exam – October 15th
VI.
VII.
VIII.
IX.
Aggregate Demand, Chapters 9 and 10
Aggregate Supply, Chapter 11
Fiscal Policy, Chapter 12
Federal Budgets and Public Policy, Chapter 13
Second Exam – November 17th
X.
XI.
XII.
Monetary Policy, Chapters 14, 15, and 16
Macro Policy Debate, Chapter 17
International Finance, Chapter 19
Final Examination – Tuesday, December 17th at 1:30 p.m. (1:30 class)
Tuesday, December 22nd at 10:30 a.m. (3:25 class)