Purdue North Central Honors Course Proposal
Submission Date:
(Date sent to Honors
Program Subcommittee)
6/14/2012
Document No:
12-H-01
(Leave blank)
Submitting Dept:
Course number and title:
Economics 25200
Macroeconomics
Reviewed by Department:
(Date reviewed by
department)
Reviewed by Honors
Subcommittee: (Leave blank)
6/14/2012
(Name of
dept/pgm)
Course instructor:
(Name & Title)
7/3/2012
Business and Leadership
Derek Bjonback, Associate
Professor of Economics
Approval by
Faculty Senate:
(Leave blank)
Unless marked “Leave blank” all parts of this form must be filled in before sending to the Honors Program Subcommittee.
Current catalog description of course. (For new courses, or changes to current catalog descriptions or course objectives, a
curriculum document must also be submitted)
An introduction to macroeconomic theory. The course develops a theoretical framework permitting an
analysis of the forces affecting national income, employment, interest rates, and the rate of inflation.
Emphasis is placed upon the role of government fiscal and monetary policy in achieving full employment and
stable prices.
Current course objectives.
1. Defining the field of economics, and the modes of economic analysis of private and public decisionmaking.
2. How to measure (and appreciate the limitations of) macroeconomic performance, in terms of output,
employment, and inflation.
3. Develop a basic understanding of macroeconomic models of the economy, and their application to
explain the behavior of the economy over the business cycle.
4. Develop a basic understanding of the role of fiscal and monetary policy to address economic
stabilization objectives (low unemployment and inflation, and steady long term growth).
Provide a description of the honors component of the course, showing how the course will meet PNC’s
definition of an honors course.
The Honors course requires the student to write four papers related to the four objectives of the course. The
intent is to require the student to apply the theory to current issues of decision-making (scarcity and choice,
supply and demand), and the economic history of the last business cycle starting in 2001. This process will
engage the student at a deeper level, requiring research into the data and interpretation of the data using the
theoretical concepts of the course. Other students are evaluated with shorter homework projects, and in class
quizzes covering theoretical concepts.
Topic (1): Defining economics, the economizing problem. The Honors student will be required to write a short
paper (5 pages) on two issues raised in the media, applying the concepts of scarcity, opportunity cost, decisionmaking and supply and demand. Critical and supportive comments on the media articles are expected, using the
theoretical concepts.
Topic (2); Measuring economic performance. Write a short paper (5 pages) addressing Gross Domestic Product
(GDP) per capita and its growth as a measure of economic performance, relative to other measures of social and
economic development. The Honors student will select a (developed) peer country to the United States, and a
developing country to compare and contrast economic performance using GDP and other non-economic
measures such as child mortality rates. A critical review of the utility of GDP and other measures, and the
complexity of comparisons of economic development will be required.
Topic (3): Macroeconomic models. Write a short paper (8 pages) describing the performance of the US economy
since 2001, including the expansion of 2001 to 2008, decline 2008 during 2009, and recovery to the present. The
paper provides the opportunity to apply the models to the components of macroeconomic change, including
consumption, investment, government spending, and foreign trade, to explain overall economic performance in
terms of GDP and employment.
Topic (4): Macroeconomic policy. Write a short paper (8 pages) describing the performance of the US economy
since 2001 relative to the role of fiscal policy (government spending and taxation) and monetary policy. This
builds on Topic (3) by adding commentary and assessment of the policy tools available to attempt to manage
macroeconomic performance.
Describe how the honors version of the course will meet course objectives in a more complex, challenging, or
enriching way.
Honors students are expected to go beyond understanding the theories to applying the theory to economic issues (topic (1)),
and actual data related to the business cycle (topics (2) to (4). Other students are required to undertake homework
assignments that assess more narrowly the application of mechanics (topic (1)); and that require less research and
interpretation of data (topics (2) to (4).
Describe how honors students’ work will be evaluated.
The four papers will be evaluated in terms of critical thinking/application of the concepts, models, and policy
instruments to real world issues and data.
Please also submit a syllabus for the non-honors version of this course.
(Boxes will expand and spill over onto next page to accommodate your typing.)