Department of Economics, Bryan School of Business & Economics
The University of North Carolina at Greensboro
ECO 202-02: PRINCIPLES OF MACROECONOMICS
An introduction to the critical analysis of the macroeconomics
Mondays, Wednesdays and Fridays 12:00 pm – 12:50 pm
160 Bryan Building
SPRING 2014
INSTRUCTOR INFORMATION
Dennis Patrick Leyden – 460 Bryan Building, dpleyden@uncg.edu, 256-8558.
Office hours: Almost any time during normal working hours, M-F is possible. I am available for
individual and group meetings. Contact me about getting together.
FOR WHOM PLANNED
This course is a required core course for all Bryan School undergraduate students but is open to all
undergraduate students who want an introduction to the critical analysis of national economies.
ACADEMIC CREDIT
3 semester hours of academic credit. This course also carries General Education Core (GEC) credit in the
Social & Behavioral Sciences (GSB) category.
PREREQUISITE
ECO 101 or ECO 201.
CATALOG DESCRIPTION
Introduction to macroeconomic principles and analysis. Topics include the national income, the monetary
system, inflation, business cycles, fiscal policy, the national debt, exchange rates, balance of payments,
and economic growth.
LEARNING OBJECTIVES
Upon successful completion of this course, student will have met the Student Learning Objectives
(SLOs) for GEC credit in the GSB category:
 GSB SLO 1: Based on empirical information, describe or explain individual behavior or social
conditions, contexts, or institutions. Links with GEC Learning Goal 4: Knowledge of Social
and Human Behavior (with a focus on social conditions).
 GSB SLO 2: Using the theories of the social and behavioral sciences, analyze individual
behavior or social conditions, contexts, or institutions. Links with GEC Learning Goal 4:
Knowledge of Social and Human Behavior (with a focus on social conditions) and Learning
Goal 1: Foundational Skills (with a focus on critical thinking).
To achieve these GSB SLOs within the context of this course, students who successfully complete this
course will be able to critically analyze macroeconomic issues through achievement of the following
course specific SLOs:
 ECO 202 SLO 1: Identify important positive macroeconomic issues present in the economy.
(Links to GSB SLO 1 & GSB SLO 2)
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ECO 202 SLO 2: Identify important public policy and other normative macroeconomic issues
present in the economy. (Links to GSB SLO 1 & GSB SLO 2)
ECO 202 SLO 3: Choose appropriate models and other frames of reference for addressing
macroeconomic issues. (Links to GSB SLO 2)
ECO 202 SLO 4: Gather information appropriate to addressing macroeconomic issues. (Links
to GSB SLO 1 & GSB SLO 2)
ECO 202 SLO 5: Use appropriate information, models, and other frames of reference to analyze
macroeconomic issues. (Links to GSB SLO 1 & GSB SLO 2)
READINGS & OTHER RESOURCES
Required readings for this course are taken from the textbooks:
 Goodwin, N., Nelson, J. A., & Harris, J. (2009). Macroeconomics in Context. Armonk, NY: M. E.
Sharpe.
 Leyden, D. P. (2012). Critical Thinking in Economics, 2nd edition. Charlotte, NC: Kona.
Links to additional materials (video and audio files) can be found on the course Blackboard site:
 Ariely, D. (2008, June 25). How an injury led me to irrationality [Video file]. Retrieved from
http://youtu.be/_K0m3Bq-L5Y. Also available on iTunes.
 Ariely, D. (2009, February 4). The effect of expectations [Video file]. Retrieved from
http://youtu.be/8MS-LvS0aNw. Also available on iTunes.
 Ariely, D. (2009, March 9). The power of price [Video file]. Retrieved from
http://youtu.be/nm5GB7Wu26Q. Also available on iTunes.
 Ariely, D. (2008, January 25). The truth about relativity [Video file]. Retrieved from
http://youtu.be/mAc2VdnK78c. Also available on iTunes.
 Ariely, D. (2008, November 19). The high price of ownership [Video file]. Retrieved from
http://youtu.be/drEVExtrUgQ. Also available on iTunes.
 Duflo, E. (2010, May). Ester Duflo: Social experiments to fight poverty [Video file]. Retrieved
from http://www.ted.com/talks/esther_duflo_social_experiments_to_fight_poverty.html
 Fryer, R. (2009, May 27). Roland Fryer – HWA Speakers Bureau exclusive representation
[Video file]. Retrieved from http://youtu.be/du7V37EF10M
 Machin, S. (2011, March 16). Changes in labour market inequality [Video file]. Retrieved from
http://youtu.be/Rh1mPZQJ7Lk. Also available on iTunes.
 Papola, J., & Roberts, R. (2010, June 22). Fear the boom and bust [Video file]. Retrieved from
http://youtu.be/d0nERTFo-Sk. Also available on iTunes. To sing along, see the transcript at
http://econstories.tv/2010/06/22/fear-the-boom -and-bust/
 Sandel, M. (2009, June 9). Reith Lectures: Markets and morals [Audio file]. Retrieved from
http://www.bbc.co.uk/radio/player/b00kt7sh. Also available on iTunes.
 Taylor, L. (2009, July 15 & 22). Selections from BBC Radio 4’s Thinking Allowed podcast: Is
income inequality more important than economic growth? [Audio file]. Audio posted to The
University of North Carolina at Greensboro’s ECO202.01 Blackboard site, Fall 2013
(http://blackboard.uncg.edu). Note: These selections are taken from:
o Taylor, L. (2009, July 15). Equal societies – teddy bears [Audio file: 0:00-15:30].
Retrieved from http://www.bbc.co.uk/programmes/b00lk12r
o Taylor, L. (2009, July 22). Black girls and British education – Roads [Audio file: 15:0017:00]. Retrieved from http://www.bbc.co.uk/programmes/b00lpc8f#synopsis
Finally, students need to purchase access to the Mobius SLIP website (http://mobius.ctasit.com), an online learning environment designed to promote creativity, critical thinking and communication
competencies within an asynchronous online environment. At the beginning of the semester, Mobius will
use your UNCG email address to send you a message informing you that you are registered for the
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Mobius SLIP website for this course. The email will contain a url for payment as well as a link for the
course.
When you follow the course url, you will be asked to log in. Your UNCG email address from the roster is
your login name. If this is not your first course with Mobius, you will be able to use your existing Mobius
password. Otherwise, you will need to click 'I don't know my password'. This will send you to a page
where you can set up a password. Finally, if you do not receive an email from Mobius SLIP at the
beginning of the semester, email your instructor to let him know. In order to do the first Mobius
assignment, you need to have completed the above process and paid for access to the site by the end of
the day Monday 20 January. If you do not do that, the first Mobius assignment will be one of your
assignment drops as described below.
CONDUCT OF THE COURSE
This course is composed of a series of classes, 18 cooperative and individual learning assignments, and 3
examinations. Classes are used to explain and explicate course material, and to provide an opportunity
for students to further their understanding through discussion and skill building. Cooperative learning
assignments give students the opportunity to deepen their critical macroeconomic thinking skills by
empirically and theoretically analyzing course material, sharing their analyses with fellow students, and
critiquing the analyses of others. Individual learning assignments focus on the development of analytic
skills associated with empirical and theoretical analysis. All examinations are cumulative and provide
students with opportunity to demonstrate their understanding and ability to empirically and theoretically
analyze macroeconomic issues. Because keys are provided, examinations also provide opportunities for
improving understanding and analytic skills.
Cooperative Learning Assignments – There are 5 cooperative learning assignments. These assignments
are conducted using the Mobius SLIP platform. The foci of these assignments are:
 Mobius Assignment 1 – Identification of macroeconomic issues through the analysis of macroeconomic
headlines. (ECO 202 SLOs 1 and 2)
 Mobius Assignment 2 – Choice of appropriate positive and normative macroeconomic frames of
reference through the analysis of an article from The Economist magazine. (ECO 202 SLO 3)
 Mobius Assignment 3 – Use of appropriate information, models, and other frames of reference to
analyze macroeconomic issues through the critical reading of an article from The Economist magazine.
(ECO 202 SLO 5)
 Mobius Assignment 4 – Gathering and analysis of macroeconomic data to address macroeconomic
issues through the comparison of two recession periods in the macroeconomic history of the US. (ECO
202 SLOs 4 and 5)
 Mobius Assignment 5 – Choice of appropriate positive and normative macroeconomic frames of
reference through the analysis of an article from The Economist magazine. (ECO 202 SLO 3)
Individual Learning Assignments – There are 13 individual learning assignments. These assignments
are conducted through a variety of mechanisms – in-class written assignments, out-of-class written
assignments, and online assignments using Blackboard. The purpose of these assignments is to develop a
variety of analytic skills. The foci of these assignments are:
 Individual Assignment 1 - Developing an understanding of what macroeconomics studies (ECO 202
SLO 1)
 Individual Assignment 2 – Distinguishing positive statements from normative statements, and
distinguishing factual statements, reasoned judgment statements, and statements of taste from each
other. (ECO 202 SLOs 1, 2, and 3)
 Individual Assignment 3 – Developing an understanding of frames of reference (ECO 202 SLO 3)
 Individual Assignment 4 – Develop basic critical reading skills (ECO 202 SLO 5)
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 Individual Assignment 5 – Calculation of real and nominal Gross Domestic Product (ECO 202 SLO 5)
 Individual Assignment 6 – Calculation of price indices and inflation measures. (ECO 202 SLO 5)
 Individual Assignment 7 – Search for economic literature and proper reference style. (ECO 202 SLO
4)
 Individual Assignment 8 – Use of the Classical Model to theoretically analyze macroeconomic issues.
(ECO 202 SLO 5)
 Individual Assignment 9 – Use of the Keynesian Model to theoretically analyze macroeconomic issues.
(ECO 202 SLO 5)
 Individual Assignment 10 – Use of the Solow Growth Model and the Phillips Curve Model to
theoretically analyze macroeconomic issues. (ECO 202 SLO 5)
 Individual Assignment 11 – Use of the Aggregate Supply Response-Aggregate Demand Equilibrium
Model to theoretically analyze fiscal and monetary policy in periods of economic depression. (ECO
202 SLO 5)
 Individual Assignment 12 – Use of the Aggregate Supply Response-Aggregate Demand Equilibrium
Model to theoretically analyze fiscal and monetary policy in periods of economic boom. (ECO 202
SLO 5)
 Individual Assignment 13 – Term paper in which students define a macroeconomic issue of their
choosing, take stock of appropriate positive and normative macroeconomic frames of reference, gather
background information and data on the issue, and analyze the issue. (ECO 202 SLOs 1, 2, 3, 4, and
5)
ATTENDENCE POLICY
Students are expected to attend and fully participate in all classes.
ACADEMIC INTEGRITY POLICY
Each student is required to sign the Academic Integrity Policy on all major work submitted for the course.
Refer to UNCG Undergraduate Bulletin/Graduate Bulletin or:
 http://sa.uncg.edu/dean/
In addition, the Bryan School Faculty Assembly and the Bryan School Student Advisory Council have
adopted a set of Faculty and Student Guidelines that defines expected behavior for both faculty and
student. For more information about these Guidelines consult:
 http://bae.uncg.edu/students-resources/
EVALUATION & GRADING
Grading in this course is based on 18 assignments and 3 cumulative examinations. Course grades are
expressed using a 100-point scale with each letter grade range being 10 points (the top third of each grade
range being noted by a plus, and the bottom third of each grade range being noted by a minus). Exam
grades are expressed with the same 100-point scale. Assignment grades are initially expressed on a 6point scale. Then at the end of the semester, the mean assignment score for each student is converted to
the 100-point scale using the Normal distribution. To anchor that Normal distribution, the mean
assignment score (on assignments completed) for the entire class is set to 85, and the highest individual
student mean assignment score is set to 100. The course grade will be calculated to two decimal places,
and there will be no rounding beyond what is used to carry out the calculations to two decimal places.
Thus, for example, a course grade between 80.00 and 83.33 (inclusive) will result in a course letter grade
of B–, a course grade between 83.34 and 86.66 (inclusive) will result in a course letter grade of B, and a
course grade between 86.67 and 89.99 (inclusive) will result in a course letter grade of B+.
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ECO 202 SYLLABUS
The course grade is based on the following weights for the examinations and assignments:
 Examinations*
 1st Examination ............................................................................................................
 2nd Examination ............................................................................................................
 Final Examination ........................................................................................................
 Assignments (lowest 3 grades are dropped)...........................................................................
SPRING 2014
15%
30%
45%
10%
* The 1st and 2nd examinations will be dropped if it raises the student’s course grade. See below for details.
Grading Details
 The 1st examination grade will be dropped and replaced by a later examination grade if that later
examination grade is higher. If both the 2nd examination grade and the final examination grade are
higher than the 1st examination grade, the 1st examination grade will be replaced by the 2nd examination
grade if the 2nd examination grade is higher than the final examination grade, and will be replaced by
the final examination grade if the final examination grade is higher than the 2nd examination grade.
 The 2nd examination grade will be dropped and replaced by the final examination grade if the final
examination grade is higher than the 2nd examination grade.
 Students are expected to begin taking examinations at the beginning of assigned examination times.
No student will be permitted to start the 1st or 2nd examination more than 19 minutes after the start of
those examinations. No student will be permitted to start the final examination more than 29 minutes
after the start of that examination.
 No student will be permitted to temporarily leave the examination room until they have completed their
examination. If a student does leave the room before turning in the examination, that examination will
be considered to have been completed, and it will be collected at that time.
 Because the 1st and 2nd examination grades are dropped and replaced by later examination grades if a
later examination grade is higher, there are no make-ups for the 1st and 2nd examinations.
 For the final examination:
 Students with three or more final examinations in a 24-hour period may apply to the University
Registrar's Office for permission to change their examination schedules. All requests for changes
in examinations must be filed with the University Registrar's Office before Reading Day. The
usual policy is to change the middle examination.
 Students who due to extreme circumstances that are beyond their control cannot take the final
examination at the scheduled time and date may petition to have the final examination
rescheduled. In such circumstances, students should contact the instructor as soon as possible
and provide tangible evidence to support their claim. Examples of situations that are generally
not justifications for rescheduling the final examination include: conflicts with other courses that
do not follow the prescribed final examination schedule, conflicts with work schedules, and
conflicts with end-of-semester travel arrangements. Be aware that any makeup final examination
may take a different format than the regularly scheduled final examination.
 Late assignment submissions are not accepted for any reason, nor are makeups given.
 Assignments are conducted through four mechanisms:
 Online assignments on the Mobius SLIP website
 For each assignment on the Mobius SLIP website, students are assigned randomly to groups
of approximately 6. Each student anonymously submits their own work to the group,
evaluates the work of other group members, and ranks the evaluations received from other
group members.
 The score each student receives is based on their performance as evaluated by their fellow
students relative to the performance of the other students in the group. The maximum
possible score is 6; the average score will be approximately 3. These are relative scores, so it
is almost impossible to get a 6.
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ECO 202 SYLLABUS
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Be sure to note that each of these assignments has 3 deadlines. Those deadlines are available
on the Mobius SLIP website.
Online assignments on the course Blackboard site
 Online assignments on the course Blackboard site are completed on the course Blackboard
site and take the form of some combination of multiple choice, multiple guess, true-false, and
short response.
 The score each student receives is based on the number of questions they answer correctly.
The maximum possible score is 6.
Hardcopy assignments on the course Blackboard site
 Hardcopy assignments on the course Blackboard site are completed outside of class and are
submitted in hardcopy form no later than the date and time assigned. Electronic submissions
(for example, via email) will not be accepted.
 The score is based on the following rubric:
▫ 0 – Not turned in.
▫ 1 to 2 – Less than satisfactory work.
▫ 3 to 4 – The assignment is fully done, and work is generally satisfactory though some
mistakes may be present.
▫ 5 to 6 – The assignment is fully done, and work is completely satisfactory with no
mistakes. Work is especially meritorious.
In-class assignments
 In-class assignments are handed out and completed in class.
 The score is based on the following rubric:
▫ 0 – Not turned in.
▫ 1 to 2 – Less than satisfactory work.
▫ 3 to 4 – The assignment is fully done, and work is generally satisfactory though some
mistakes may be present.
▫ 5 to 6 – The assignment is fully done, and work is completely satisfactory with no
mistakes. Work is especially meritorious.
TOPICAL OUTLINE & CALENDAR
The calendar below provides an outline of course topics and associated readings and other materials. This
calendar also includes the dates for all examinations and the deadlines for all assignments. If the
University cancels one or more classes, this outline and calendar will be revised if necessary. With regard
to examinations, if the University cancels class:
 the day of the 1st or 2nd examination, the affected examination will take place at the next class meeting.
 the day that immediately precedes the class at which the 1st or 2nd examination is scheduled, the
affected examination will be moved forward one class.
 the day of the final examination, check the course Blackboard site for information about rescheduling.
INTRODUCTION .............................................................................................................................. JAN 13, 15
 Readings:
o Leyden, Ch 1
 Audios/Videos
o Ariely, “How an injury led me to irrationality”
o Duflo, “ Ester Duflo: Social experiments to fight poverty”
 Assignments
o Mobius Assignment 1 (opens JAN 21, deadlines JAN 24, 26, & 27 at 11:59 pm)
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WHAT IS MACROECONOMICS? .......................................................................................... JAN 17, 22, 24, 27
 Readings:
o Goodwin, Ch 1
o Leyden, Ch 2
 Videos/Audios
o Ariely, “The effect of expectations”
o Ariely, “The high price of ownership”
o Fryer, “Roland Fryer – HWA Speakers Bureau exclusive representation”
 Assignments
o Individual Assignment 1 (in-class, JAN 17)
o Individual Assignment 2 (online Blackboard assignment, deadline JAN 30 at 11:59 pm)
THE MACROECONOMIC FRAME OF MIND .............................................................JAN 29, 31; FEB 3, 5, 7, 10
 Readings:
o Goodwin, Ch 2, 3, 4
o Leyden, Ch 3
 Videos/Audios
o Ariely, “The effect of expectations”
o Ariely, “The power of price”
o Ariely, “The truth about relativity”
o Taylor, “Is income inequality more important than economic growth?”
o Sandel, “Markets and morals”
o Machin “Truth and relativity”
 Assignments
o Mobius Assignment 2 (opens JAN 31, deadlines FEB 3, 5, & 6 at 11:59 pm)
o Individual Assignment 3 (in-class, JAN 31)
FIRST EXAM .............................................................................................................................. FEB 12
ALTERNATIVE MACROECONOMIC VIEWS ........................................ FEB 14, 17, 19, 21, 24, 26, 28; MAR 3, 5
 Readings:
o Goodwin, Ch 5, 7
o Leyden, Ch 4
 Assignments
o Individual Assignment 4 (in-class, FEB 14)
o Mobius Assignment 3 (opens FEB 14, deadlines FEB 17, 19, & 20 at 11:59 pm)
o Individual Assignment 5 (in-class, FEB 21)
o Individual Assignment 6 (in-class, FEB 24)
o Mobius Assignment 4 (opens FEB 28; deadlines MAR 3, 5, & 6 at 11:59 pm)
SECOND EXAM (cumulative) ..................................................................................................... MAR 7
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ALTERNATIVE MACROECONOMIC VIEWS (cont.) .. MAR 17, 19, 21, 24, 26, 28, 31; APR 2, 4, 7, 9, 11, 14, 16
 Readings:
o Goodwin, Ch 9, 10, 11 (sections 1, 4, 5), 14 (sections 1, 2, 3)
o Leyden Ch 5
 Videos/Audios
o Papola & Roberts, “Fear the boom and bust”
 Assignments
o Individual Assignment 7 (online Blackboard assignment, deadline MAR 25 at 11:59 pm)
o Mobius Assignment 5 (opens APR 4, deadlines APR 7, 9, 10 at 11:59 pm)
o Individual Assignment 8 (hardcopy assignment – due before class begins APR 11)
o Individual Assignment 9 (hardcopy assignment – due before class begins APR 14)
o Individual Assignment 10 (hardcopy assignment – due before class begins APR 16)
ANSWERS TO MACRO QUESTIONS .............................................................................. APR 21, 23, 25, 28, 29
 Readings:
o Goodwin, Ch 12
 Assignments
 Individual Assignment 11 (hardcopy assignment – due before class begins APR 28)
 Individual Assignment 12 (hardcopy assignment – due before class begins APR 29)
 Individual Assignment 13 (hardcopy assignment – due in class APR 29)
FINAL EXAM (cumulative) ............................................................. FRIDAY MAY 2, 12:00 PM – 3:00 PM
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