American University
Department of Economics
ECON 100.004
Macroeconomics
Spring 2009
TF: 8:30AM – 9:45AM
Hurst 1
Aaron Pacitti
Office: Roper 207
Email: aaron.pacitti@american.edu
Office Hours: W: 10:00PM – 11:00PM
(and by appointment)
– Syllabus –
Course Objectives
This course will provide an introduction to the basic principles of macroeconomics, including national income,
unemployment, inflation, economic growth, depression, income distribution, international economics, economic
development, alternative approaches to economics, and current issues and controversies. We will begin with a brief
historical survey of previous economic arrangements. Significant attention will be paid to theorists who have impacted
the development of modern economic thinking and policy making. The basic theoretical foundations of
macroeconomics will be discovered and analyzed within the context of the problems they purport to solve. The course
will progress chronologically through various epochs of economic development and will conclude with an overview of
the modern macroeconomy.
Required Textbooks
David C. Colander, Macroeconomics. 6th ed. Boston: Irwin, 2005.
Robert Heilbroner & William Milberg, The Making of Economic Society. 12th ed. Upper Saddle River: Prentice Hall, 2006.
Robert Heilbroner, The Worldly Philosophers. 7th ed. New York: Simon and Schuster, 1999.
The Wall Street Journal. One semester subscription.
General Education Requirements
This course, ECON 100 Macroeconomics, is one of five foundation courses in Curricular Area 4 (Social Institutions and
Behavior), Cluster 1 (Institutions) in American University’s General Education Program. It is the first of a two-course
sequence. Students who take ECON 100G Macroeconomics may complete the General Education sequence in Social
Institutions and Behavior by taking one of the following second-level courses in Area 4, Cluster 1:
AMST-240G Poverty and Culture
COMM-275G Dissident Media: Voices from the Underground
ECON-200G Microeconomics
FIN-200G Personal Finance and Financial Institutions
GOVT-210G Political Power and American Public Policy
GOVT-215G Civil Rights and Liberties
PHIL-240G Ethics in the Professions
SOCY-210G Inequality: Class, Race, Ethnicity
WGST-225G Gender, Politics, and Power
Each of these courses explores a topic introduced by this course in more depth. Students can build on the learning
experiences of this foundation course by further study of the subjects they have found most interesting. For more
information, please refer to http://www.american.edu/american/registrar/geninfo/gened4.htm.
Academic Integrity
Standards of academic conduct are set forth in the University's Academic Integrity Code
(http://www.american.edu/academics/integrity/code.htm). By registering, you have acknowledged your awareness of
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the Academic Integrity Code, and you are obliged to become familiar with your rights and responsibilities as defined by
the Code. Violations of the Academic Integrity Code will not be treated lightly, and disciplinary actions will be taken
should such violations occur. Please see me if you have any questions about the academic violations described in the
Code in general or as they relate to particular requirements for this course.
Course Requirements
Exams: A midterm will be given in class on Friday, March 6th and the final examination is to be held in class on
Tuesday, May 5th. Exam details will be discussed at a later date. The final exam will not be cumulative. No make-up
exams will be given (except in the case of documented medical or other emergencies).
Economic News Analysis (ENA): Students will be required to submit a total of two 1-2 page critical assessments of a
newspaper article assigned by the professor. Your job is to apply the tools and logic learned in class to current economic
events. The use of graphs and concepts discussed in class is required. ENA 1 will be due on Tuesday, February 24th
and ENA 2 is due on Friday, April 3rd.
Reaction Papers: Students are also required to submit two reaction papers for a specific set of readings. The first paper will
cover the birth of capitalism and is due on Tuesday, February 10th. The second paper will look at issues confronting
modern capitalism and is due on Friday, April 17th. Both papers must be approximately 1,400 words in length (4
double-spaced pages). More information will be provided at a later date.
All assignments must be turned in on the due dates listed above and must be submitted as typed hard copies—no
assignments will be accepted via email!
Grading
A student’s final grade is determined by their performance on the above-listed assignments. I do not give extra credit
assignments for any reason. Class participation is an important part of this course and a student’s involvement in
discussions can help them if they fall between two grades at the end of the semester. Significant improvement in a
student’s performance during the semester will be weighed on an individual basis upon final evaluation.
The specific weights of assignments that will determine your final grade are as follows:
Midterm: 30 percent
Final: 30 percent
ENAs: 20 percent
Reaction Papers: 20 percent
Evaluation of a student's performance in this course will be determined by the following criteria:
A: demonstration of superlative work in fulfillment of course requirements
A: 93 – 100; A-: 90 – 92
B: excellent work in fulfillment of course requirements
B+: 87 – 89; B: 83 – 86; B-: 80 – 82
C: satisfactory work in fulfillment of course requirements
C+: 77 – 79; C: 73 – 76; C-: 70 – 72
D: assigned work is not satisfactory or not completed
D: 60 – 69
F: failure to meet minimum course requirements
F: 0 – 59
Attendance
You are expected to attend all of the classes during the course of the semester. You are expected to be in class on time.
Absences will be excused for documented medical reasons or extenuating circumstances only. Attendance will be taken
at random. You will not be penalized for one absence. However, each additional absence prior to the midterm will
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subtract two points from your midterm grade. After the midterm, each absence will subtract two points from your final
examination score.
Course Schedule
All below-listed readings (with the exception of required textbooks) have been placed on two-hour reserve in the library.
Many of these readings are available as e-reserves through the course’s Blackboard website. Additional readings may be
added throughout the semester. The dates following each section heading are tentative. I will keep you abreast of any
changes to the schedule and will also provide detailed information regarding reading assignments throughout the
semester.
1. Introduction: Economics and Society (1/13)
Colander, chs. 1, 2
Heilbroner and Milberg, ch. 1
John Kenneth Galbraith, The Affluent Society, ch. 9
2. Historical Forms of Economic Organization & Basic Supply and Demand (1/16, 1/23)
Colander, chs. 3 (including Appendix A), 4
Heilbroner and Milberg, ch. 2
Note: No Class on Tuesday, January 20th (Inauguration Day)
3. The Origins of Capitalism & Economic Theory (1/27, 1/30)
Heilbroner and Milberg, chs. 3, 4
Heilbroner, chs. 1-3
Adam Smith, The Wealth of Nations, Book I, chs. 1-3
4. Reactions to Capitalism (2/3)
Heilbroner and Milberg, ch. 5
Heilbroner, chs. 4-6
Karl Marx and Friedrich Engels, The Manifesto of the Communist Party. All.
5. Market Dynamics: More on Supply and Demand (2/6)
Colander, ch. 5
Milton Friedman, Capitalism and Freedom, chs. 1, 2
6. The Macroeconomic Framework (2/10, 2/13, 2/17, 2/20, 2/24, 2/27, 3/3)
Colander, chs. 6-12
Heilbroner, chs. 8, 9
Heilbroner and Milberg, ch. 6, 7
Paul Krugman, Introduction to The General Theory of Employment, Interest, and Money (available under Course
Documents on Blackboard)
Thorstein Veblen, The Theory of the Leisure Class, ch. 4
Tuesday, February 10th: Paper 1 due
Tuesday, February 24th: ENA 1 due
Friday, March 6th: Midterm Exam (Sections 1-6)
Note: No class on Tuesday, March 10th, Friday, March 13th (Spring Break), and Tuesday, March 17th
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7. The Post-WWII Economy: Stabilization & Management (3/20, 3/24, 3/27, 3/31, 4/3, 4/7)
Colander, chs. 13-15
Heilbroner and Milberg, chs. 8-10
John Kenneth Galbraith, The New Industrial State, chs. 1, 3, 18
John Kenneth Galbraith, The Affluent Society, ch. 11
Friday, April 3rd: ENA 2 due
8. Market Failures & Public Goods (4/10)
John Kenneth Galbraith, The Affluent Society, ch. 17
9. Income Distribution & the Economics of Inequality (4/14)
James K. Galbraith, Created Unequal, ch. 1
10. Labor Markets & Reasons for Unemployment (4/17)
Jon D. Wisman & Aaron Pacitti, ―U.S. Labor Re-examined 1880 - 1930: Success, Ideology, and Reversal‖
(available under Course Documents on Blackboard)
Friday, April 17th: Paper 2 due
11. The “New” Economy & Technological Change (4/21)
Thomas Frank, One Market Under God, Preface, ch. 1
Robert Shiller, Irrational Exuberance, chs. 1, 3, 5
Dean Baker, ―The New Economy: A Millennial Myth.‖ Available at:
http://www.cepr.net/index.php/op-eds-columns/op-eds-columns/the-new-economy-a-millenial-myth/
12. International Trade, Economic Development, and Globalization (4/24, 4/28)
Colander, chs. 16-19
Heilbroner and Milberg, ch. 12-14
Robin Hahnel, Panic Rules, chs. 1, 6
Tuesday, May 5th: Final Exam (Sections 7-12), 8:30am-9:45am
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