Syllabus for ECON-100 (Macroeconomics) Section 010
Classes meet Mondays and Thursdays from 9:55 am to 11:10 am
Instructor: Dr. Bernhard (Ben) G. Gunter
Office Hours (207 Roper):
EM: gunter@american.edu
Wed 10:00 am – 11:00 am
Tel.: 571-309-3261 (9 am - 9 pm; Mon-Fri)
Thu 11:20 am – 1:00 pm
(and by appointment)
Course Objective
The main objective of this course is to familiarize you with the basic macroeconomic
principles, terminologies and concepts such that you can understand how modern
economies, like that of the United States, work. It is likely that you will encounter many of
these principles, terminologies, and concepts in your future life. For example, you already know
that the economy is currently in a recession. But what does it mean? How might it impact your
life and your future decisions? Assume you plan to go to graduate school. How might the
economic recession affect your acceptance rate for graduate school?
Course Description
This course provides an introduction to modern macroeconomics. It familiarizes you with the
production possibility model, the concepts of aggregate supply and aggregate demand, the
determinations of economic growth, unemployment, and inflation. It also provides the tools for
how to track the economy, and how fiscal and monetary policy are defined and used in modern
economies. It introduces the business cycle, i.e., the periodic but irregular up-and-down
movements in economic activity, as well as the financial system and financial fluctuations.
Finally, it introduces some aspects of international macroeconomics, including international
trade, international finance, and the effects of macroeconomic policies on the trade balance.
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Grading
Grading will be based on homework (15 percent), quizzes (15 percent), two midterm exams
(each 15 percent), and a cumulative final exam (40 percent).
Homework
There will be 10 homework assignments. While you are encouraged to hand in all 10 assignments, only
the eight best ones will be counted towards your grade. Hence, the effective contribution of each counted
homework is 1.875 percent of your grade. You are welcome to submit your homework via EM or by
handing it in at the beginning of the class as determined in the detailed course outline below. Homework
will not be accepted late. There is no possibility to make up any missed homework. Study groups are
highly recommended though not required. Discussion of homework is encouraged. However, each student
must write up the homework on her/his own. Homework may cover new material or extensions not
covered in class, and mastery of this material will be assumed in all classes subsequent to its assignment.
Quizzes
There will be four quizzes with the dates as stated below. Only the two best quizzes will be counted
towards your grade. Hence, you can miss two quizzes without any penalty and the effective contribution
of each counted quiz is 7.5 percent of your grade. There will not be any possibility to make up any missed
quiz.
Midterm Exams
The first midterm (covering Chapters 1-5 of our textbook) will be held on Thursday, February 12, 2009.
The second midterm (covering Chapters 6-10 of our textbook) will be held on Monday, March 23, 2009.
Makeup mid-term exams will only be offered to students providing a doctor’s excuse. The make-up
option for the missed first mit-term will be provided on Sunday, February 15, 2009, in Roper 207 from
9:00 am to 10:15 am. The make-up option for the missed second mid-term will be provided on Sunday,
March 29, 2009, in Roper 207 from 9:00 am to 10:15 am. You will need to inform the instructor by EM at
least 24 hours before the make-up if you intend to make use of the make-up option. There are typically no
make-ups of missed make-up exams.
Final Exam
Consistent with AU’s final examination schedule, the final exam for this course will be held on Thursday,
April 30, 2009 from 8:30 am to 11:00 am. The final exam will be cumulative, covering the whole course.
The final exam presumes a thorough knowledge of lectures, the relevant parts of the textbook, as well as
homework assignments given throughout the semester. A make-up final exam will only be offered to
students providing a doctor's excuse within one week after the missed final exam. The make-up option for
the final exam will be provided on May 7 from 8:30 am to 11:00 am in 207 Roper. Hence, missing the
final exam will imply that you get an incomplete for this course. You will need to inform the instructor by
EM at least three days before the make-up date if you intend to make use of the make-up option.
Academic Integrity
Please note that the academic integrity code is strictly enforced for all homework, quizzes, and exams. If
you have not already done so, please familiarize yourself at:
http://www.american.edu/academics/integrity/code.htm
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Course Resources
Required Textbook
Macroeconomics (7th edition)
Author: David C. Colander
Publisher: McGraw-Hill/Irwin
Though not required, the accompanying Study Guide (written by Colander, Copeland and Gamber) is
highly recommended as it provides a review of the concepts from each chapter and gives additonal
options to check your knowledge and understanding.
Blackboard
This course will use AU’s Blackboard software. Check your AU E-mail for announcements, handouts,
homework assignments, solutions of homework, quizzes, exams. It is your responsibility to check your
AU E-mail. Please make use of the E-mail forwarding option if you do not use your AU E-mail regularly.
Academic Support Center
AU’s Academic Support Center (ASC) provides various services and programs for any student at
American University who would like help in developing the tools necessary for their success. Please see
http://www.american.edu/ocl/asc/index1.html for further details.
Detailed Course Outline
Class 1: Monday, January 12, 2009
Economics and Economic Reasoning (Chapter 1)
Class 2: Thursday, January 15, 2009
The Production Possibility Model, Trade, and Globalization (Chapter 2)
Homework 1 will be e-mailed via Blackboard around 3pm
[Monday, January 19: Martin Luther King Jr. Holiday (no class)]
Class 3: Thursday, January 22, 2009
The Language of Graphs (Appendix A behind Chapter 2) and the Concept of Elasticity (handout)
Homework 1 due; answer sheet for homework 1 will be e-mailed via Blackboard around 3pm
Class 4: Monday, January 26, 2009
Guest Lecture: The 2008 Financial Crisis and Economic Slowdown
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Class 5: Thursday, January 29, 2009 Quiz 1 (covering Chapters 1 to 2)
Economic Institutions (Chapter 3)
Homework 2 will be e-mailed via Blackboard around 3pm
Class 6: Monday, February 2, 2009
Supply and Demand (First half of Chapter 4)
Homework 2 due; answer sheet for homework 2 will be e-mailed via Blackboard around 3pm
Class 7: Thursday, February 5, 2009
The Interaction of Supply and Demand and Limitations (Chapter 4, second half)
Homework 3 will be e-mailed via Blackboard around 3pm
Class 8: Monday, February 9, 2009
Using Supply and Demand (Chapter 5)
Homework 3 due; answer sheet for homework 3 will be e-mailed via Blackboard around 3pm
Class 9: Thursday, February 12, 2009: First Midterm Exam
(Covering Colander Chapters 1 to 5)
Class 10: Monday, February 16, 2009
Economic Growth, Business Cycle, and Inflation (First, second and fourth sections of Chapter 6)
Homework 4 will be e-mailed via Blackboard around 3pm
Class 11: Thursday, February 19, 2009
Unemployment (Third section of Chapter 6)
Homework 4 due; answer sheet for homework 4 will be e-mailed via Blackboard around 3pm
Homework 5 will be e-mailed via Blackboard around 3pm
Class 12: Monday, February 23, 2009
Measuring the Aggregate Economy (Chapter 7)
Homework 5 due; answer sheet for homework 5 will be e-mailed via Blackboard around 3pm
Class 13: Thursday, February 26, 2009 Quiz 2 (covering Chapters 6 and 7)
Growth, Productivity, and the Wealth of Nations (Chapter 8)
Class 14: Monday, March 2, 2009
Aggregate Demand & Aggregate Supply (First half of Chapter 9)
Homework 6 will be e-mailed via Blackboard around 3pm
Class 15: Thursday, March 5, 2009
Equilibrium in the Aggregate Economy & Macro Policy (Second half of Chapter 9)
Homework 6 due; answer sheet for homework 6 will be e-mailed via Blackboard around 3pm
Spring Break (March 8-15, 2009)
Class 16: Monday, March 16, 2009
The Multiplier Model (Chapter 10)
Homework 7 will be e-mailed via Blackboard around 3pm
Class 17: Thursday, March 19, 2009
Review of Chapter 6 to Chapter 10 of Colander
Homework 7 due; answer sheet for homework 7 will be e-mailed via Blackboard around 3pm
Class 18: Monday, March 23, 2009: Second Midterm Exam
(Covering Colander Chapters 6 to 10)
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Class 19: Thursday, March 26, 2009
The Financial Sector (First half of Chapter 11)
Class 20: Monday, March 30, 2009
The Demand for Money & the Role of the Interest Rate (Second half of Chapter 11)
Homework 8 will be e-mailed via Blackboard around 3pm
Class 21: Thursday, April 2, 2009
Monetary Policy (Chapter 12)
Homework 8 due; answer sheet for homework 8 will be e-mailed via Blackboard around 3pm
Class 22: Monday, April 6, 2009 Quiz 3 (covering Chapter 11 to 12)
Inflation (First half of Chapter 13)
Class 23: Thursday, April 9, 2009
The Phillips Curve & the Relationship between Inflation and Growth (Second half of Chapter 13)
Class 24: Monday, April 13, 2009
Fiscal Policy and Public Finance (Chapter 14)
Homework 9 will be e-mailed via Blackboard around 3pm
Class 25: Thursday, April 16, 2009
Politics, Deficits, and Debt (Chapter 15)
Homework 9 due; answer sheet for homework 9 will be e-mailed via Blackboard around 3pm
Class 26: Monday, April 20, 2009 Quiz 4 (covering Chapters 13 to 15)
Selected Issues of International Trade (Chapter 16)
Homework 10 will be e-mailed via Blackboard around 3pm
Class 27: Thursday, April 23, 2009
Selected Issues of International Finance (Chapter 17)
Homework 10 due; answer sheet for homework 10 will be e-mailed via Blackboard around 3pm
Class 28: Monday, April 27, 2009
Selected Issues of Macro Policy in a Global Setting (Chapter 18)
An optional (highly recommended) Review Class will be held
on Wednesday, April 29 from 9 am to 11 am (place tbd).
Additional office hours will be offered on Wednesday, April 29 from 11 am to 3:30 pm (place tbd).
Thursday, April 30, 2009, 8:30 am – 11:00 am
Final Cumulative Exam
(Covering Colander Chapters 1 to 18)
Note: Every effort will be made to follow this syllabus. However, exceptional situations may (at the discretion of
the instructor) require exceptional changes.
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