ECON 1041/PRINCIPLES OF MACROECONOMICS
SYLLABUS FOR FALL, 2016
INSTRUCTOR: Ken McCormick Office: CBB 213
Phone: 273-6051
Office Hours: MWF 1:00 - 2:00 and by appointment
E-mail: kenneth.mccormick@uni.edu
Web Page: http://business.uni.edu/mccormick/
REQUIRED BOOK: The textbook for this course is a modified version of an
open-source principles of macroeconomics text. It is FREE. To get the book
either:
1. Download a PDF of the book from the “Course Content” section of the
eLearning page for this course.
OR
2. Download a PDF of the book from my website. Go to
http://business.uni.edu/mccormick/920053.html and click “Textbook.”
OR
3. Read the book online. Go to
http://cnx.org/contents/XAso43D4@18.1:8nzQ7__4@2/Preface
You can navigate through the online book by clicking the blue “Contents”
button in the upper left. You can also download a PDF of the book from this
site by clicking the green “Get This Book” button in the upper right. You may
be asked for a donation, but you do not have to donate.
COURSE OUTLINE AND READING LIST:
TOPIC
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
Welcome to Economics
International Trade
Demand and Supply
The Macroeconomic Perspective
Economic Growth
Unemployment
Inflation
The Aggregate Demand and Aggregate
Supply Model
Money and Banking
Monetary Policy and Bank Regulation
Fiscal Policy
Exchange Rates
International Trade and Capital Flows
Globalization and Protectionism
(Time Permitting)
READING ASSIGNMENT
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
1
2
3
4
5
6
7
8
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
9
10
11
12
13
14
What is the purpose of this course?
Most students take Principles of Macroeconomics because it is required for
their major. Yet you should know why this requirement exists. The purpose of
the course is threefold:
1. To introduce you to the discipline of economics. The news media regularly
report important economic events and statistics. The course will help you
understand these events and statistics, and, more importantly, help you
understand what determines them. Knowledge of economics will therefore
help you make better decisions in your career and as a citizen.
2. To help you recognize that some of what politicians and journalists tell us
about the economy is just plain wrong. Robert Solow, a Nobel-Prize
winning economist, put it this way:
Maybe the main function of economics in general is not, as we
usually think, the systematic building of theories and models, or
their empirical estimation. Maybe we are intellectual sanitation
workers. The world is full of nonsense, full of things people and
institutions know that 'ain't so.' Maybe the higher function of
economics is to hold out against nonsense.... All those theories
and models we invent and teach are just nature's way of making
people who know nonsense when they see it.
3. To exercise your mind and sharpen your reasoning skills. Today, more
than ever, one of the most important assets a person can have is a strong
mind. As the pace of technological change accelerates, we will have to
learn and adapt faster than ever before. The only way to strengthen one's
mind is to exercise it. This course will give you plenty of healthy mental
exercise.
HOMEWORK
There is a series of questions at the end of every section within each chapter of
the textbook. Some are called “Self-Check Questions,” some are “Review
Questions,” some are “Critical Thinking Questions,” and some are “Problems.”
The answers to the Self-Check Questions are in the textbook. The answers to
the other questions can be found in the “Solutions” folder in the “Content”
section of the eLearning page for this course. The homework will NOT be
turned in; it exists so you can gauge your level of understanding. You should
answer all of the questions as best you can BEFORE you look at the answers.
TESTS:
There will be a total of four multiple-choice tests. The first three will have 40
questions while the fourth (the final) will have 60 questions. Test questions
will emphasize the material covered in the lectures, but there will also be some
questions from the reading assignments about things not necessarily covered
in class.
It has been my experience that people who practice what they learn tend to do
better than people who don't. To encourage you to practice your economics, each
exam will have many questions derived from the homework questions.
Dates for the first three tests will be announced in class as the semester
progresses. The fourth test will be during the time allotted for our final, which
will be partly comprehensive.
QUIZZES:
There will be four quizzes, each worth 5 points. The quizzes will NOT be
multiple choice. The purpose of the quizzes is to encourage you to keep up.
Economics is easier if you work at it on a regular basis instead of trying to
learn everything just prior to an exam.
GRADES:
At the end of the semester, the total number of points you have earned will be
divided by the number of points earned by the highest scoring student in the
class. The resulting percentage will then be applied to the following scale:
.90 - 1.00
.80 - .89
.70 - .79
.60 - .69
< .60
A
B
C
D
F
A plus or minus will be added to scores close to the boundaries.
There is NO extra credit in this class. Spend the time you would’ve spent on the
extra credit studying to do better on the exams and quizzes.
How to get your money’s worth from the class:
You pay to go to school here. Unless you enjoy wasting money, you should
want to make sure you get the education you are paying for. Principles of
Macroeconomics is not an easy course for most people. Across all instructors,
roughly one third of the students who start this course will drop the course or
earn a D or an F. To pass this class, you will have to develop the self-discipline
necessary to succeed in all courses in the College of Business Administration.
I therefore suggest that you:
1. Attend class regularly. If you are unable to attend class, the lectures will
be available on video. Go to the “Content” section of the eLearning page,
click on the “Lecture Videos” folder, and then click on the video you want to
watch. Be advised that the videos are NOT of Hollywood production quality.
2. Read the book. You are responsible for all of the material presented in the
textbook, whether we talk about it in class or not. In addition to taking
lecture notes, you may also want to take notes on the readings. These notes
will not only be a useful study aid, but you may be surprised to discover
how writing them will improve your comprehension of the readings. If taken
seriously, writing forces you to think clearly.
One of the central tasks of a university is to teach you how to learn. The
amount of knowledge humanity possesses is growing at a tremendous rate,
which means that after you graduate, you will have to keep learning in order
to keep up in the "real world." Most of you will not be able to learn what you
need to know from a professor or a teacher, so you will have to teach
yourselves. Usually that will mean reading something. It is therefore a good
idea to exercise and improve your reading skills and to learn how to
summarize in writing the essence of what you have read for future
reference.
3. Do the homework! The homework will help you determine if you really
understand the material or if you just think you do. The most common
remark I hear from students after tests is "I thought I understood the
material before I took the test." This is an indication that these students
have a passive understanding of the material (i.e. can follow along when
somebody else does it) but not the active understanding that is required on
an exam (i.e. cannot do the problems on their own). The homework gives
you practice working with the material and allows you to gauge your level of
understanding.
4. Keep up. The best way to learn the material is a little at a time. If you wait
until just before an exam to study you are not likely to do well. Besides, if
you wait until the last minute to study, you may not have time to get your
questions answered.
5. Take Advantage of the Supplemental Instruction. Nick Croston will be
your supplemental instruction leader. He will hold sessions on Tuesdays
and Thursdays from 5:00 to 6:30 P.M. His job is to help you better
understand the material in the lectures and the textbook.
6. Network with other students in the class. Create a group that can help
each other. Don’t be shy; you will find that good networking skills will be
valuable in your career too.
7. Remember that strengthening your mind is like strengthening your
body—no one else can do it for you. A physical trainer can tell you what
you must do to become physically fit, but you must do the exercises and
bear the pain. Likewise, a professor can tell you what you must do to
become mentally fit, but you must put in the time and bear the pain. If you
diligently apply yourself in this class you will not only learn some
economics, but, more importantly, you will find that your mind will be
considerably stronger.
8. Get help when you need it. If the explanations given in class and in the
book are not sufficient, DO NOT HESITATE to get help. Go to the
supplemental instruction. We will also have free tutors available (times will
be announced in class). And you are welcome to see me during my office
hours or by appointment.
FINAL NOTES:
1. You are expected to show respect and consideration to the other students in
the class. Among other things, that means that you are expected to be quiet
during the lectures so that other students can hear them. Attendance is not
taken in this course, so if you don’t want to be here, don’t come.
2. Cheating on quizzes and exams is always a potential problem. As vigilant as
I try to be, I am trained as an economist, not as a policeman. For the vast
majority of you, I am sure that a simple appeal to your personal honor
and/or spiritual beliefs is sufficient. For the rest of you, I will appeal to
your self-interest: Anyone caught cheating (or aiding and abetting cheating)
will be subject to disciplinary action. UNI has given every instructor the
authority to punish cheating in a variety of ways, including giving the
student a grade of F and seeking his/her expulsion from the University.
In the recent past there has been a significant problem with people cheating
by means of “smart” phones and other electronic devices. Consequently you
may NOT use any such device during a quiz or exam. You ARE allowed to
use a calculator. You may NOT use a phone as a calculator.
3. Our economy is globalized. When you graduate you will be competing with
people from all over the world. Some people work incredibly hard in order to
get an edge and to get ahead. The competition is fierce. If you want to be
able to compete, push yourself now. Develop self-discipline. Iowans are
known for their good work ethic, and you will need it.
4. Remember: Education is not something you buy. Education is a process
that transforms you. It is a prize that must be won with hard work.
The Americans with Disabilities Act
"The Americans with Disabilities Act of 1990 (ADA) provides protection from
unlawful discrimination for qualified individuals with disabilities. Students
requesting instructional accommodations due to disabilities must arrange for
such accommodation through the Office of Disability Services. The ODS is
located at 103 Student Health Center, and the phone number is 273-2676.”