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Rockhurst University
Helzberg School of Management
[EC 3000 Intermediate Macroeconomics ]
[LCA 20523 ]
[SPRING, 2012]
Instructor:
Professor Michael Tansey
Classroom:
Conway 204
Meeting Time: TTh 12:30 PM 1:45 PM
Office:
CONWAY 313
Office hours: 11:00 a.m.-12:30p.m. T and Th; and by appointment.
Also, beginning March 24 from 4:30 to 5:30 pm on Monday
School Meetings are frequently scheduled at the 2:30-5 p.m. time slotplease call me to schedule office hours ahead of time if you need to see me during
that time. Also call to schedule times outside of normal office hours. I
particularly like to attend group study sessions, so organize one, call me ahead of
time, and we’ll meet.
Telephone:
Tansey [cell phone at 485-7550]
E-mail:
michael.tansey@rockhurst.edu
Fax:
816-501-4693
Course Website: http://cte.rockhurst.edu/tanseym. Under “courses” click on Ec 3000
Text:. There are three basic sources of information used in the course:
1)
Class SYLLABUS, ASSIGNED READING IN THE TEXTBOOK,
ASSIGNMENTS, NOTES (chapters), CASES, AND POWER POINT SLIDES FROM
LECTURE will be on the website: cte.rockhurst.edu/tanseym under the course “EC3000
” They are continually revised throughout the course depending on the speed of learning
of the class. It will be necessary to reference this site regularly to keep up-to-date on
everything posted.
2) Make sure you have access and know how to use the online New York Times (http://
www.nytimes.com) and Wall Street Journal (http://online.wsj.com/public/us).
3) Your WEBCT account. For security purposes it will be necessary to send you any
information on your grade through your WEBCT account. Generally my latest total for
your grade will be available on the computer at the end of each class period.
Course Description: Intermediate macroeconomics is a social science that focuses on the
fundamental determinants of output, employment, prices and interest rates. As an extension of
the foundation built in Principles of macroeconomics, critical economic factors and issues such
as technology, the labor force, the capital stock and government policies are investigated.
Students gain an understanding of the competing economic analyses explaining macroeconomic
problems and the variety of possible alternatives for fiscal, monetary, investment, and labor force
policies. Intermediate macroeconomics deals with topics involving the functioning, performance,
and control over the overall economy. Put yourself in the driver’s seat, pretend that you are the
President of the United States, and run the economy. Prerequisite: EC 1000 or EC 1050 (or
equivalent), EC 1100 or EC 1150 (or equivalent), introductory statistics.
Learning Objectives: The most important skill in a job with any organization is
communication. This course is designed to give you practice in using these communication
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skills: (1) speaking, (2) writing, (3) solving economic problems, (4) reading the newspaper, (5)
discussing major economic developments, and (6) using computers (EXCEL and the WEB) to
analyze data. After completing this course the student should be able to:
1. Use the appropriate terminology to describe the performance of the economy.
2. Explain the interrelationships among the important macroeconomic variables that measure
the economy.
3. Identify the conditions which underlie inflation and unemployment, forecast how these
measures will change, and recognize the policy tradeoffs in choosing between these two
economic measures.
4. Show how changes in the money stock, interest rates, exchange rates, and international
interest rates affect the economy both in the short-run and the long-run.
5. Show how changes in government spending and taxes affect the economy in both the shortrun and the long-run.
6. Discuss the major schools of thought in macroeconomics.
7. Research different macroeconomic problems and identify different sets of policy solutions
based on different prevailing schools of thought.
8. Explain the measures of economic growth, the factors underlying economic growth and the
role of government policy in affecting growth.
9. Be able to use the computer to make forecasts of important economic variables and to use
macroeconomic models to gauge impacts of policy..
Course Requirements: Think of the teacher as a coach. Think of yourself as being on a
team. In order to win you must learn what you don't know. Once you can tell the coach
what you don't know, he can help you learn the few tricks he knows. For the rest, you must
be resourceful, creative, and willing to share with others what you have learned. In class we
will share and learn together.
Class Discussion:
Bring the Wall Street Journal to class. You are expected to discuss major issues that are
presented in the media and to explicate macroeconomic concepts based on the chapters
assigned for the week or in previous weeks. Oral quizzes over the readings will
frequently be made in class. Such oral quizzes are generally voluntary and will be
awarded with points. Particularly good insights and use of economic concepts introduced
in discussion may also be awarded with points. The best preparation for these oral
quizzes and discussion is to read the website materials that are assigned and to keep
current with the media. To receive an “A”: in the class you need to make points through
other sources besides tests and homework assignments.
Individual Written Analysis:
The exams will allow you to show your ability to think clearly under a time constraint.
The exam questions will come from the homework problems, quizzes and media
assignments. If we decide to do exams online you must do your exam alone.
Homework. The homework will test your ability to get data, to process it, to use it in the
analysis of fundamental macroeconomic relationships and to analyze policy given the
models we have been using in class.
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Course Requirements and Grading: Think of the teacher as a coach. Think of
yourself as being on a team. In order to win you must learn what you don't know. Once you
can tell the coach what you don't know, he can help you learn the few tricks he knows. For
the rest, you must be resourceful, creative, and willing to share with others what you have
learned. In class we will share and learn together. For these reasons, grades are based on
the following:
1)
Class Quizzes and participation (200+ points). We will have in-class,
unannounced questions and quizzes in preparation for each exam. Make sure you
make some points from these questions and quizzes in order to get an “A” The best
preparation for these questions and quizzes is to read the textbook chapters that are
assigned and to practice the material presented- particularly computer applications.
2)
HOMEWORK (100 points each 300 points total): Two homework exercises
collecting data from the internet will be assigned (check cte.rockhurst.edu/tanseym at
Ec 3000).
3)
EXAMS (600 points): There are three exams. The first two are worth 150 points
each. The final is worth 300 points. Each exam is based on quizzes, the textbook,
problem solving examples presented in class, and handouts distributed from time to time
in class. Exams and the final are open book. If we don’t have online exams BRING A
CALCULATOR!!!!!!!!! (Mine are all broken).
Summary Class
ParticipaTion,Quizzes
Percentag 200 points +
e
Homework
Exam I
Exam II
Final Exam
300
points 150
points 150 points 300
points
maximum
maximum
maximum
maximum
GRADES: The following grades will be matched to point totals for students: A=900
points+, B=800 points+, C=700 points+, D=600 points+ & F is below 600 points. "+" and
"-" are used for borderline cases. It is not possible to get an “A” or a “B” without
adequate class participation. These limits may be adjusted downward but will not be
adjusted upward. In other words, you may be able to make a better grade for a given
numerical score, but you will not make a worse grade.
Policies
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
Turning In Assignments And Other Communications: The assignments must
be turned in through my email address. Please follow the following instructions in
sending me this information:
FOR THE PURPOSES OF DEVELOPING A PORTFOLIO TO WHICH YOU WILL
HAVE ACCESS AT THE END OF THE COURSE, PLEASE SUBMIT YOUR
ASSIGNMENTS AS FOLLOWS:
 Please name the subject line any e-mail with your included assignment or with any
communications on the assignments as "MAK12sLastnameASSNi". Where "Lastname"
should be replaced with your last name. Where "i" should be replaced with the number
of the assignment that is being turned in. My e-mails are grouped by subject and without
that name your email will not be found.
 Please also name the files you send as "MAK12sLastnameASSNi"
 If you are allowed to resubmit an assignment then label it as
"MAK12sLastnameASSNiresubmitj" where “i” is the assignment and “j” indicates the
number of resubmission. If you do not include “resubmit” at the end of your title and file
name it will simply out the previous assignment without being graded AND WILL
APPEAR TO BE LATE BECAUSE OF THE LATER DATE ON THE RESUBMITTED
FILE
 Always name BOTH the subject line of your e-mail AND the file with
the same name.
By following these instructions carefully I will be able to preserve the files you send me in a
portfolio which will help me to write a recommendation for you anytime in the future. It
will also allow you in the future to request copies from me of what you have done in the
class. Failure to follow the above instructions means an assignment will not be counted.
All assignments should be sent to me through the e-mail system . My E-mail
address (michael.tansey@rockhurst.edu) make sure the SUBJECT
LINE of the e-mail bears the title “MAK12slastnameWhateversubject” with
whatever subject after your “lastname”. Otherwise, I can’t be responsible for
finding the message.


You will need send your assignments in Microsoft Word , Microsoft Power Point,
and/or Microsoft Excel. Any other program is unacceptable and will result in
zero credit for the assignment.
Make-up exams. Since exams are cumulative, missing an exam will be made up by taking the
average percentage you receive of the following exam AND the final for the section covered in
the first exam (watch out! The drop date for the course occurs before the 2nd exam!). If the final
is missed, an average percentage based on the two previous exams will be applied to the
maximum point total on the final exam. Absence from any exam is only through prearranged
permission of the course instructor. In no case can you pass the course without taking two of
the three exams.
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
ON-Time Assignments. DUE BY THE BEGINNING OF CLASS: NO EXCEPTIONS
(HOMEWORK CAN BE TURNED IN EARLIER: up to 50% OFF IF LATER). Do not use
class time to finish assignments! The deadlines for some assignments may be extended
beyond what is shown in the syllabus, but such extensions will be announced before the
deadline shown in this syllabus and can be done only with permission of the professor. Inclass questions and quizzes may not be made up, emphasizing the importance of regular
attendance.

Individual Effort. Exams, finals, homework, questions and quizzes will not be team efforts;
they must be done alone.

Attendance: It is required that students attend classes regularly and be on time for the class.
However, if a student expects to miss class, the permission of the instructor is required in
advance to receive an excused absence, and the instructor may ask for additional work to be
performed to make up the class. The instructor will lower one grade for each unexcused
absence above 4 absences. Unless a student drops out, Six unexcused absences or more will
result in an “F” for the course. Students are responsible for keeping track of their attendance.
ADA Statement

RU official policy: “Rockhurst University is committed to providing reasonable
accommodations for students with disabilities. Please contact Sandy Waddell,
Director, Access Office (Massman Hall Room 7, (816) 501-4689,
sandy.waddell@rockhurst.edu) to provide documentation and request
accommodations. If accommodations have already been approved by the Access
Office, please communicate with the instructor of this course regarding these
arrangements by the second week of class in order to coordinate receipt of services.”
Student Contact Information:

RU official policy: “Student contact information must be kept current in order to
receive important notices from Rockhurst University. Your contact information is
online via your RockWeb account. Please check your local address, local phone
number, and emergency contact information on RockWeb and revise as needed. All
important University notices will be sent only to your RU email address. Please
check your RU email account in addition to any other email accounts you may have.
Accounts are activated at the Computer Services Help Desk (Conway 413).”
Academic Honesty Policy:

Plagiarism and cheating will not be tolerated. The Rockhurst University Catalog
provides examples of academic dishonesty and outlines the procedures, penalties, and
due process accorded students involved in academic dishonesty. All infractions will
be immediately referred to the Dean's office. In your research paper, make sure you
provide citations for all ideas and information that are not your own. In your
homework, make sure you provide citations for all ideas and information that
are not your own. Data from the internet must include the complete URL from
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which the data came so that I can verify the data. In addition the date and time
at which you collected the data must be submitted.
Crisis Management

The Crisis Management Team for Rockhurst University, out of a concern for the
safety and welfare of all community members, urges you to familiarize yourself with
Campus Emergency Procedures as well as emergency, evacuation, and shelter
signage located within and outside of buildings across campus. They also request that
you sign up for Rock@lerts, the University’s emergency communications system.
All community members must comply with University staff instructions during
regularly scheduled fire/tornado drills as well as actual emergencies. Information
regarding the above resources can be found at www.rockhurst.edu/emergency.
Copies of The Wall Street Journal will be available in the lobbies of Conway and Massman Hall. You
will be receiving information about your online subscription to WSJ via your Rockhurst email
account. Please check your email for the registration information from WSJ/Dow Jones.
Please check to make sure your main mailing address in RockWeb is correct. Your Business Week
will be sent to that address. Changes to your address can be made by going to:
http://www.businessweek.com/service.htm. You can also contact our Education Support Team at
bwkedusupport@cdsfulfillment.com or 1-800-843-7352.
DATE
ORIGINAL SYLLABUS
TEXT,Exercises CLASS EVENTS
SUBJECT
Jan 19 Th The Meltdown
Reading: Data
Sources, and
MacroIndicators
Jan 24 Tu Models and National
Income Accounting.
Key GDP data
Census:http://www.census.gov
/
Bureau of Labor Statistics:
http://www.bls.gov/
Bureau of Economic
Analysis: http://www.bea.gov/
Federal Reserve Bank:
http://federalreserve.gov/
Jan 26 Th how to do homework #1:
Data Sources. Computing
Reading:
Regression.
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percentage changes. Finding
relationships.
Jan 31 Tu The Keynesian Model,
Expenditure, Income, and
Equilibrium
Reading: The
Multiplier
Feb 2Th Stability, Changing
Equilibrium
Feb 7 Tu Investment demand,
Consumption Function,
Multiplier
POWERPOINT Assignment #1 due.
LECTURE
Feb 9 Th Injections, Leakages,
Models, Balances
Reading:
Aggregate D& S
Feb 14 Tu Policy tradeoffs, Keynesian Reading:
Weakness
Tradeoffs
Feb 16 Th Aggregate Demand and
Supply
Reading: PPT agg
d and s
, Agg D and S
exercise
Feb 21 Tu Law of One Price. Price and Law of one price
Output Controls,
lecture
Feb 23 Th Fisher, Purchasing Power Reading:
Parity, Inflation, Exchange Chapter 13
Rates
Examples of price
controlsEXCEL
exercise
Feb 28 Tu EXAM 1.
Example of Exam Exam 1
1
Mar 1 Th Deficits and Debt. How to
Thurs
do homework #2
Reading: Deficits
and Debt
Mar 3-11 Spring Break
Mar 13
Tu
Money
Mar 15
Banking
Reading: .
8
Th
COBWEB MODEL
Mar 20
Tu
The money multiplier
chapter 8.
AND
money exercise
Mar 22
Th
The Fed
Mar 27
Tu
Monetary Policy
Mar 29
Th
Liquidity Trap & Crowding comparing the
Out
indicators
assignment #2 due
Ap 3 Tu The Quantity Theory of
Money
stability
Ap 5 Th
Ap 10 Tu IS/LM and the integration of
Keynesian and Classical
Economics
Ap 12 Th Fiscal, monetary, supplyside
EXAM #2
Policies – integrated
modelling
Ap 17 Tu Growth Theory
Chang and the change of the
change
Ap 19 Th Growth Dynamics
Ap 24 Tu The Phillips Curve
Ap 26 Th Policy
May 1 Tu Review
May 8 Tu FINAL EXAM: Tues May Example of Final
8, 10:30am – 12:30 pm
last year
Assignment #3 due:
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APPENDIX I EXCEL INSTRUCTIONS
1. Turn on the computer by pushing on the lower button at the center of the panel with
the crossed-zero marking. You may also need to push the button to turn on the monitor
(TV screen). The computer should respond with a screen with many different “moniker”
symbols on the left hand side.
2. Use the mouse at the right side of the computer to move the arrow on the screen onto
the little box above the EXCEL moniker. Then quickly push (“click”) the left hand side
button on the mouse.
3.
The computer responds by giving you a blank worksheet.
4.
Put your flash drive into the slot USB port on the computer.
5. At the top left corner of your screen click "file".
Click “OPEN” in the new menu. In the “OPEN” menu that is presented, there is a little
“Look in” box. Hit the black arrow at the side of the box and click on the location in
which you want to store your work.
6. Check to make sure the green "num lock" light is on. If not, hit the Num lock button
until it is.
7. Click on the first cell in the worksheet to enter your first item of data. After entering
it, hit the "Enter" key.
8.
When you have entered the data, then save the data. This is done by:



Click the word, File, at the top left hand corner of your screen.
When the menu comes down, double click "save as".
Indicate the drive on which information is to be stored..
Note: The computer tacks on "xls" to indicate that it is an EXCEL file. You will be
able to access that file anytime in the future when Excel is on and
you have your diskette in the computer. Watch out! Make sure
you remember where you have stored the information.
9.
To print your result, go back to the upper left "File" column on your
screen and:
Click the word, "File".
10. From the resulting menu
Click "Print".
A Print menu comes up. Click "OK" at the bottom of that menu. Your results
should come out at the printer.
11. REGRESSION ANALYSIS. If you use regression analysis… At the top of the
screen;
Click "Data"
Under the Data menu
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Click "DATA ANALYSIS"
NOTE: There may be no such words on the menu.
In that case you will have to load the data analysis package.
To do this
Click “ADD-INS”
Click the empty box next to “Analysis ToolPak” so that an “X”
appears in the empty box.
Click “OK” and wait a few seconds.
Now when you click the TOOLS word you will see the “DATA
ANALYSIS” package at the bottom of the menu. Now click it.
Under the DATA ANALYSIS menu, you’ll see two arrows, one pointing upward
and one point downward. Click just above the downward pointing arrow until
you see “Regression.”
Click “Regression”

It is important to place an “x” or check mark in the “Residuals”, “Standardized
Residuals”, and Line Fit Plots boxes about half way down the resulting menu.

Click the “OK” button at the top right of the Regression menu. The regression
will run and the results will appear on the screen after several hiccoughs.
12. ARRANGING GRAPHS. Suppose you have created graphs of your data and you
need to move them. You do this by clicking on the border of diagram until little
black boxes appear at the corners and middle of the borders of the diagrams.





At the bottom right of your screen are two little black arrows that
point horizontally in opposite directions. By clicking between the
two arrows you can move horizontally anywhere on your
spreadsheet to get a better view of the graphs your program has
drawn for you to show the relationship between the actual data and
what your model predicts.
At the far right of your screen are two little black arrows that point
vertically in opposite directions. By clicking between the two
arrows you can move vertically anywhere on your spreadsheet to
get a better view of the graphs your program has drawn for you to
show the relationship between the actual data and what your model
predicts.
On the upper left (or lower right) corner of each graph to increase
the size of the graph (or make it smaller if you push it toward the
lower right)
On the middle of the lower or upper border (find the precise little
black box to click on) of the graph to change the vertical position of
the graphs.
On the middle of the left-hand or right hand borders (find the
precise little black box to click on) of the graph to change the
horizontal position of the graphs.
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15.
To print your result, go back to the upper left "File" column on your screen and:
Click the word, "File".
From the resulting menu
Click "Print".
A Print menu comes up.
Click "OK" at the bottom of that menu.
Your results should come out at the printer.
16.
Make sure you get a printout of your original data which is on sheet #1. If you
don’t have such a printout, click “Sheet1” at the bottom right of your spreadsheet.
Your data should appear instantly on the screen. Now repeat step #10. Your
regression cannot be evaluated without this printout.
17.
If worst comes to worst you can always turn off the computer.