San José State University
Department of Economics
Econ102—Macroeconomic Analysis
Course No. 27291, Spring 2016
Instructor:
Jeffrey Rogers Hummel
Office Location:
DMH 144
Telephone:
Campus office, (408) 924-5418; Home office, (925) 926-0807
Email:
Jeffrey.Hummel@sjsu.edu
Office Hours:
Tuesday, 1:00-2:30 P.M.; Thursday, 12:00-1:30 P.M.; and by
appointment
Class Days/Time:
Tuesday and Thursday, 3:00-4:15 P.M.
Classroom:
DMH 166
Prerequisites:
Economics 1A
Course Description
Theory of aggregate demand and related topics: national income accounting, employment
and inflation, monetary and fiscal policies, economic stability, growth, and balance of
payments equilibrium.
Announcement
This is now a four-unit course. You are expected to complete an average of 12 hours of
work per week inclusive of lectures, assignments, and activities. This syllabus contains
learning objectives, class meeting times, and assignments commensurate with the
expectation of 12 hours of work per week across 15 weeks in a semester. For reference,
under a traditional three-unit course, you were expected to complete 9 hours of work per
week inclusive.
Description of changes
The new, 4-unit Econ 102 has been modified to include more material. This extra
material is incorporated into an expanded Econ 102 Course Reader (described and listed
below under “Required Texts/Readings”), with a writing assignment for each reading
assignment. The reading and writing will require an estimated 40 hours of additional
outside activity over the entire semester. This expected time is based on average reading
and writing skills. This requirement means that the new 4-unit Econ 102 course now
supports achievement of the Department’s Program Learning Objective number 5:
Communication.
Econ 102, Spring 2016
Page 1 of 8
Course Learning Outcomes and Program Learning Objectives
This is a course in intermediate macroeconomics. Using models of the economy overall,
it emphasizes the interrelationships among economic variables and the impact of public
policy on those variables. By the end of the course, the student should have a good grasp
of what we know and what we do not know about economic growth, sustained inflation,
and the business cycle. Although this course touches on the full range of Economics
PLOs, it emphasizes PLO2.
PL0 2. Macroeconomics: Apply tools from Intermediate Macroeconomics to modeling
the economy overall and explaining the interrelationships among economic variables and
discussing the impact of public policy on the economy.
PLO 5: Communication: Demonstrate efficient communication skills.
Upon successful completion of this course, students should be able to demonstrate the
following:
CLO 1. Explain the relationship between economics and public policy, as illuminated by
public-choice theory.
CLO 2. Identify the macroeconomic aggregates that measure the price level,
employment, and output and explain both their strengths and weaknesses.
CLO 3. Discuss what we know and what we do not know about economic growth.
CLO 4. Discuss what we know and what we do not know about sustained inflation.
CLO 5. Discuss what we know and what we do not know about the business cycle.
Required Texts/Readings
Textbooks
1. N. Gregory Mankiw, Macroeconomics, 7th edn. (New York: Worth, 2010); ISBN-13:
978-1429218870.
2. Todd G. Buchholz, New Ideas from Dead Economists: An Introduction to Modern
Economic Thought, rev. edn. (New York: Plume, 2007); ISBN-13: 978-0452288447.
Other Readings
Econ 102 Course Reader, available at Maple Press, 330 South 10th Street.
Dropping and Adding
Students are responsible for understanding the policies and procedures about add/drop,
grade forgiveness, etc. Refer to the current semester’s Catalog Policies section at
http://info.sjsu.edu/static/catalog/policies.html. Add/drop deadlines can be found on the
current academic calendar web page located at
http://www.sjsu.edu/academic_programs/calendars/academic_calendar/. The Late Drop
Policy is available at http://www.sjsu.edu/aars/policies/latedrops/policy/. Students should
be aware of the current deadlines and penalties for dropping classes. Information about
the latest changes and news is available at the Advising Hub at
http://www.sjsu.edu/advising/.
Econ 102, Spring 2016
Page 2 of 8
Assignments and Grading Policy
The final examination, which will be comprehensive, is worth 40 points out of the total of
100 for the course. Each of two other examinations is worth 20 points toward the total. In
addition, there will be twelve short, objective quizzes based exclusively on assigned
weekly readings worth another 20 points. Each quiz individually is worth 2.5 points,
allowing students to drop or miss four out of the twelve quizzes. There will be no makeups for any quizzes. Although I shouldn’t have to mention this, cheating on any quiz or
exam will result in an automatic F for the entire course.
In order to qualify for taking any quiz, students must write a brief summary of the
readings assigned for that quiz. These written summaries—at least 400 words long, neatly
typed, and written in standard English—must be submitted in two forms: through Canvas
online and a hard copy in class. Both must be submitted at the beginning of the class for
which the readings are assigned. Failure to turn in the writing assignment automatically
disqualifies a student from taking that quiz, earning zero points on it. Hand-written,
unintelligible, or late summaries are not acceptable.
The written summaries will not be scored but will be checked for acceptability. Written
summaries are unacceptable if (a) if they do not apply to the readings assigned: (b) if they
do not cover all the readings assigned for that day; (c) if they are less than 400 words; or
(d) if they are plagiarized from any source, whether from the readings themselves, from
some other written source, or from another student. An unacceptable written summary
will disqualify a student’s grade for that particular quiz, earning the student zero points,
irrespective of how many questions he or she may have answered correctly. If two or
more students turn in identical written summaries for the same assigned readings, the
quizzes of each of them will be disqualified. There will be absolutely no exceptions.
In addition, the written summaries should include an accurate and typed word count. If
they fail to do so, one-half point will be deducted from grade for the associated quiz.
Converting Number Grades to Letter Grades
97-100
93-96
90-92
87-89
A+
A
AB+
83-86
80-82
77-79
73-76
below 60
B
BC+
C
F
70-72
67-69
63-66
60-62
CD+
D
D-
(continued)
Econ 102, Spring 2016
Page 3 of 8
Converting Number Grades to Letter Grades (continued)
Also affecting final grades are the total number of quizzes students take. Although
allowed to drop four out of the twelve quizzes without penalty, students who do not turn
in written summaries and get a positive score (of at least one-half point) on a minimum of
four quizzes automatically fail the course, no matter how well they have done on their
exams. Below is listed the highest final grade that students can achieve depending on
how many written summaries with positive quiz scores they have completed.
only 3 written summaries and quizzes
only 4 written summaries and quizzes
only 5 written summaries and quizzes
only 6 written summaries and quizzes
7 or more written summaries and quizzes
highest possible grade: F
highest possible grade: D+
highest possible grade: C+
highest possible grade: B+
highest possible grade: A+
Classroom Protocol
This is a traditional, lecture-based course. I therefore encourage students to record the
lectures if they believe doing so will help their studying. But any use of laptops, tablets,
or other electronic device for typing notes is prohibited in class. Studies have proven that
students who take notes on these devices significantly impair their comprehension of the
material. So students need to come prepared to take hand-written notes. Those who
violate this prohibition will have a half point deducted from their final grade for the
course (out of 100 points) for each and every infraction.
Because class participation helps enliven the course, it is greatly appreciated and can earn
students up to one extra point toward their final grade. Class attendance is not mandatory
and will not directly affect a student’s grade. My experience, however, is that students
who miss several classes, in addition to dropping quizzes, consign themselves to doing
extremely poorly on their exams (unless they are truly exceptional). I therefore strongly
encourage students to attend fully every class.
Finally, if you experience any difficulty in this course, please do not hesitate to come to
me for help. I am available not only during office hours but also by phone, and I am
always happy to clarify hard concepts, resolve any lingering confusion, or otherwise
assist you in making this course enjoyable and rewarding.
Econ 102, Spring 2016
Page 4 of 8
University Policies
Academic integrity
Your commitment as a student to learning is evidenced by your enrollment at San Jose
State University. The University’s Academic Integrity policy, located at
http://www.sjsu.edu/senate/S07-2.htm, requires you to be honest in all your academic
course work. Faculty members are required to report all infractions to the office of
Student Conduct and Ethical Development. The Student Conduct and Ethical
Development website is available at http://www.sa.sjsu.edu/judicial_affairs/index.html.
Instances of academic dishonesty will not be tolerated. Cheating on exams or plagiarism
(presenting the work of another as your own, or the use of another person’s ideas without
giving proper credit) will result in a failing grade and sanctions by the University. For
this class, all assignments are to be completed by the individual student unless otherwise
specified. If you would like to include your assignment or any material you have
submitted, or plan to submit for another class, please note that SJSU’s Academic Policy
S07-2 requires approval of instructors.
Campus Policy in Compliance with the American Disabilities Act
If you need course adaptations or accommodations because of a disability, or if you need
to make special arrangements in case the building must be evacuated, please make an
appointment with me as soon as possible, or see me during office hours. Presidential
Directive 97-03 at http://www.sjsu.edu/president/docs/directives/PD_1997-03.pdf
requires that students with disabilities requesting accommodations must register with the
Accessible Education Center (AEC) at http://www.sjsu.edu/aec to establish a record of
their disability.
In 2013, the Disability Resource Center changed its name to be known as the Accessible
Education Center, to incorporate a philosophy of accessible education for students with
disabilities. The new name change reflects the broad scope of attention and support to
SJSU students with disabilities and the University's continued advocacy and commitment
to increasing accessibility and inclusivity on campus.
Workload Expectations
Academic Policy S12-3 at http://www.sjsu.edu/senate/S12-3.htm has defined expected
student workload as follows: “Success in this course is based on the expectation that
students will spend, for each unit of credit, a minimum of forty-five hours over the length
of the course (normally 3 hours per unit per week with 1 of the hours used for lecture) for
instruction or preparation/ studying or course related activities including but not limited
to internships, labs, clinical practica. Other course structures will have equivalent
workload expectations as described in the syllabus.”
Econ 102, Spring 2016
Page 5 of 8
Econ 102—Macroeconomic Analysis
Spring 2015: Course Schedule
Week
Date
Topics, Readings, Assignments, Deadlines
1
Jan
28
2
Feb
4
Buchholz, preface, chs. 1-4.
3
Feb
11
Buchholz, chs. 5-8.
4
Feb
18
Buchholz, pp. 253-71 from ch. 11; Selection in the Course Reader
from David Friedman, Price Theory.
5
Feb
25
Mankiw, chs. 1, 2.
6
Mar
3
Mankiw, chs. 3, 6 (except pp. 56-8 on Cobb-Douglas).
7
Mar
10
first examination.
8
Mar
17
Mankiw, chs. 7, 8 (except the appendix).
9
Mar
24
Mankiw, chs. 4, 19 (except the appendix).
Mar
31
Spring break.
10
Apr
7
Buchholz, chs. 9-10.
11
Apr
14
Mankiw, ch. 9, 13 (except the appendix); Buchholz, pp. 271-82 from
ch. 11.
12
Apr
21
second examination.
13
Apr
28
Mankiw, pp. 415-16 and ch. 15 (except the appendix); Buchholz, ch.
12; Selection in the Course Reader from Tyler Cowen & Alex
Tabarrok, Modern Principles.
14
May
5
Mankiw, ch. 16; Selection in the Course Reader from Mankiw, 6th
edn., ch. 19.
15
May
12
Mankiw, ch. 5 (except the appendix), epilogue; Buchholz, ch. 13.
Final
Exam
May
23
DMH 166: 12:15 to 2:30 P.M. [Note: This is a Monday.]
NOTE: In addition to the above, the Reader contains copies of or links to
supplementary readings assigned for various weeks.
Econ 102, Spring 2016
Page 6 of 8
Course Units:
I.
Fundamentals of Public Policy.
II.
Measuring the Macroeconomy.
III.
Economic Growth.
IV.
Monetary Theory.
V.
VI.
VII.
Modeling the Macroeconomy.
The Business Cycle: Causes and Cures.
The International Economy.
For each unit, I will hand out an outline of my lecture and a list of important terms.
Optional Recommended Readings:
Introductory
Tyler Cowen and Alex Tabarrok, Modern Principles: Macroeconomics (New York:
Worth, 2009).
Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press,
1962).
Milton Friedman, Money Mischief: Episodes in Monetary History (New York:
Harcourt Brace Jovanovich, 1992).
Milton and Rose Friedman, Free to Choose: A Personal Statement (New York:
Harcourt Brace Jovanovich, 1980).
Henry Hazlitt, Economics in One Lesson: Fiftieth Anniversary Edition (San Francisco:
Laissez Faire, 1996).
David Henderson, ed., The Fortune Encyclopedia of Economics (New York: Warner
Books, 1993).
Paul Heyne, Peter J. Boettke, and David L. Prychitko, The Economic Way of Thinking,
10th edn. (Upper Saddle River, NJ: Prentice Hall, 2003). [Note: If you can find it, the 5th
edn. written exclusively by Heyne was the best, although more recent editions are still
useful.]
Roger LeRoy Miller and Daniel K. Benjamin, The Economics of Macro Issues, 5th
edn. (New York: Prentice Hall, 2011).
Murray Rothbard, What Has Government Done to Our Money, rev. edn. (Auburn, AL:
Ludwig von Mises Institute, 1990).
(continued)
Econ 102, Spring 2016
Page 7 of 8
Optional Recommended Readings (continued):
Advanced
Armen A. Alchian and William R. Allen, University Economics: Elements of Inquiry,
3rd edn. (Belmont, CA: Wadsworth, 1972).
Robert J. Barro, Macroeconomics, 5th edn. (Cambridge, MA: MIT Press, 1997).
James M. Buchanan and Richard E. Wagner, Democracy in Deficit: The Political
Legacy of Lord Keynes (New York: Academic Press, 1977)
R. H. Coase, The Firm, the Market, and the Law (Chicago: University of Chicago
Press, 1988).
David Friedman, The Machinery of Freedom: Guide to a Radical Capitalism, 2nd.
edn. (La Salle, IL: Open Court, 1989).
Milton Friedman and Anna Jacobson Schwartz, The Great Contraction, 1929-1933
(Princeton, NJ: Princeton University Press, 1965).
Roger W. Garrison, Time and Money: The Macroeconomics of Capital Structure
(London: Routledge, 2001).
Robert J. Gordon, ed., Milton Friedman's Monetary Framework: A Debate With His
Critics (Chicago: University of Chicago Press, 1974).
Friedrich A. Hayek, The Road to Serfdom (Chicago: University of Chicago Press,
1944).
John Maynard Keynes, The General Theory of Employment, Interest, and Money
(New York: Harcourt, Brace, 1936).
David E. W. Laidler, The Demand for Money: Theories, Evidence and Problems, 4th
edn. (New York: HarperCollins, 1993).
Steven E. Landsburg and Lauren J. Feinstone, Macroeconomics (New York:
McGraw-Hill, 1997).
J. Huston McCulloch, Money and Inflation: A Monetarist Approach, 2nd edn. (New
York: Academic Press, 1982).
Ludwig von Mises, Human Action: A Treatise on Economics, 3rd edn. (Chicago:
Henry Regnery, 1966).
Don Patinkin, Money, Interest, and Prices: An Integration of Monetary and Value
Theory, 2nd edn., abridged (Cambridge: MIT Press, 1989).
David Romer, Advanced Macroeconomics, 4th edn. (New York: McGraw-Hill, 2012).
Murray N. Rothbard, Man, Economy, and State: A Treatise on Economic Principles,
2v. (Princeton, NJ: Van Nostrand, 1962).
Murray N. Rothbard, Power and Market: Government and the Economy (Menlo Park,
CA: Institute for Humane Studies, 1970).
Brian Snowden and Howard R. Vane, Modern Macroeconomics: Its Origins,
Development and Current State (Cheltenham, UK: Edward Elgar, 2003).
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 2v.
(1776; reprint edn., Oxford: Clarendon Press, 1979).
Lawrence H. White, The Theory of Monetary Institutions (Oxford: Blackwell, 1999).
Econ 102, Spring 2016
Page 8 of 8