Principles of Macroeconomics
Economics 2105.2 – Fall 2015
Prof. J. J. Arias
Course Overview & Objectives
Why are some countries rich while others are poor? What causes inflation and employment, and
why do they differ across countries? Why do we experience recessions? Addressing questions
like these is the object of macroeconomics, which is the study of an entire national economy. The
overall course objective is to help you develop the economic way of thinking, especially when
evaluating news and policy proposals related to the macro-economy. More specifically, my hope is
that you will have a basic understanding of the pervasive role of scarcity and incentives; the role
of prices and interest rates in allocating resources; and the causes of economic growth,
employment and inflation.
Pre-requisite
A working knowledge of high-school algebra
Class Time & Location
Tuesday & Thursday 11:00 am – 12:15 pm, Atkinson Hall 208
Supplemental Instructor
Klaire Fisher
klaire.fisher@bobcats.gcsu.edu
Required Textbooks
Modern Principles of Macroeconomics by Cowan and Tabarrok, 3rd edition
The Armchair Economist (Revised and Updated) by Steven E. Landsburg
Additional video resources are www.learnliberty.org and www.khanacademy.org.
Office Hours
Tuesday & Thursday, 12:15 — 1:45 pm and by appointment
Office: 421 Atkinson Hall
Phone: 445-2085
Website: jjarias.gcsu.edu/
E-mail Questions
You are responsible for knowing information presented in the syllabus and in class. I will usually
not reply to e-mails that ask about information that is on the syllabus or announced in class.
Cell Phone and Laptop Policy
Please turn off or silence cell phones before class and do not text-message during class. Multitasking is a myth! It also diminishes the brain’s capacity to concentrate. I reserve the right to
require turning in cell phones at the beginning of class. I do not allow headphones in class. You
must sign a form and receive permission from me to use a laptop in class.
LaunchPad
LaunchPad is the on-line platform for this class. The cost of access to the website includes the
Cowan and Tabarrok e-book. (See the end of the syllabus for more details.)
Course Grade
Homework – 20%
Exam I – 25%
Exam II – 25%
Final Exam (cumulative) – 30%
I offer the possibility of the ‘Italian knockout’ for the final exam (i.e. the final exam grade can
count for your entire exam average). The fact that you are a graduating senior, need to stay on
Hope, need to regain Hope, work twenty hours a week, et cetera has no impact on your grade.
Please do not call or email me with questions about your final course grade. University policy
prohibits me from revealing grades via phone or email. If you ask me for a higher grade after the
final exam you will receive the following reply: “You had 16 weeks to determine your grade. The
semester is now over, and you no longer have any opportunities to do so.”
Homework
The homework will primarily consist of a series of on-line assignments that will require access
to the LaunchPad website. Each chapter will have a Learning Curve and Graded Homework
assignment. I will drop your lowest two scores. The first two assignments are due Tuesday,
August 25 at 11:00 am. There will also be some FlipIt assignments. Details to follow.
Academic Dishonesty
Students are expected to know and abide by the university honor code, available at
http://www.gcsu.edu/studentlife/handbook/code.htm. The minimum penalty for academic
dishonesty is a zero on the assignment or exam, which usually results in an F in the course.
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Attendance and Classroom Policy
I do not usually take attendance. However, attendance is still important since it will affect your
performance on exams. A good set of lecture notes is essential to do well. The best way to study
for exams is to attend class, listen carefully and take notes on what I say as well as what I write on
the board. I may lock the doors after class begins to discourage late arrivals. Students may be
penalized through a demerit system for the following:
 walking in front of the class during lecture
 excessive text messaging or ringing cell phone
 leaving class early without prior permission
 excessive tardiness
 excessive talking and other disruptive activity
Exam Policies
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There are no make-up exams. If you miss an exam due to a University approved absence,
then the weight of the exam will be transferred to the final exam. For example, if a student is
excused from one of the exams, the final will be worth 55% instead of 30%.
No calculators will be allowed in any of the exams.
Exam material will come from the lectures, readings, videos and podcasts. The typical exam
will have multiple-choice, true/false and graphical problems.
Everyone will need a half-page scantron (Form No. 19641) and a number two pencil (with a
good eraser) for each exam. I do not bring extra scantrons to class. A student will receive a
zero unless and until they use the correct scantron and a number 2 pencil.
If you are a student that desires special arrangements for exams due to a disability, please
come and see me as soon as possible before the first exam. An official letter from Georgia
College is required to receive any accommodations.
Final Exam Conflict: If you have three exams in one day, and this class is the lowest level class
of the three, and you give me two weeks’ notice, then you may request to change the time of
the exam.
Suggestions and Resources
1. Attend class, listen carefully and take good notes.
2. Read the assigned chapters, especially the graphs, before class.
3. Review and rewrite, annotate or outline your notes soon after lecture.
4. Mark any questions you have about your lecture notes or readings, and see me for answers.
5. Outline the assigned chapters in Cowan/Tabarrok.
6. Practice drawing and manipulating important graphs from memory.
7. Ask questions!
8. Try your best on all of the homework.
9. Do the end-of-chapter questions in the textbook.
10. Follow the study tips found at http://lsc.cornell.edu/Study_Tips_by_Discipline/Econtips.pdf.
11. Study with others, especially those who are doing well in the class.
12. Go to the Learning Center for free tutoring.
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Reading List (L refers to the Landsburg text, and CT refers to the Cowan/Tabarrok text. Readings
in italics are available on LaunchPad.)
1. Why does mandating seat belts and airbags lead to more accidents?
CT1; L1; L2; Scarcity, the Buddhist Monk and Les Miserables
2. How did the 1980s arms race contribute to the collapse of the Soviet Union?
CT2
3. Why do we trade with each other?
CT2
4. Why is no one smart enough to know the best price for a cheeseburger?
CT3; CT4; L8; L17
5. How does price gouging benefit the victims of natural disasters?
CT4
6. Why is physical destruction bad for the economy?
CT6; L5; Destruction in a Robinson Crusoe Economy; The Broken Window Fallacy
Exam I – Tuesday, September 22
7. Why are some countries rich and others poor?
CT7; Be Fruitful and Multiply
8. What is the key to sustained economic growth?
CT pp157-164; Romer on Growth (podcast)
9. Why is saving—not spending—crucial for economic success?
CT9; How Government Stoked the Mania
10. How did Social Security slow economic growth?
CT9
11. Why is paying someone to manage your mutual fund a waste of resources?
CT10; L19; Present and Future Value
12. How do technology improvements lead to more employment?
13. How do the minimum wage, unions and unemployment insurance cause unemployment?
CT11; L13; Ignoring Economics
Exam II – Tuesday, November 3
14. How do banks create money?
CT15
15. How does the Federal Reserve change the money supply?
CT15
16. How do central banks and governments cause inflation?
CT12; (pp. 73-83 in L7)
17. Why does the trade deficit indicate that the U.S. is a popular place to invest?
CT20
18. What determines exchange rates in the long run?
CT20
19. Why did people spend so little of their government ‘stimulus’ checks?
Don’t Jump the Gun on Stimulus Plans; Why the Stimulus Shouldn’t Stimulate You
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20. Why is government spending the fundamental problem and not government borrowing?
L11; Keeping Up with the Joneses; Why the Debt is Still a Big Deal; (CT 17)
Cumulative Final Exam – Tuesday, December 8, 10:30 am – 12:45 pm
*Exam topics, readings and dates may be subject to change. If for any reason the university
cancels classes on an exam date, the exam will be given the following class period.
Common Class Policies
The other standard class policies are available at the following links:
http://economics.gcsu.edu/general%20syllabus%20statements.htm;
http://www.gcsu.edu/registrar/syllabus.htm
How to access your LaunchPad course
Follow these steps to get started. If you need additional guidance, consult the student Quick Start guide, especially
the system requirements which list recommended browsers.
1. Go to http://www.macmillanhighered.com/launchpad/cowentabarrokmacro3e/1900463
2. Bookmark the page to make it easy to return to.
3. Enroll in our course using one of the following options:
a. If you have an access code, select “I have a student access code,” enter the code exactly as it appears on
the card, and click Submit.
b. If you don’t have an access code, either purchase a text package that includes one OR click “I want to
purchase access” and follow the instructions.
c. If you need to start working but can’t purchase right away, select “I want temporary access” and follow
the instructions.
If you have problems registering, purchasing, or logging in, please contact Customer Support. You can
reach a representative 24 hours a day, 7 days a week:
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through the online form
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by chat
Or from 9 a.m. to 3 a.m. EST, 7 days a week:
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by phone at (800) 936-6899
by phone at (800) 936-6899
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