PRINCIPLES OF MACROECONOMICS
ECON 102, SECTION 4, SPRING 2011
MWF: 2:10 – 3 pm, COOVER 2245
Instructor: Dr. Sunanda Roy
Office: Heady 483,
Office phone: 294-4197
Office hours: MW 12 noon – 1 pm or
by appointment
Email: sunanda@iastate.edu
Head TA: Qiqi Wang
Office: Heady 75
Office hours MW, 9:30 – 10:30 am
or by appointment
Email: chichi@iastate.edu
TAs for this course: Mark Senia, Qiqi Wang, Xiaohong Zhu, Youngun Kim
Office hours for TAs:
Class website
A copy of this syllabus, lecture slides and occasionally, other class material will be
posted at http://www.econ.iastate.edu/~sunanda/Econ%20102.htm
For homework assignments, we shall be using an online tutorial system called Aplia.
Details of Aplia and how to register for it are provided below.
Required text
Principles of Macroeconomics by N. G. Mankiw, 5th edition is the required text.
Other required material
You need to register for an online tutorial system called Aplia. Instructions on how to
register for Aplia are posted on the class website in the document titled “Student
Registration and Payment Instruction for Aplia”. Use the Course Key QWNR –
968Z – QMPY to get registered.
All homework assignments/experiments are to be completed online through Aplia. As
there is a registration fee for Aplia and the text is also required reading, please understand
the cost implication for taking this course. Please also note that you have the following
four options to choose from. I am fine with any of them. Choose the one that best suits
your financial situation and fits your needs.
Available options with prices:
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1. You can buy the digital text plus Aplia access for this course from the Aplia website
for $90.00 for the semester. Follow the Aplia Registration instructions if you choose this
option.
2. You can buy the standalone Aplia Integrated Textbook Solution Access Card which
also includes the digital text from the Bookstore. Please check the Bookstore for the
actual price. The ISBN, to be presented at the Bookstore for this option is
9780324420975. Buy the Card from the Bookstore and follow the Aplia Registration
instructions.
3. You can additionally buy a hardcopy text from the Aplia website or the bookstore.
Please check these two places for details. Also please note that the course does not
require you to buy an additional hard copy of the text.
Course Content
This is an introductory course in economics. Compared to Physics, Chemistry or Biology,
Economics is a relatively young science. Yet within this short time it has become very
specialized. There is a lot of common ground among all these specialized areas. Most
economists have a common way of looking at the world and some common ways of
analyzing it. In other words, they have in common, a set of broad ideas about how an
economy functions and a set of basic analytical tools and concepts, which they use to
express and explore these ideas. We are going to study some of these ideas and tools in
this course – with special emphasis on those ideas and tools which are useful for
describing and analyzing the economy as a whole - the macro-economy, in other words.
We shall begin by discussing the benefits from trade and specialization. We shall then see
how markets foster trade and specialization. We shall then discuss the aggregate
consequences – as measured by total output for the economy, unemployment, inflation
rate etc – of individual decisions within the context of free markets. A tentative list of
topics is provided below.
Learning macroeconomics is valuable not only because macroeconomics is practically
useful but also because the learning process helps you develop critical thinking ability.
The concepts and tools that you will pick up in this course will allow you to more
objectively critique competing viewpoints about social issues and public policy.
Homework assignments:
Weekly homework assignments will be posted on Aplia. These assignments are carefully
adapted to and synthesized with the required textbook readings. Aplia assignments are
graded automatically by computer elsewhere in the country, and late assignments will not
be graded – even if they are only one minute late. No exceptions. To account for
occasional internet problems, always plan to submit your assignments at least 24 hours in
advance.
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All technical difficulties with Aplia (such as, your “responses were not saved”) are
handled by the Aplia support staff. See their webpage for instructions on how to get help.
Two lowest problem set grades will be dropped to account for factors beyond your
control that may adversely affect your grades such as illness, family emergencies etc.
You can work on the assignments together. However, merely understanding how a
classmate arrived at a solution is not the same as figuring out the problem yourself. Not
until you struggle through a problem yourself will you truly begin to understand the
problem and be able to crack a similar one on the exam.
Math Requirements
Economics is a mathematical science. Since this is a very introductory course, no prior
knowledge of advanced mathematics is required or presumed. However we will be using
high school algebra (very simple equations) and geometry (graphs) frequently. Indeed,
knowledge of such basic math is necessary for most, perhaps all, introductory economics
courses that you may be taking at ISU. The first homework assignment on Aplia is a
math review. Use this to identify areas of weakness and take steps to shore them up.
Lecture Format:
Power Point lecture slides outlining individual chapters are posted on the class website.
The slides are meant to be only an outline of the week’s class discussion, to help you
focus on what is important in each chapter. They are not the complete material. In
particular, they are not a substitute for reading the book or attending lectures.
Exams and Grading Policy
All administrative questions about grades are handled by the Head TA. Contact me about
grades only if the Head TA is not able to resolve the problem to your satisfaction. For
questions about the course material, contact me anytime.
There will be three Midterms and one comprehensive Final Exam for this course. The
exams will be hardcopy based and administered in class. A tentative schedule for the
midterms is given below. The Final Exam will be held as per the University schedule.
Exam Schedule:
Midterm I: Feb 7, Mon
Midterm II: Mar 7, Mon
Midterm III: Apr 18, Mon
Final Exam: As per University schedule
Exam Syllabus
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The syllabus for each midterm will be announced in class. The syllabus for the Final is
cumulative but a greater weight will be placed on the material covered after Midterm III.
The questions on the Final Exam based on the material covered up to Midterm III will be
basic and easy for students who keep up with the course throughout the semester. All
exam questions will be of the multiple-choice type.
Grading Policy
The final grade will be determined based on the following individual component weights.
Grades will be curved.
Class performance
Homework, Experiments on Aplia
Best 2 out of 3 Midterms
Final Exam
10%
25%
40%
25%
Assessing class performance
Almost every lecture day, either at the beginning or at the end of the class, I shall give
you a short quiz of three or four questions, based on the material covered the previous
day. Turn it in at the end of the class. Your class performance grade will be based on
these.
Missed Exams
Only “excused absences” under University guidelines will be considered as valid
excuses for missing an exam. To know about these, talk to an advisor. No other excuses
will be accepted. The student must be prepared to substantiate his/her excuse for absence
with documents (such as a physician’s letter, note from a family member or an University
authority) and a make-up exam will be accordingly arranged for him/her under the
circumstances. Unexcused absences will be graded zero.
Special Assistance
Any student who has a physical or mental disability that substantially limits his/her
ability to perform in this course under normal circumstances should obtain a Student
Academic Accommodation Request (SAAR) form from the Disability Resources (DR)
office (515-294-6624). DR is located on the main floor of the Student Services Building, Room
1076. Request must be received and approved (including instructor approval) at least one
week before the necessary accommodation. All relevant information will be kept strictly
confidential.
Academic help for the course
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Please note my and the TAs’ office hours. You can see either of us by appointment, if
these times don’t suit you. If you need additional help with this course, the Economics
Help Room is located in 180 Heady Hall, phone 294-0839 and is available to all Econ
102 students. Please check out the details using the link on the departmental homepage
under Undergraduate Economics program, Current Students. Be sure to fill up the short
TA evaluation form for the Help Room TAs.
Attendance policy
I expect you to attend class on a regular basis, although there is no explicit grade for
attendance only. Exams are always imperfect instruments for evaluating a student’s grasp
of the material. For students with identical exam scores, I assume that those who attend
class are generally more knowledgeable than those who routinely skip class. Therefore,
students who end up “on the bubble” between two grades at the end of the semester are
more likely to be bumped up to the higher grade if they attended class. Your class
attendance will be recorded through the daily quizzes.
Classroom etiquette
I’d like to provide an excellent learning environment for everyone. This can be ensured if
everybody observes certain basic ground rules. Although I am a very nice person and will
not jump on you at every opportunity, if you consistently violate these, I shall find out
who you are and penalize your grade. Here are the basic ground rules:
• Please do not start whispering or gathering up your materials before the lecture is
completely over. It is very distracting. I shall stare at you and that will delay the end of
the lecture.
• If you are attending the lecture, plan on being there for the entire duration of the class.
If you absolutely must leave early for a good reason, on any given day, please send me a
prior email, sit near the door and leave quietly.
• Do not use laptops or other electronic devices for anything during class time except to
take notes. I have ways of finding out, even if you are sitting at the back.
• Conversations between students in lecture halls are easier to hear than commonly
realized and very distracting. Please do not engage in one. If you have a question related
to the course, ask me instead – you will get a better answer compared to what your
neighbor will give you.
• Please do not read newspapers during lectures. It is often distracting to those around
you (and me), even if you’re being quiet. The best time to get knowledgeable about
current events is outside class hours.
• Food or drink within reason is OK so long as you are not obviously distracting others.
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• It’s always fine and even welcome to interrupt with questions related to the material
being covered.
Welcome to Econ 102! Have an intellectually stimulating and productive Spring
semester!
Tentative Course and lecture plan
For a detailed assignment schedule go to the Aplia website for this class. The following
is a tentative list of topics we will cover.
1. Interdependence and gains from trade, Chap 3
2. The market forces of demand and supply, Chap4
3. National Income Accounts, Chap 10
4. Measuring cost of living, Chap 11
5. Production and Growth, Chap 12
6. The financial system, Chap 13
7. Unemployment and its natural rate, Chap 15
8. The Monetary System, Chap 16
9. Money growth and inflation, Chap17
10. Open Economy Macroeconomics, basic concepts, Chap 18 (time permitting)
Disclaimer:
I am not financially affiliated with Aplia and receive no monetary benefit from requiring
this software for the course.
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