ECONOMICS 311
GENERAL INTRODUCTION
Fall 2012
MW 3:30-4:50 TCH LR3
TAs:
Robert J. Gordon, AAH 350
491-3616; rjg@northwestern.edu
web site: just google ARobert J. Gordon@
Office Hours, T 4-5:30 pm
Anand Krishnamurthy, akrishna@u.northwestern.edu
Andreas Kropf, AndreasKropf2011@u.northwestern.edu
Assaf Patir, assaf.patir@northwestern.edu
Ludovico Zaraga, Ludovico.Zaraga@u.northwestern.edu
TA office hours will be announced; all TA office hours are held in AAH 328.
1. The Course: Its Purpose and Prerequisites. Economics 311, along with 310
(Microeconomics), are the basic "intermediate" courses that are taken after the "principles"
courses, 201 and 202. Only 201 is a prerequisite for 311, or alternatively a score of A5" on the
AP test for macroeconomics. Please note: neither 202 nor 310 is a prerequisite for 311.
2. Relation to Economics 201. While overlapping Econ 201 in the first two weeks,
Economics 311 develops a more complete model of economic activity and applies it to an
explanation of the relationships among inflation, unemployment, real output growth,
money, the federal budget, the foreign exchange rate, the trade deficit, and other central
economic concepts. A single integrated algebraic model is used in 311, and much of the
course involves learning how to use this model to answer questions about the real world.
There is much more emphasis on using and solving algebraic models in 311 than in 201.
Also, the course goes much more deeply into the sources of today’s high unemployment,
slow recovery, and the sources and consequences of the 2007-09 financial crisis. Econ 311
uses a custom-designed book of readings (clippings, short articles) to bring the "real world"
to bear on every topic.
3. Required Reading. The textbook is a relatively new edition that was released on
April 1, 2011. It is completely changed from the previous edition, with extensive new
content and an entirely new core chapter to explain the sources of the “Great Recession” of
2008-09 and the slow recovery of 2009-11. To save students a lot of money and provide
multiple options for purchase, the book and electronic homework are available only from
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the publisher’s web site. Full details are included subsequently.
4. Advice. If you don't understand a particular point in the lecture, wave your hand
and ask me to explain it again. Or come up and ask after class. For questions about the
text, problems, and readings, talk to the TAs in the section meeting or in their office hours.
You will also find that many of your questions only take a minute or two to answer, and for
these you should come up after class rather than making a special trip to office hours, either
mine or those of the TAs. You can also reach the TA or me by e-mail (see addresses above).
The TAs and I both pledge that any e-mail question will be answered within 24 hours.
5. Notes on lectures and TA sections. The lectures will mix an explanation of the most
important textbook material, and presentation and solution of questions and problems,
with lots of comments and examples showing how the textbook model(s) apply to some of
the great macro issues of today and yesterday. The outside readings will be discussed
frequently in lectures and linked to particular sections of the textbook. TA sections will
administer quizzes and discuss answers, provide sample test questions prior to the
midterms and final, and present additional explanations of topics for which there is
insufficient time in lectures. The TAs do not come to lectures and do not read the course
packet of outside readings. If you don=t understand something from a lecture, you can
access the lecture slides a day or two after the lecture on Blackboard. If you have a further
question on lecture material, e-mail me rather than the TAs.
6. Tips on getting a good grade. This course is designed to give you lots of open-book
practice at mastering the material prior to the closed-book midterm and final exams. Your
textbook comes with access to electronic homework, which you will do according to a
schedule of preset deadlines. The homework is designed so that you can answer questions
several times until you get a perfect score. Short quizzes in TA sections also provide you
with practice in answering questions in a timed and closed-book situation. Every chapter
of the textbook ends with discussion questions and problems. Answers to these questions
and problems are available on Blackboard. (Please note that the content of the electronic
homework largely duplicates the end-of-chapter problems but often uses different
numerical examples). The midterms and finals are split roughly in half between multiplechoice questions and short answer questions that require you to calculate specific answers.
In addition, there will be additional multiple-choice questions on the midterms and final
(but not on the quizzes) about current macro issues based on the lectures and outside
readings. My web site has copies of past midterms and finals stretching back many years,
all with answers.
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7. Use of Blackboard, availability of lecture slides. In Fall 2012 most lectures will have
new data charts that update graphs from the textbook, and the lectures will teach new
material relevant for understanding the Great Recession, the slow recovery, and the Global
Economic Crisis. Lecture presentations are posted on Blackboard within a day or two after
each lecture. All announcements in this class are sent to you directly via e-mail; you do not
have to look at Blackboard for announcements. The Teaching Assistants also use
Blackboard to post grade distributions.
8. Requirements.
a. MyEconLab (MEL) homework assignments, 10 percent of your grade. Your
scores are cumulated automatically within the MEL software system. Students who skip
doing the MEL assignments will lose in two ways. They will lose directly 10 percent of
their grade, and they will find that they are less prepared for closed-book quizzes,
midterms, and finals than their fellow students who diligently use the resources that MEL
provides. Please note: your three lowest homework assignment scores will be automatically
dropped (from a total of 12 assignments), so don’t worry if you forget an assignment or can’t
meet the time deadline.
b. Short Quizzes (5). In TA sections on the dates indicated on the schedule.
Counts 20 percent of grade.
c. Midterms (2). Monday, 22 October, and Monday, 12 November. Each
counts 17 percent of grade, total 34 percent.
c. Final. Friday, 14 December, 3-5 pm. Counts 36 percent of grade.
Note that the final takes place late in finals week; do not book your
holiday air travel to depart prior to the evening of 14 December.
IMPORTANT NOTES: A pocket calculator must be brought to each quiz, midterm and to
the final exam. LAPTOPS MUST BE CLOSED, SMART PHONES AND i-PADS MUST BE
TURNED OFF, AND ALL ELECTRONIC GEAR PUT AWAY. In a new policy instituted
by most economics professors in lecture classes, laptops cannot be visible during lectures
(of course all exams are closed-book and closed-laptops). We have found that web-surfing,
texting, and game-playing by students in lectures harms their ability to learn the material
and is distracting to students around them. Take your notes on paper and buy a lined
notepad for this purpose.
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TA SECTION LOCATIONS
TA sections are required for one hour per week. Signup for TA sections is handled
by CAESAR. (If you have technical questions about registration problems, call James Burns
at 7-7263, james-burns@northwestern.edu.)
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22
23
24
25
26
27
28
Krishnamurthy
Krishnamurthy
Kropf
Kropf
Patir
Patir
Zaraga
Zaraga
Friday 10-10:50a
Friday 4-4:50p
Friday 10-10:50a
Friday 4-4:50p
Friday 10-10:50a
Friday 4-4:50p
Friday, 10-10:50a
Friday, 4-4:50p
UNV 121
UNV 101
ANN G21
UNV 121
ANN 101
KRG 4310
ANN G32
HRS L28
Please note that there is plenty of room for students in the TA sections. If one of the
sections fills up, just choose another.
SCHEDULE OF TA SECTIONS
05 Oct
12 Oct
19 Oct
26 Oct
02 Nov
09 Nov
16 Nov
23 Nov
30 Nov
07 Dec
Teach National Income, Price Measurement Problems
Practice questions; Quiz 1
Return quiz; Practice questions; Quiz 2
Return midterm; Discuss answers
Practice questions; Quiz 3
Practice questions; Quiz 4
Return midterm; Discuss answers
NO TA SECTIONS; THANKSGIVING HOLIDAY
Practice questions; Quiz 5
Review sessions will be scheduled at times and places to be announced
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ECONOMICS 311
REQUIRED READING AND INSTRUCTIONS
Text:
Robert J. Gordon, Macroeconomics, 12th edition, 2012, Pearson/AddisonWesley (G).
The book is not available at Norris. You buy it directly from the publisher,
using the detailed instructions that are stapled to the back of this syllabus.
Book of Readings: A custom-made course packet of supplementary magazine and
newspaper articles is now available in the Economics department
office (AAH 302) for $13.
Each item in the table of contents is
numbered to correspond to a chapter in the textbook, e.g., selection "21". You should read the items corresponding to a given chapter after
you=ve heard the initial lecture on that material.
Errata:
An errata sheet will be posted on Blackboard. These errors were discovered
either after the book was printed or by students in this class in Fall 2011.
Notes on the Reading Materials:
You must buy the 12th edition of the text. This is the first edition to have electronic
homework, so you won’t find that available for any earlier edition. Also, the 12th edition
has been completely rewritten to focus on the Global Economic Crisis and the extremely
weak condition of the current U. S. economy. The chapter order is different, and Chapter 5
is completely new and will be the central core chapter in this year’s class.
HOW TO READ: Your aim with the theoretical parts of the text and workbook is to absorb
the content completely and precisely so that you can answer test questions accurately.
Your aim with the case studies in the textbook and with the packet of supplementary
readings is quite different -- to broaden your knowledge by absorbing some perspective of
history, recent events, attitudes, and opinions. Your best guide to the points to emphasize
from the readings is the discussion in lecture. Several multiple-choice questions on the two
midterms and on the final will be drawn from the outside readings.
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Omitted Chapters
Because Northwestern is on the quarter system, we cannot complete the entire
textbook which is designed for semester courses. The course includes Chapters 1-12.
Chapters 13-17 are excluded. Chapter 18 is a reading period assignment.
WEB RESOURCES
Textbook Web Site. www.myeconlab.com
See instructions attached to this syllabus. This is the site where you sign up to buy
the e-book and/or the print book and to obtain access to the electronic homework called My
Econ Lab.
Blackboard.
Blackboard is where you find a copy of this syllabus. One or two days after each
lecture the Powerpoint slides will be posted here. You can also find answers to end-ofchapter problems. You do not need to check Blackboard for “Announcements,” since these
are all sent to you by e-mail.
Gordon Web site (google “Robert J. Gordon”)
This is where you find copies of all previous midterms and final exams, all with
answers provided.
Blogs on the Web
There are many blogs by economists on the web. Some provide links to the latest news and
analytical articles on current events. Others provide opinions and solicit reactions by
readers. Since blog content changes daily, you=ll have to figure out which items are
relevant to this course, and your curiosity may lead you to other blogs. Because URLs of
these blogs are constantly changing, I=ll list here some of the main macro-oriented blogs
and invite you to find them using google or any other search engine.
An “aggregator” that provides links to all the blogs, and a running list of the most
interesting items from the latest blogs, is
Economist=s View: http://economistsview.typepad.com/
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Some of the blogs (that you can google) most useful to undergraduate students are:
Paul Krugman The New York Times
Brad de Long=s Semi-Daily Journal.
Greg Mankiw Blog.
Econbrowser.
Becker-Posner Blog.
David Warsh Economic Principals.
Students are invited to suggest additional blogs that they find interesting in general or
specifically helpful in their relation to the course material..
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ECONOMICS 311
LIST OF TOPICS AND ASSIGNMENTS (READING PACKET ASSIGNMENTS ARE NOT LISTED SEPARATELY)
M 01 Oct What is Macro; Basic concepts; First-day Handout
W 03 Oct Business Cycles; Current Situation
Nothing (first lecture)
G 1:1-8
M 08 Oct Measuring GDP, Inflation, and Unemployment
G 2:1-6, 8-9
Note: National Income, Price Measurement Problems will be taught by TAs G 2:7, G 2-Apx
W 10 Oct Equilibrium Income; Multipliers; Fiscal Policy
G 3:1-6; G 3-Apx
M 15 Oct Interest Rates; IS Curve; Demand for Money; LM Curve
W 17 Oct Using the IS-LM Model; Origins of the 2007-09 Recession and World Crisis
G 3:7-10; G 4:1-4; G 4-Apx
G 4:5-9; G 5:1-4
M 22 Oct FIRST MIDTERM (covers text and reading packet through Chapter 4)
W 24 Oct World Economic Crisis and the Policy Dilemma
G 5:5-8
M 29 Oct Government Budget, Government Debt, Fiscal Policy Dilemmas
W 31 Oct Fiscal Stimulus; Limitations of Obama Stimulus; International Concepts
G 6:1-7
G 6:8-11; G 7:1-4
M 05 Nov Exchange Regimes and Open-Economy Policy Macroeconomics
M 07 Nov Classical vs. Keynesian; Causes of Great Depression; Analogies to 2009
G 7:5-11
G 8:1-9
M 12 Nov SECOND MIDTERM (covers text and reading packet through Chapter 8)
W 14 Nov Inflation: Phillips Curve, Demand and Supply Shocks
G 9:1-7; G 9-Apx
M 19 Nov Concluding Inflation Model; Costs and Causes of Inflation
W 21 Nov NO CLASS (Thanksgiving Travel, note makeup on December 3)
G 9:8-11; G 10:1-6
M 26 Nov Why the Unemployment Rate Can't be Zero; Growth Theory
W 28 Nov Solow Puzzles; Endogenous Growth Theory; Failure of Convergence
G 10:7-11; 11:1-5
G 11:6-9; G 12:1-3
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(List continues on next page)
M 03 Dec The Big Questions of Economic Growth and the future of U. S. Growth
G 12:4-8
(Note: the 03 Dec class is a makeup for pre-Thanksgiving Wednesday 21 Nov)
03 Dec
- 07 Dec
READING PERIOD (please note Chapter 18 is required reading)
F 14 Dec
FINAL EXAMINATION (3-5 pm)
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G 18-1/6
Fall 2011 Semester – ECON 311, Professor Robert Gordon Intermediate Macroeconomics Required
Materials
Options for Purchasing your course materials online:
This semester, you will be required to purchase Gordon’s Macroeconomics 12e textbook and access to MyEconLab. Below are online purchasing options from
the publisher. Online purchases can be completed using an accepted credit card or PayPal account.
Option 1 (Online) – MyEconLab + eText, Total Price $100
Purchase MyEconLab access online (myeconlab.com): $100 (WITH fully searchable eText with interactive notetaking and other features)
Option 2 (Online) –MyEconLab (no eText) + Print Upgrade (three-hole punched version of print book), Total Price $110
Purchase MyEconLab access online (myeconlab.com): $55 (NO eText)
Once in MyEconLab, purchase a print upgrade (three-hole punched version of print book)– will be mailed to you: $55
Note: Follow the registration directions below, purchasing the $55 option. Once fully registered into the course, you will be able to purchase the three hole punched text as a separate
transaction. Free shipping for 3 to 8 business days. Ground and Overnight are available for an additional cost, but you will be given 2 chapters access to the full eText to use until your
print version arrives. If you purchased a used book, you must buy access to myeconlab separately for $55 or $100.
Option 3 (Online)- MyEconLab with Etext and then purchase print upgrade (three-hole punched version of print book), Total price $155
If you purchase MyEconLab access online with etext ($100) and then decide that you would like to have a three-hole punched version of the book you may purchase this option for $55,
for a total of $155.
Check System Requirements,
1) Start at www.mypearsonlab.com . In the lower left hand corner, there is a link to System Requirements.
2) The system is very flexible, so assuming your system meets the requirements, go back to www.pearsonlab.com.
3) On the right hand side of the screen, under “Register”, select “Student”.
4) Enter the Course ID provided Gordon96194.
5) On the next screen, you can now sign in with your Pearson username and password that you may have used in another class. If you
have forgotten either of these, you can retrieve them using the email address you used when you first created a Pearson account. If you do not
already have a Pearson username and password, you can create one from this same page.
6) Using one of the options above, enter your username and password to complete the next step in the registration process.
7) The next screen will allow you to either use the access code bundled with the book in the bookstore or purchase access to MyEconLab.
• If you have the access code kit, simply open it and enter the code provided to complete registration.
• If instead you wish to purchase one of the options above, then select either the
th
•
“MyEconLab in New Design for Macroeconomics, 12 Edition by Gordon” for $55, or
th
•
“MyEconLab in New Design Plus eText for Macroeconomics, 12 Edition by Gordon” for $100.
You may use a credit card or PayPal for this purchase and instant access.
8) If at any time you wish to explore additional purchase options available to you, follow the next steps.
• From the Course Home Page, on the left hand navigation menu, select the arrow next to “Course Home” to see “Purchase
Options” and “Calendar”.
• Select “Purchase Options”, and you will be able to purchase either the full eText (if not already purchased) or the three hole
punched print version for $55 as described above.
9) The Course Home Page will show links to upcoming assignments, and the left hand navigation menu will give options for an
independent study plan, news feeds, assignment results, the eText (if purchased), and communication and document sharing tools. Under Chapter
resources, you will find links to resources like data appendices, Excel problems, and Glossary Flash Cards.
10) At any time you need help, select the Help and Support link from the top navigation bar, where you will find Student tours and training
on navigating inside the MyEconLab course.
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Economics 311
Frequently Asked Questions
Q:
A:
Is Economics 310 or 202 a prerequisite?
No, just Economics 201. You do not need my permission to take Econ 311 unless
you have not had Econ 201.
Q:
A:
Can I show up for any section I want regardless of what I've signed up for?
No, you must come to the section you've signed up for, except for sickness.
Q:
A:
Any tips on which section to sign up for?
Sign up for the section that is most convenient geographically and most compatible
with your other obligations and activities. Room sizes for the sections are large
enough in relation to the total student enrollment, that you should have no trouble
getting into your preferred section time and location.
Q:
A:
Important dates?
P/N Deadline, Friday, October 12.
Drop Deadline, Friday, November 2 (you'll know your first midterm grade by then).
Q:
A:
Can I add now?
There is plenty of room in the classroom. You=re welcome to join us.
A:
Q:
Can I take notes on my laptop?
No. Instructors of large lecture courses in Econ have decided that laptops are a
distraction both for the student using them and the students around them. Students
who have their laptops open are typically surfing the web or doing e-mail rather
than taking notes. The same goes for ipads and iphones. Buy a lined note pad and
bring it to class.
Q:
A:
Is the electronic homework required?
Yes, completion of the electronic homework (My Econ Lab or MEL) counts for 10
percent of your grade. You need to look up the MEL schedule and record the
deadline times and dates in your own calendar. To allow for students to miss or
forget several homework deadlines, your three lowest grades will be automatically
dropped.
Q:
A:
What’s the point of the electronic homework?
Quizzes and exams in econ courses are always closed book with a time constraint.
The electronic homework is open book, and you can take as long as you need to
complete it. The homework also gives you a chance to do problems again if you
miss them on the first try. Thus the homework provides an ideal opportunity to
learn the basic concepts of the course without any time pressure in a guided and
helpful environment.
Q:
A:
What happens if I miss a quiz?
If illness or an extracurricular activity forces you to miss a quiz, your grades on the
other quizzes will be averaged and applied to your missing grade. However, only
one quiz can be missed and given credit in this way. You will receive zero credit for
any other missed quiz. There are no make-ups for quizzes. To be fair to people who
take all five quizzes, their lowest grade of the five will be dropped (Hint: this is an
incentive to take all five quizzes).
Q:
A:
What's the point of the quizzes?
Two: first, to give you an incentive to keep up with the reading, and second, to give
you practice on exactly the same kinds of questions that will be asked on the two
midterms and the final. Material to be covered in quizzes will be set out in detail in
lectures, and there will be practice problems both in lecture and in TA sections.
Q:
Should I pay any attention to the electronic homework, the text's End-of-Chapter
questions and problems, or just past exams?
After you complete the electronic homework, see if you can do the end-of-chapter
problems closed-book. Many of these problems are set up in exactly the same
format as problems on the quizzes, midterms, and final. As indicated on the
syllabus, answers to all these questions and problems are provided on Blackboard.
A:
Q:
A:
Where are the answers to the text's End-of-Chapter problems?
These answers are in the documents section of Blackboard.
Q:
A:
What happens if I miss either midterm?
The midterms are administered on Monday during the normal class time. If you
are not free at 3:30pm those days, then you should not be taking this course.
Economics 311 Frequently Asked Questions, Page 3
Q:
A:
Will there be essay questions on the midterms or is it all objective?
No essay questions on the midterm. But, beware. A few multiple-choice questions
on the midterms will be based on the course packet and on the lectures' linkages
between the outside readings and textbook material.
Q:
A:
Where do I find past midterm and final exams?
On my web site (Google “Robert J. Gordon”) under the ATeaching@ tab.
Q:
A:
What happens if I fall suddenly ill and cannot take the midterm?
You must send an e-mail before the 3:30pm start time of the midterm exam. You will
get an automatic F on the midterm if you don't show up and haven't notified me
beforehand. If you have a legitimate excuse due to personal illness or a family
emergency, then we will “prorate” the test by adjusting your score so that the
missed exam does not count. That is, your course grade is based only on the other
elements with weights adjusted appropriately.
Q:
A:
What happens if I miss the final?
You get an incomplete in the course. There are no alternative arrangements made to
take the final at any time other than that listed in the official registrar's schedule. Do
not repeat the mistake of occasional students in the past by reserving your
homebound airplane travel for Christmas vacation too early to attend all your final
exams, not just the final in this course.
Q:
Do I need to come to lectures? Can't I just read the textbook and do the electronic
homework and end-of-chapter exercises?
The lectures will make it easier to read the textbook and get good grades on the
quizzes and tests. Sample problems will be worked in the lectures and linked to the
diagrams and equations of the textbook. Each Monday before a quiz, there will be
hints of exactly what types of questions will be asked on the quizzes. Also, there
will be much discussion in the lectures of current events, both those covered in the
course packet and other more recent events. Both midterm and the final will contain
multiple-choice questions based on the course packet and discussion of current
issues in the lectures.
A:
Q:
Are lecture notes and handouts available on the web site?
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Economics 311 Frequently Asked Questions, Page 4
A:
Yes for lecture slides, no for handouts. However, beware. Much that happens in the
lectures consists of writing on the chalkboard of material, summaries, lists, etc., that
do not automatically appear on the Powerpoint lecture slides. Also you must come
to class to obtain the handouts.
Q:
A:
Are all the questions on the quizzes objective, e.g., true-false or multiple choice?
No questions are true-false, about half of the time on the midterm and about 1/3 on
the final is devoted to multiple-choice questions. Many of the questions on the
quizzes, midterms, and final are analytical, that is they are algebraic problems like
those in the end-of-chapter problems. They require you to solve a set of ingredients
using a model and obtain explicit numerical answers. At each midterm we check
carefully to make sure that you do not bring to class any equations or formulas in
the memory of your electronic calculator, so do not try to do this.
Q:
A:
Is there any difference between the final and the two midterms?
Unlike the midterms, on the final exam one half-hour consists of essay questions that
are entirely related to the lectures and book of outside readings and are not based on
the textbook at all. I grade these essays myself, there is no TA involvement.
Students who skip lectures and do not read the course packet often find their grade
slipping from a course grade of A- to B+, or from B+ to B, because their essays reveal
no knowledge gained from the course packet and the lectures. The essays are
graded on a scale of 0 to 30 and the actual grades range from 2 to 28 or so, and this
makes a big difference in a large class that is graded on the Acurve@ as explained in
the initial lecture.
Q:
A:
How do I get a good grade?
Recipe:
(1)
Skim the textbook before the lecture.
(2)
Read the text carefully and do the electronic homework on time.
(3)
Read the outside readings, since questions will be based on the
outside readings both on the two midterms and final (but not on the
quizzes).
(4)
Come to lecture, since the lectures will highlight the most important
things to learn from the text, show you how to work problems that
will appear on the quizzes, and only at the lectures will you learn how
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Economics 311 Frequently Asked Questions, Page 5
to understand and integrate the outside readings with the text
material.
Q:
A:
Other Hints?
In the first two weeks the class follows the text, and there are very few outside
readings. Starting in the third week, the outside readings come thick and fast, and
the lectures place as much emphasis on integrating the outside readings with the
text as on the text concepts themselves.
Q:
A:
Is there a Web Site for this course?
Actually there are three web sites, and you should become familiar with all of them.
There is the Gordon web site which contains problem answers and past exams (don=t
miss the 325 photos of famous economists). Then there is the publisher=s My Econ
Lab web site where you access the electronic homework.
Finally, there is
Blackboard, which includes answers to questions and problems, and copies of
lecture Powerpoints. You should bookmark all three of these web sites.
Q:
A:
Can I send a question by e-mail to the TA or to Prof. Gordon?
Yes. Both Prof. Gordon and the TAs have pledged to answer every e-mail within 24
hours, seven days per week. Send e-mails to your TAs with questions about
textbook concepts and answers to problems that you may not understand. Send emails to Prof. Gordon with questions about course packet articles and about
anything that happens in lectures.
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