ECON-100 Principles of Macroeconomics
Dr. Martha Starr
Department of Economics
American University
Summer 2009
Telephone:
Office:
Office hours:
Email:
Class website:
(202) 885-3747
Roper Hall, Room 201
Tuesdays and Thursdays,12:15-1:45 pm
mstarr@american.edu
Note: Please put “econ-100 macro” in the subject line!
AU blackboard
Course description
This class provides an introduction to macroeconomic analysis. Whereas the field of microeconomics
studies individual markets for goods, services, and factors of production, the field of macroeconomics
studies the behavior of the economy as a whole. Central problems in macroeconomic analysis include:
basic works of the market economy; costs and benefits of free trade; the measurement of economic
growth and its determinants in the long-run; measurement, causes and consequences of
unemployment and inflation; uses of fiscal and monetary policy to offset business cycles; and linkages
between national economies via international finance.
A solid understanding of macroeconomics is especially important for understanding the present
„financial crisis‟ and economic downturn -- as well for as evaluating competing proposals for getting
ourselves out of this mess.
Buying the textbook + signing up for Aplia
The text for the class is N. Gregory Mankiw, Principles of Macroeconomics, 5th edition (2008). We will
also be using an online problem-set service, Aplia, for which a subscription is required. The Aplia
problem sets are designed to go with Mankiw, but are tailored to our course by me.
Why Aplia?
The idea behind Aplia is that conventional methods of teaching and learning economics often fail to
actively engage students in learning, resulting in spotty or variable understanding of the material
covered. This is premised on the view that there are three levels of learning:
Knowledge -- remembering previously learned material (e.g. definitions of concepts, core ideas
behind theories, etc).
Comprehension –- having a grasp of the meaning of material (e.g. being able to interpret
graphical or statistical information, or explain the rationale behind a given concept or approach).
Application -- ability to apply theories, methods, concepts, etc., creatively to analyze new
situations.
Thus, the Aplia problem sets ask you to use your newly acquired knowledge to analyze or solve
problems similar to those found at the end of each chapter. But because the delivery platform is
online, there are feedback features that enable you to test and develop your understanding much
more than you would from doing problems the old-fashioned way.
-2Aplia’s ‘grade it now’ feature
The core feedback feature in Aplia is the „grade it now‟ option. After finishing a problem, you can
click „grade it now‟ and see immediately what you got right and/or wrong. Clicking „explanation‟ will
further show the reasoning behind the answer. If you initially got items wrong, you can click „try
another version‟, which will give you another version of the problem very similar to the first but with
a different setup or numbers.
You can do a „grade it now‟ problem up to three times, and your score will be an average of your
attempts. For example, if you get 3 out of 5 on your first attempt, but then try it two more times and
get 5 out of 5 on each, your score will be [3 + 5 + 5] 3 = 4.33 out of 5. This engages you more in
learning and gives you more opportunities to succeed.
Signing up for Aplia
The Aplia subscription costs $80 -- which includes free access to an electronic version of the Mankiw
textbook via the Aplia website for the duration of the class.
THE LAST PAGE OF THIS SYLLABUS GIVES DETAILED INSTRUCTIONS ON SIGNING UP FOR APLIA.
Options for getting the Mankiw book
You have three ways of getting access to Mankiw:
1. ONLY use the free e-text that comes with your Aplia subscription, so all you pay is $80 for the
subscription. [saves trees!]
2. Buy a hardcopy of Mankiw from Aplia for $45, plus the $80 subscription, for a total cost of
$80+45=$125. [they'll mail you the book]
3. Buy the textbook from the bookstore (used copy $120) plus separate Aplia subscription for
$80, for a total of $200.
The only disadvantage to (1) is that you wouldn't have a hardcopy of the book, although you ARE
allowed to print pages from the e-book.
Aplia assignments [worth 25% of your grade]
There will be 10 Aplia assignments over the course of the semester. Due dates are shown on the
calendar below.
Work must be submitted by 11 pm on the due date; your score will reflect whatever work you
have (or haven‟t!) done as of that time.
The first two Aplias are required practice and are due THIS FRIDAY. It is very important to do
these assignments, to get familiar with Aplia tools and conventions and to make sure you don‟t
have any configuration problems [Aplia support will help if you do]. For these two assignments,
you will get full credit as long as you do them, so you can intentionally get things wrong to see
how it works.
Out of the 10 assignments, you can drop your two lowest scores.
Note that assignments due on Fridays correspond to material covered on the previous Tuesday,
and assignments due on Mondays correspond to material covered on the previous Thursday.
(Aplia #6 is an exception).
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Weekly current-events commentaries + presentation [worth 10% of your grade]
Over the course of the class, you will have to submit four 1- or 2-page write-ups of articles on a
macroeconomic or financial topic from the high-quality press (New York Times, Wall Street Journal,
Financial Times, or The Economist). Due dates are shown on the calendar below.
For one of these write-ups, you will make a brief (2-4 minute) presentation to the class. Instructions
and a schedule for the presentations will be distributed soon.
Class participation [worth 5% of your grade]
Attending all classes, answering and asking questions, participating in discussions, offering good
insights, etc., helps maximize your learning in this class. To earn all 5 participation points, you should
attend virtually all classes and be actively contributing to the flow of class discussion. Excellent
attendance without much talking is worth about 4 points. Irregularities in attendance automatically
reduce participation points to 3 or below.
Overview of grades, tests and dates
Item
% of
final
grade
Dates
Due dates shown on calendar below.
Aplia assignments (10)
25.0
Aplias #1 and 2 are REQUIRED PRACTICE; you get full
credit if you do them but zeroes if you don‟t.
You can drop the lowest 2 of your 10 scores.
Midterm
25.0
Thursday, June 4
Weekly current events
commentaries – of which one
will be presented
10.0
Due dates shown on calendar below. Instructions and
schedule for presentations to be distributed soon.
Final exam
35.0
Thursday, June 25
Class participation
5.0
Throughout the semester
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Class policies
Make-up exams
Not given, except for absences caused by an unavoidable medical or family
situation that I can verify (e.g. note from health-care provider)
Late current-events
write-ups
Accepted, but with points deducted (unless work is late for a legitimate,
unavoidable reason).
AU‟s Academic
Integrity Code
In effect at all times. No plagiarism, no submitting work that is not your own, no
„collaboration‟ in exams, etc. Violations will be prosecuted!
Grades reflect evaluation of course work as follows:
Grades
A
AB+
B
BC
D
F
Outstanding –- all superlative work
Excellent –- consistently superlative work
Very good
Good
Good, but with notable gaps in understanding
Satisfactory
Poor
Failing
Note: A high grade for the class is not possible without high grades on exams and
assignments and near-perfect attendance and consistent class participation.
-5-
ECON-100-C01 -- COURSE SCHEDULE
MAY
Monday
18
Tuesday
19
Wednesday
20
Intro to econ.
Chaps. 1-2 (skip
„circular flow‟)
25
26
Friday
21
22
Supply & demand,
gov‟t. policies
Aplia #1 & 2 @ 11 pm
-- REQUIRED PRACTICE
Chaps. 4 & 6
27
28 – Article #1 due
Trade, GDP
Aplia #3 @ 11 pm
Thursday
29
Inflation, unempl.
Chaps. 9-10, inc.
„circular flow‟ (pp.
24-25)
Chaps. 11 & 15
Aplia #4 @ 11 pm
4
5
JUNE
1
2
3
Growth, saving &
investment, finance
Aplia #5 @ 11 pm
Chaps. 12-14
8
9
MIDTERM
(does not cover
material from 6/2)
10
11 – Article #2 due
12
Money & inflation
Open-economy,
exchange rates
Aplia #6 @ 11 pm
Chaps. 16-17
Chap. 18
Aplia #7 @ 11 pm
15
16
18 – Article #3 due
19
17
Fiscal & monetary
policy
Aggregate supply &
demand
Aplia #8 @ 11 pm
Chap. 20
22
23 – Article #4 due
Discussion of current
Aplia #10 @ 11 pm
macro/financial
crisis
Chap. 21
24
Aplia #9 @ 11 pm
25
F I N AL E X A M
(covers material from
6/2 on)
Have a good summer

NOTE: Friday Aplias correspond to material covered on the previous Tuesday; Monday Aplias correspond to
material covered on the previous Thursday. (Exception is Aplia #6, which corresponds to material from June 2).
Scores are recorded as of the time indicated, so they will reflect whatever work you have (or haven‟t!) done as
of that time.
-6-
Student Registration and Payment Instructions
Course Name: Starr, Macroeconomics (Mankiw 5e) SUM 2009
Start Date: 05/19/2009
Instructor: Martha Starr
Course Key: FMDP-N4MF-MN43
Registration
If you have never used Aplia before...
1. Connect to http://www.aplia.com.
2. Click the New Student link and enter your Course Key: FMDP-N4MF-MN43. Continue
following the instructions to complete your registration.
If you have used Aplia before...
1. Connect to http://www.aplia.com.
2. Sign in with your usual e-mail address and password and enter your Course Key when
prompted: FMDP-N4MF-MN43. If you are not prompted for a new Course Key, click the
Enter Course Key button to enroll in a new Aplia course. Enter your Course Key when you
are prompted.
* You will have different payment options after you register for your course. If you choose to
pay later, you can use Aplia without paying until 11:59 PM on 06/01/2009.
Payment options
1. Aplia subscription only ($80) – includes access to the digital textbook
2. Aplia subscription ($80) plus hardcopy of textbook ($45).
Aplia will mail you the book.
Your subscription also gives you access to the digital textbook.
* You will have access to the digital textbook up until the end of this course.