ECON 1041/PRINCIPLES OF MACROECONOMICS
SYLLABUS FOR FALL, 2015
INSTRUCTOR: Ken McCormick Office: CBB 213
Phone: 273-6051
Office Hours: MWF 1:00 - 2:00 and by appointment
E-mail: kenneth.mccormick@uni.edu
Web Page: http://business.uni.edu/mccormick/
REQUIRED BOOKS: Mankiw, Principles of Macroeconomics, 7th edition
(The 6th edition is also acceptable and should be MUCH cheaper if you
can find it.)
Hakes, Study guide to accompany Mankiw’s Principles of Macroeconomics
COURSE OUTLINE AND READING LIST:
TOPIC
READING ASSIGNMENT
I. Introduction to Economics
II. Basic Market Analysis
Chapters 1, 2 & 3
(including appendix to Ch. 2)
Chapter 4 & pages 112-121
***** TEST I *****
III. Measuring Some Key Macroeconomic
Variables
Chapters 10 & 11
IV. The Basics of Long-run
Macroeconomics
Chapters 12, 13 & 15
***** TEST II *****
V. Money and Inflation
Chapters 16 & 17
VI. The Basics of Open-Economy
Macroeconomics
Chapter 18
***** TEST III *****
VII. The Basics of Short-run
Macroeconomics
VIII. The Recent Financial Crisis
and Slow Recovery
(Time Permitting)
***** TEST IV *****
Chapters 20 & 21
None
What is the purpose of this course?
Most students take Principles of Macroeconomics because it is required for
their major. Yet you should know why this requirement exists. The purpose of
the course is threefold:
1. To introduce you to the discipline of economics. The news media regularly
report important economic events and statistics. The course will help you
understand these events and statistics, and, more importantly, help you
understand what determines them. Knowledge of economics will therefore
help you make better decisions in your career and as a citizen.
2. To help you recognize that some of what journalists and politicians tell us
about the economy is just plain wrong. Robert Solow, a Nobel-Prize
winning economist, put it this way:
Maybe the main function of economics in general is not, as we
usually think, the systematic building of theories and models, or
their empirical estimation. Maybe we are intellectual sanitation
workers. The world is full of nonsense, full of things people and
institutions know that 'ain't so.' Maybe the higher function of
economics is to hold out against nonsense.... All those theories
and models we invent and teach are just nature's way of making
people who know nonsense when they see it.
3. To exercise your mind and sharpen your reasoning skills. Today, more
than ever, one of the most important assets a person can have is a strong
mind. As the pace of technological change accelerates, we will have to
learn and adapt faster than ever before. The only way to strengthen one's
mind is to exercise it. This course will give you plenty of healthy mental
exercise.
TESTS:
There will be a total of four multiple-choice tests. The first three will have 40
questions while the fourth (the final) will have 60 questions. Test questions
will emphasize the material covered in the lectures, but there will also be some
questions from the reading assignments about things not necessarily covered
in class.
It has been my experience that people who practice what they learn tend to do
better than people who don't. To encourage you to practice your economics,
each exam will have roughly 10 questions that are either taken verbatim from
the study guide or are variations of study guide questions.
Dates for the first three tests will be announced in class as the semester
progresses. The fourth test will be during the time allotted for our final and
will be partly comprehensive.
QUIZZES:
There will be four quizzes, each worth 5 points. The quizzes will NOT be
multiple choice. The purpose of the quizzes is to encourage you to keep up.
Economics is easier if you work at it on a regular basis instead of trying to
learn everything just prior to an exam.
GRADES:
At the end of the semester, the total number of points you have earned will be
divided by the number of points earned by the highest-scoring student in the
two sections of the class. The resulting percentage will then be applied to the
following scale:
.90 - 1.00
.80 - .89
.70 - .79
.60 - .69
< .60
A
B
C
D
F
A plus or minus will be added to scores close to the boundaries.
There is NO extra credit in this class. Spend the time you would’ve spent on the
extra credit studying to do better on the exams and quizzes.
How to get your money’s worth from the class:
You pay to go to school here. Unless you enjoy wasting money, you should
want to make sure you get the education you are paying for. Because
Principles of Macroeconomics is not an easy course for most people, you will
have to be especially diligent in this class. I therefore suggest that you:
1. Attend class regularly. If you are unable to attend class, the lectures will
be available on DVD. They can be checked out from the Reserve Desk in the
library.
2. Read the book. You are responsible for all of the material presented in the
textbook, whether we talk about it in class or not. In addition to taking
lecture notes, you may also want to take notes on the readings. These notes
will not only be a useful study aid, but you may be surprised to discover
how forcing yourself to write them will improve your comprehension of the
readings. If taken seriously, writing forces you to think clearly.
One of the central tasks of a university is to teach you how to learn. The
amount of knowledge humanity possesses is growing at a tremendous rate,
which means that after you graduate, you will have to keep learning in order
to keep up in the "real world." Most of you will not be able to learn what you
need to know from a professor or a teacher, so you will have to teach
yourselves. Usually that will mean reading something. It is therefore a good
idea to exercise and improve your reading skills and to learn how to
summarize in writing the essence of what you have read for future
reference.
3. Use the study guide. The study guide will help you determine if you really
understand the material or if you just think you do. The most common
remark I hear from students after tests is "I thought I understood the
material before I took the test." This is an indication that these students
have a passive understanding of the material (i.e. can follow along when
somebody else does it) but not the active understanding that is required on
an exam (i.e. cannot do the problems on their own). A study guide gives you
practice working with the material and allows you to gauge your level of
understanding.
4. Keep up. The best way to learn the material is a little at a time. If you wait
until just before an exam to study you are not likely to do well. Besides, if
you wait until the last minute to study, you may not have time to get your
questions answered.
5. Work hard. The primary determinant of how much you learn in here is how
hard you work. As the proverb says, the teacher can open the door, but
students must walk through on their own.
6. Remember that strengthening your mind is like strengthening your
body—no one else can do it for you. A physical trainer can tell you what
you must do to become physically fit, but you must do the exercises and
bear the pain. Likewise, a professor can tell you what you must do to
become mentally fit, but you must put in the time and bear the pain. If you
diligently apply yourself in this class, you will not only learn some
economics, but, more importantly, you will find that your mind will be
considerably stronger.
7. Get help when you need it. If the explanations given in class and in the
book are not sufficient, DO NOT HESITATE to get help. We will have free
tutors available (times will be announced in class). You are also welcome to
come see me during office hours or by appointment.
FINAL NOTES:
1. You are expected to show respect and consideration to the other students in
the class. Among other things, that means that you are expected to be quiet
during the lectures so that other students can hear them. Attendance is not
taken in this course, so if you don’t want to be here, don’t come.
2. Cheating on quizzes and exams is always a potential problem. As vigilant as
I try to be, I am trained as an economist, not as a policeman. For the vast
majority of you, I am sure that a simple appeal to your personal honor
and/or spiritual beliefs is sufficient. For the rest of you, I will appeal to
your self-interest: Anyone caught cheating (or aiding and abetting cheating)
will be subject to disciplinary action. UNI has given every instructor the
authority to punish cheating in a variety of ways, including giving the
student a grade of F and seeking his/her expulsion from the University.
In the recent past there has been a significant problem with people cheating
by means of “smart” phones and other electronic devices. Consequently you
may not use any such device during a quiz or exam. You ARE allowed to
use a calculator. You may NOT use a phone as a calculator.
3. In our globalized economy, when you graduate you will be competing with
people from all over the world. Some of those people work incredibly hard in
order to get an edge and to get ahead. The competition is fierce. If you want
to compete, push yourself. Develop self-discipline. Iowans are known for
their good work ethic, and you will need it.
4. Many of you went to high schools where it was possible not to work hard
but still get very good grades. You will discover that that is not the case in
UNI’s College of Business Administration.
5. Remember: Education is not something you buy. Education is a process
that transforms you. It is a prize that must be won with hard work.
The Americans with Disabilities Act
"The Americans with Disabilities Act of 1990 (ADA) provides protection from
unlawful discrimination for qualified individuals with disabilities. Students
requesting instructional accommodations due to disabilities must arrange for
such accommodation through the Office of Disability Services. The ODS is
located at 103 Student Health Center, and the phone number is 273-2676.”