EC101A: PRINCIPLES OF MACROECONOMICS
Fall 2014
Dr. Sanjay Paul
Office: Hoover 206
Tel: 717-361-1543
Email: pauls@etown.edu
Web: http://users.etown.edu/p/pauls/ec101
Class meetings
Tue, Thu 8:00-9:40am
Hoover 213
Office hours
 Mon 2:00-3:30pm
 Tue 9:45-11:15am
 Wed 2:00-3:30pm
 Thu 9:45-11:15am
And by appointment
Course description
The course analyzes the factors affecting output, employment and prices in the economy. We
examine how output (gross domestic product, or GDP) is measured through national income
accounting. We construct a model of aggregate demand and aggregate supply in an open
economy in order to explain fluctuations in GDP and unemployment (i.e., business cycles), and
changes in the price level (inflation).
What can the government do to raise employment or reduce inflation? Here, we analyze the
role of fiscal and monetary policies. We discuss the appropriateness of cutting (or raising) taxes,
reducing (or increasing) government spending, and raising (or lowering) interest rates.
We use the open-economy model to analyze the importance of international trade and capital
flows, and to explore the relationship between interest rates and exchange rates.
Learning outcomes
In this course, students will be able to:
1. Explain the various aspects of production, prices, and employment in an open economy
2. Explain the role of central banks and governments in the formulation and conduct of
monetary and fiscal policies
3. Analyze economic events and conditions in the global economy
Readings
The required text for the course is Principles of Macroeconomics by Krugman & Wells, 3rd
edition, Worth Publishers (2012). You are required to buy access to EconPortal, which includes
course materials, e-book and gradebook. To buy, go to
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http://courses.bfwpub.com/krugmanwellsmacro3.php and click on “PURCHASE access to
EconPortal”.
If you also wish to have a paperback edition of the textbook, you may order it from any source.
An older edition might suffice. But note: EconPortal is required for the course.
Evaluation
Your grade will be based on your performance in exams, quizzes, assignments and blogs.
Exam 1:
Exam 2:
Final exam:
Quizzes:
Assignments:
Blogs:
20%
20%
25%
10%
20%
5%
Tue, Sept. 16
Tue, Oct. 28
Tue, Dec. 9, 7:30am
Due every Thu, starting Sept. 4, at 11:00pm
Exams: The exams will consist of multiple-choice questions, graphs, mathematical problems, and shortanswer questions. They are cumulative and will be conducted in the classroom.
Quizzes: Quizzes will be brief, lasting 15-20 minutes. They will be given in the classroom and without
advance notice.
Assignments: Assignments will be will be assigned frequently. They will mainly rely on submissions
through the EconPortal system.
Blogs: You are required to write a summary of a relevant article from the news each week. Each
summary will be at least 500 words long, and draw on at least TWO references. (For example, if you
provide a summary of an article on unemployment from the Economist, you may include data on
unemployment from the Bureau of Labor Statistics, or provide arguments from another article in the
Wall Street Journal on the same topic.) Each summary has to be completed on EconPortal (under My
Blog) by Thu at 11:00pm. Your first blog entry will be due Thu, Sept. 4 and the last on Thu, Dec. 4.
(Remember: These are due dates, so you can submit them earlier. Keep this in mind especially for the
weeks of fall break and Thanksgiving.)
The grading scale is as follows:
100-93% A
92-90 A89-87 B+
86-83 B
82-80 B79-77 C+
76-73 C
72-70 C69-67 D+
66-63 D
62-60 D< 59 F
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Academic integrity
Students are expected to adhere to the Pledge of Integrity at Elizabethtown College. In this
course, you are expected to complete the assignments and tests entirely on your own. You will
not discuss the tests or assignments with others, nor will you seek or receive assistance from
others in completing them. Any breach of academic integrity will be dealt with in accordance
with the policy stated in the College Catalog.
Email communication etiquette
Start emails with an appropriate salutation (Dear Dr. Paul, for example). End them with your
name.
Always provide a subject in the subject line. Include “EC101” in the subject, so that I know right
away it is from a student in the class.
Use standard English, with proper spelling and grammar. If you write “i cant send u my sa til
later ttyl”, I will not know what it means and will consequently ignore it altogether.
Make sure your @etown.edu inbox is not full. If it is, my emails to you will not reach you, and
you will be left in the dark. Do not be left in the dark!
General policies
Deadlines are extremely important. Blog entries must be submitted on time. You will also need
to submit assignments on time. Plan ahead. Don’t wait until the last minute to complete your
task. Your Internet connection may go down; your computer may crash. In the interest of
fairness to others in the class, I will not be able to accommodate late submissions.
There are no opportunities for extra credit.
Disabilities
Elizabethtown College welcomes otherwise qualified students with disabilities to participate in all of its
courses, programs, services, and activities. If you have a documented disability and would like to request
accommodations in order to access course material, activities, or requirements, please contact the
Director of Disability Services, Lynne Davies, by phone (361-1227) or e-mail daviesl@etown.edu. If your
documentation meets the college’s documentation guidelines, you will be given a letter from Disability
Services for each of your professors. Students experiencing certain documented temporary conditions,
such as post-concussive symptoms, may also qualify for temporary academic accommodations and
adjustments. As early as possible in the semester, set up an appointment to meet with me, the
instructor, to discuss the academic adjustments specified in your accommodations letter as they pertain
to my class.
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SCHEDULE (tentative)
Week of Aug 25 (week 1):
Introduction: The Ordinary Business of Life
Chapter 1: First Principles
Week of Sept 1 (week 2):
Chapter 2. Economic Models: Trade-offs and Trade
Chapter 2 Appendix. Graphs in Economics
Week of Sept 8 (week 3):
Chapter 3. Supply and Demand
Week of Sept 15 (week 4):
Chapter 4. Price Controls and Quotas: Meddling with Markets
Chapter 5. International Trade
Exam 1 on Tue, Sept. 16
Week of Sept 22 (week 5):
Chapter 6. Macroeconomics: The Big Picture
Week of Sept 29 (week 6):
Chapter 7. GDP and CPI: Tracking the Macroeconomy
Week of Oct 6 (week 7):
Chapter 8. Unemployment and Inflation
Week of Oct 13 (week 8):
Chapter 9. Long-Run Economic Growth
Week of Oct 20 (week 9):
Chapter 10. Savings, Investment Spending, and the Financial System
Week of Oct 27 (week 10):
Chapter 11. Income and Expenditure
Exam 2 on Tue, Oct. 28
Week of Nov 3 (week 11):
Chapter 12. Aggregate Demand and Aggregate Supply
Week of Nov 10 (week 12):
Chapter 13. Fiscal Policy
Chapter 13 Appendix: Taxes and the Multiplier
Week of Nov 17 (week 13):
Chapter 14. Money, Banking, and the Federal Reserve System
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Week of Nov 24 (week 14):
Chapter 15. Monetary Policy
Week of Dec 1 (week 15):
Chapter 17. Crises and Consequences
Final exam on Tue, Dec. 9
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