Economics 202
Principles of Macroeconomics
Winter 2009 8 and 9 a.m.
Instructor:
Office:
Telephone:
Office Hours:
Web Page:
D.W. Hedrick
Shaw-Smyser 424
963-2426
M and F 10:00-11:00 a.m. and T and TH 2:303:30 and by appointment.
www.cwu.edu/~dhedrick/
COURSE DESCRIPTION:
This course provides an introduction to the organization of the U.S. economy, long-run economic
growth and short-run economic fluctuation, the structure and role of the monetary system, the
problems of unemployment and inflation, and the overall impact of government spending and
taxation on the macroeconomy.
COURSE OBJECTIVES:
The principal objectives of the course are to provide students with an understanding of the
macroeconomy. Students will become familiar with basic forces behind economic growth and
short-run fluctuations in market economies and the basic techniques of modeling overall
economic activity. They will develop an appreciation for the challenges economists and
policymakers face in using monetary and fiscal policies to alter short-run economic performance
and to create policies to help foster long-run economic growth. Students will also be introduced
to the importance and the impacts of international trade and finance in modern market
economies.
TEXTBOOK:
The textbook and homework assignments are available online through Aplia. See instructions
below for registration and payment Click Here.
Required:
(1) On-line Mankiw, N. Gregory, Principles of Macroeconomics Economics, 45d
Edition, Thomson – SouthWestern, c2008, or Mankiw, N.
Gregory, Principles of Macroeconomics, 3rd Edition, Thomson – SouthWestern,
c2004
(2) Aplia – An internet-based tutorial and homework problem that will be used for
the required
homework.
Course Key: T4LZ-EQ9E-JXVS
(3) Hakes, David , Study Guide to Accompany Principles of Economics. Buy online.
Suggested Reading: The Wall Street Journal and the Economist
LEARNING OUTCOMES:
1. Apply graphing skills to analyze macroeconomic models. These skills include an
understanding of slope and its computation, curve shifts and movements along a curve, and
the ability to draw inference from graphs.
2. Utilize quantitative techniques in the analysis of macroeconomic models. These techniques
include manipulating and solving simple linear systems of equations, and computing growth
rates.
3. Apply economic theory to contemporary macroeconomic policy issues.
4. Identify, explain trends in, and explain the relationships between the following
macroeconomic variables:
 GDP (real and nominal)
 Sources of economic growth (including capital accumulation, technological
innovation, and productivity growth)
 Inflation
 Unemployment
 Fiscal policy (including government spending, taxation, budget deficits, and national
debt)
 Monetary policy (including money supply, interest rates, and the structure of the U.S.
banking system)
 Consumption spending, saving, wealth, and investment
 Exchange rates, exports, and imports
COURSE OUTLINE:
Topic
Text Chapter(s)
I. Introduction to Macroeconomics and Brief Review
Split
Of Microeconomics
Circular Flow
10
Review of Micro
1-8
II. The Data of Macroeconomics
National Income
10
Cost of Living
11
III. The Real Economy: Long-Run Analysis
Production and Growth
12
Saving and Investment
13
Basic Tools of Finance
14
Unemployment and Its Natural Rate
15
IV. Money and Prices: Long-Run
The Monetary System
16
Money Growth and Inflation
17
V. The Macroeconomics of Open Economies
Basic of Open-Market Macroeconomies
18
Theory of Open Economies
19
VI. Short-run Fluctuations
Aggregate Demand and Supply
20
Monetary and Fiscal Policy
21
Inflation and Unemployment: Short-run
22
VII. Controversy in Macroeconomic Policy
Debates about Macroeconomic Policy
23
RECOMMENDED STUDY HABITS:
Economics is a challenging subject for most and requires significant study to successfully master
and apply economic concepts. I suggest that you read, or at least skim, the chapters in the text
before they are covered in class. As soon after class as possible, I recommend you retire to a
quiet place and reread the text and recopy the lecture notes. This will help reinforce what you
have learned and point out areas that you need clarified.
Feel free to ask questions in class. Remember, “There is no such thing as a dumb question.”
Also, please make use of office hours, particularly when you need a bit more help understanding
the material.
ASSESSMENT AND EVALUATION:
Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative
analyses of contemporary macroeconomic policy issues, as well as an understanding of the
variables listed in outcome #4.
Grades will be based on twice-weekly online homework assignments, weekly quizzes, three midterm examinations, and an optional comprehensive final examination. Important: No makeup
quizzes will be given for any reason. Makeup midterms and finals will only be given for
emergencies and require a note signed by a physician or a senior officer in Student Affairs.
Satisfactory performance on these assessment tools entails graphical, qualitative, and quantitative
analyses of contemporary macroeconomic policy issues, as well as an understanding of the
variables listed in outcome #4.
The initial Aplia assignments include a tutorial on mathematics and graphs. Please read the
section on Grade It Now in the introductory assignment. Aplia allows students three
opportunities to answer a question with explanation provided when a wrong answer is given. Full
credit is given if the first response is correct. The partial credit formula is described in Aplia.
The Aplia program is self-contained and includes 24 hour online and toll-free telephone support.
Students who do not have computers at home or a high-speed internet connection are encouraged
to use the CWU computer labs. The schedule for the computer labs can be viewed at
http://www.cwu.edu/~r25/its_labs.html . The lowest 4 homework assignments will be dropped
and the remaining homework assignments will count for 100 points.
A total of seven weekly quizzes will be given on Friday, excluding the weeks of midterms, the
first week of class, and during Thanksgiving Holiday (quiz on Wednesday Nov. 21). Each quiz
will count for 20 points and the lowest two quizzes will be dropped. The total points from
quizzes will be 100 points. 0Three midterm examinations will be given. The midterms dates are
Friday, January 30; Friday, February 20 (deadline for uncontested withdraw); and Friday,
March 6. If you cannot attend class on these dates, drop the class and take it at another
time. Each midterm will count for 100 points.
An optional comprehensive final examination will be given. The optional final will count for
100 points and be used to replace the lowest midterm score. The final dates are: 8:00 am
Section - Friday, March 20, 8:00 -9:30am; and 9:00 am Section -Wednesday, March 18,
8:00 -9:30 am.
NO early or makeup finals will be given.
GRADING:
Grades are based upon the percentage of the 500 possible points from homework, quizzes,
midterms and the optional final. The following scale will be used to determine the final grade:
A
AB+
B
BC+
C
CD+
D
DF
>=93%
>=90% and <93%
>=87% and <90%
>=83% and <87%
>=80% and <83%
>=77% and <80%
>=73% and <77%
>=70% and <73%
>=67% and <70%
>=63% and <67%
>=60% and <63%
<60%
WELCOME:
The classroom should be a productive and interesting learning environment, but I need your
help. As a consideration to your classmates, please make an effort to be on time. If you do
arrive after the lecture has begun, a quiet entrance would be greatly appreciated. In addition,
please refrain eating noisily during class.
Students with disabilities who wish to set up approved academic adjustments for this class
should schedule a meeting with the professor as soon as possible. Please provide the professor
the “Confirmation of Eligibility for Academic Adjustments” provided by the Disability Support
Services Office. Students with disabilities without the confirmation should contact the Disability
Support Services (DSS) Office, Bouillon 205 (dssrecept@cwu.edu , 963-2171). Students who
believe they may be affected by a disability are also encouraged to contact the DSS office.
Student Registration and Payment Instructions
Course Name: Principles of Macroeconomics (Mankiw 5e) Winter 09
Start Date: 01/06/2009
Instructor: Prof. Hedrick
Course Key: T4LZ-EQ9E-JXVS
You can begin working on your homework as soon as you register!
• In this course, you will use a textbook and Aplia's website.
• In most cases, you can save money if you buy Aplia and your textbook together. See
payment options below.
• You will have access to a digital version of your textbook using Aplia.
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: T4LZ-EQ9E-JXVS. 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: T4LZ-EQ9E-JXVS. 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 01/25/2009.
Payment
Option 1: Digital Textbook with Aplia Access
• From Aplia: Purchase access to your course from Aplia's website for $70.00 USD.
• From Bookstore: Purchase an Aplia Access Card from your campus bookstore.
Option 2: Physical Textbook with Aplia Access (also includes digital textbook)
• From Aplia: Purchase access to your course for $70.00 USD and a physical book for
$50.00 USD from Aplia's website.
* If you purchased an Aplia Access Card from a bookstore, enter the Access Card's payment
code on Aplia's website as payment for your Aplia course.
* You will have access to your digital textbook up until the end of this course.