Department of Economics
Syllabus for Economics 202.01 10:50am
Summer Quarter 2009
Instructor Information
Prof. D.W. Hedrick
Office: Shaw-Smyser 420, 963-2426, dhedrick@cwu.edu,
Office Hours: M & F 10:00-11:00 a.m. and T & TH 3:00-3:30 p.m. and by appointment.
Web Page: 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.
Statement of Purpose
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.
Course 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
Textbook
The textbook and homework assignments are available online through Aplia. See
instructions below for registration and payment.
Required: (1) On-line Mankiw, N. Gregory, Principles of Macroeconomics Economics,
5th Edition, Thomson – SouthWestern, c2008,
(2) Aplia – An internet-based tutorial and homework problem that will be used for the
required homework. See sign-up instructions below.
(3) Hakes, David , Study Guide to Accompany Principles of Economics. Buy on-line.
Suggested Reading: The Wall Street Journal and the Economist
Course Requirements
By virtue of enrollment in a College of Business Course class, all students are required to
commit themselves to learning the material and to acting in a civil manner in class and be
respectful of their peers and the professor. Behaviors contrary to the above will result in
disciplinary action and possible expulsion from the class. Attendance is grades.
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 six mini, attendance, and Aplia homework. Makeup miniexams will only be given for emergencies and require a note signed by a physician or
by a senior officer in Student Affairs.
Mini-exams will each Friday at the end of class. Each mini-exam will count for 100
points. If one takes all the mini-exams AND one receives above 65% on the last miniexam (one cannot skip the last one), the lowest mini-exam will be dropped.
Each week online homework sets will be assigned using the innovative online service
provided by Aplia. Using the code given above students will setup an individual Aplia
account (go to http://www.aplia.com). The first assignment includes a tutorial on
mathematics and graphing that begins with a pretest and ends with a posttest. Prior to
subsequent assignments, students will have the opportunity to take an practice (not
graded) assignment. 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 highspeed internet connection are encouraged to use the CWU computer labs. The schedule
for the computer labs can be viewed at http://www.cwu.edu/~labstats/AllLabHrs.html.
The lowest 4 homework assignments will be dropped and the remaining homework
assignments will count for 300 points.
Course Grading
Based upon the percentage of the 1000 (900 with drop) possible points from mini-exams,
and Aplia homework. The following scale will be used to determine the final grade:
A
>=93%
A>=90% and <93%
B+
>=87% and <90%
B
>=83% and <87%
B>=80% and <83%
C+
>=77% and <80%
C
>=73% and <77%
C>=70% and <73%
D+
>=67% and <70%
D
>=63% and <67%
D>=60% and <63%
F
<60%
Course Outline (Subject to change as circumstances indicate)
Topic
I. Introduction to Macroeconomics and Brief Review
of Microeconomics
Circular Flow
Review of Micro
II. The Data of Macroeconomics
National Income
Cost of Living
III. The Real Economy: Long-Run Analysis
Production and Growth
Saving and Investment
Basic Tools of Finance
Unemployment and Its Natural Rate
IV. Money and Prices: Long-Run
The Monetary System
Money Growth and Inflation
V. The Macroeconomics of Open Economies
Basic of Open-Market Macroeconomies
Theory of Open Economies
VI. Short-run Fluctuations
Aggregate Demand and Supply
Monetary and Fiscal Policy
Inflation and Unemployment: Short-run
VII. Controversy in Macroeconomic Policy
Text Chapter(s)
Split
10
1-8
10
11
12
13
14
15
16
17
18
19
20
21
22
Debates about Macroeconomic Policy
23
Miscellaneous
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
suggest 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.
The classroom should be a productive, pleasant, and interesting learning environment.
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 from eating, yawning noisily, and conversing with colleagues
during class. Disrupting the class will not be tolerated.
Students with Disability
Students with disabilities who wish to set up academic adjustments in this class should
give the professor a copy of their “Confirmation of Eligibility for Academic
Adjustments” form from the Disability Support Services Office at the beginning of the
course. Appropriate accommodation will be determined. Students with disabilities
without this form should contact the Disability Support Services Office, Bouillon 205 or
dssrecept@cwu.edu or 963-2171.
The above schedule and procedures in this course are subject to change and will be
announced by the professor.
Student Registration and Payment
Instructions
Course Name: Hedrick, Macroeconomics (Mankiw 5e), Summer 2009
Start Date: 06/22/2009
Instructor: Prof. Hedrick
Course Key: B6PV-SS2M-JKAB
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: B6PV-SS2M-JKAB. 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:
B6PV-SS2M-JKAB. 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 07/01/2009.
Payment
Option 1: Digital Textbook with Aplia Access
• From Aplia: Purchase access to your course from Aplia's website for $80.00 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 $80.00 USD and a physical book for $45.00
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.