ECONOMICS 2210 – DR. HIPPLE

PRINCIPLES OF MACROECONOMICS

FALL 2017 INFORMATION SHEET

INSTRUCTOR INFORMATION:

Dr. F. Steb Hipple, Professor of Economics (Ret)

Office -- Room 304, Sam Wilson Hall

Phone/Voicemail -- 423.439.5304

Email -- hipples@etsu.edu

Website -- http://faculty.etsu.edu/hipples

Office Hours – after class meetings and by appointment.

DEPARTMENT INFORMATION:

Department of Economics and Finance

Office -- Room 227, Sam Wilson Hall

Phone -- 423.439.4202

CLASS MEETING TIMES:

ECON 2210-001 Tuesday-Thursday

12:45pm-2:05pm, Sam Wilson Hall, Room 302

PRINCIPLES OF MACROECONOMICS:

· Counts toward the social science component of the ETSU General Education Program.

· Is a required course in the business core curriculum of the College of Business and Technology.

TEXTBOOK:

R. Glenn Hubbard & Anthony Patrick O’Brien, Macroeconomics, 6/E, Pearson, 2017.

ON-LINE MATERIALS:

MyEconLab (MEL) to accompany Hubbard & O’Brien, Macroeconomics, 6/E.

COURSE CATALOG DESCRIPTION:

An introduction to macroeconomic analysis which concentrates on economy wide, systematic issues such as inflation, unemployment, and the level of economic activity.

LEARNING OBJECTIVES: At the end of this course, you will be able to:

• Demonstrate knowledge of the basic principles of economics, including the problem of scarcity, the significance of opportunity costs, and the difference between normative and positive economics Monitor the functioning of the macroeconomy using business indicators such as gross domestic product, employment, unemployment, and the inflation rate.
• Use supply & demand analysis to demonstrate the effect of various events on price and quantity traded in product, factor, and financial markets.
• Monitor the functioning of the macroeconomy using business indicators such as gross domestic product, employment, unemployment, and the inflation rate.
• Describe the functioning of the long run real economy, including factors that determine full employment, savings, investment, economic growth, and higher standards of living.
• Describe the structure and functioning of the financial system, including how banks create money, the operation of the Federal Reserve System, and how the Federal Reserve conducts monetary policy.
• Use a basic aggregate supply – aggregate demand model to explain economic fluctuations (the business cycle) and describe appropriate government responses to cyclical fluctuations.
• Describe the linkages of the domestic economy to the global economy through international trade, international investment, and exchange rates.

COURSE SYLLABUS:

PART 1 INTRODUCTION

Chapter 1. Economics: Foundations and Models (41 homework exercises)

Appendix. Using Graphs and Formulas

Handout. The Economic Problem and Economic Systems

Chapter 2. Trade-offs, Comparative Advantage, and the Market System (15)

Quiz #1. (Tuesday, September 12)

Handout. Variables and Relationships

Chapter 3. Where Prices Come From: The Interaction of Demand and Supply (21)

PART 2 FIRMS IN THE DOMESTIC AND INTERNATIONAL ECONOMIES

Chapter 6. Firms, the Stock Market, and Corporate Governance (16)

Quiz #2. (Tuesday, September 26)

Appendix. Tools to Analyze Firms’ Financial Information

Chapter 7. Comparative Advantage and the Gains from International Trade (19)

PART 3 MACROECONOMIC FOUNDATIONS AND LONG-RUN GROWTH

Chapter 8. GDP: Measuring Total Production and Income (20)

Quiz #3. (Tuesday, October 10)

Chapter 9. Unemployment and Inflation (21)

Handout. The Business Cycle and Economic Indicators

Chapter 10. Economic Growth, the Financial System, and Business Cycles (17)

Quiz #4. (Thursday, October 26)

Chapter 11. Long-Run Economic Growth: Sources and Policies (16)

PART 4 SHORT-RUN FLUCTUATIONS

Chapter 13. Aggregate Demand and Aggregate Supply Analysis (9)

Appendix: Macroeconomic Schools of Thought

PART 5 MONETARY AND FISCAL POLICY

Handout. The Financial Markets

Quiz #5. (Thursday, November 9)

Chapter 14. Money, Banks, and the Federal Reserve System (17)

Handout. Monetary vs Fiscal Policy

Chapter 15. Monetary Policy (24)

Quiz #6. (Tuesday, November 28)

Chapter 16. Fiscal Policy (20)

Appendix. A Closer Look at the Multiplier

PART 6 THE INTERNATIONAL ECONOMY

Chapter 18. Macroeconomics in an Open Economy (13)

Chapter 19. The International Financial System (6)

Appendix. The Gold Standard and the Bretton Woods System

Quiz #7. (see exam week schedule)

Comprehensive Make-Up Quiz. (see exam week schedule)

OMITTED TEXTBOOK MATERIALS

Chapter 4. Economic Efficiency, Government Price Setting, and Taxes

Appendix. Quantitative Demand and Supply Analysis

Chapter 5. The Economics of Health Care

Chapter 12. Aggregate Expenditure and Output in the Short-Run

Appendix. The Algebra of Macroeconomic Equilibrium

Chapter 17. Inflation, Unemployment, and Federal Reserve Policy

EXAM WEEK SCHEDULE:

ECON 2210-001 – (Quiz #7 and Comprehensive Make-Up Quiz)

Thursday, December 14, 1:20pm-3:20pm

CLASS MEETINGS: Classes will begin Monday, August 28, and end Thursday, December 7. Holidays are Labor Day (Monday, September 4), Fall Break (Monday and Tuesday, October 16 and 17), and Thanksgiving (Wednesday,Thursday, and Friday, November 22, 23, and 24). There are a total of 28 scheduled class meetings on Tuesdays and Thursdays. We will return during exam week for the last two quizzes.

NOTE ON TEXTBOOK AND ON-LINE MATERIALS: This course requires you to enroll in MyEconLab (MEL) from Pearson Education. You may purchase a textbook package from the ETSU bookstore which will include an access kit with the registration information. Or, if you purchase a textbook without the access kit, you can directly enroll in MyEconLab on the internet. MEL registration will be closed after September 30.

PREPARATION: Assigned chapters should be carefully read before class meetings. Class lectures will focus on the theoretical and quantitative aspects of the textbook material.

HOMEWORK ASSIGNMENTS: The homework assignments are a very critical element in this course. There will be a Homework Assignment in MEL for each Hubbard & O’Brien chapter that we cover. The number of exercises is shown in parenthesis after each chapter title in the syllabus. You can work on the homework assignment until your score is 100%, and the homework exercises will be your guide to mastery of the chapter material. You should complete each homework assignment before the quiz, and not be satisfied with any score less than 100%. As an incentive, for each set of completed homework assignments with a score of 100%, five bonus points will be added to the quiz score. In addition, your semester average on homework assignments will count as one-seventh of your semester grade, so you should do all of the homework assignments. (MEL also includes Study Plan and Sample Quizzes for each chapter. You may use these for self study, but they do not contribute to your semester grade.)

EXAMINATIONS: Eight quizzes will be given during the semester. There will be seven regular quizzes plus the comprehensive make-up quiz. Your semester grade will be based on your six best quiz scores (plus your homework average). You may miss or drop up to two quizzes. The quiz format will be multiple choice questions based on lecture, handouts, assigned chapters, MEL homework, and class discussions.

GRADING: Your semester grade will be based on your six best quiz scores and your homework average. The grade scale is: "A" = 90 to 100; "B" = 80 to 89; “C” =70 to 79; and etc. If the class average is below 80, then the letter ranges will be adjusted accordingly. For example, if the class average is 75, then the letter ranges are: “A” = 85 and above; “B” = 75 to 84, “C” = 65 to 74; and etc. Plus and minus grades will be assigned at the end of the semester and show strong or weak performance within the letter range.

WEBSITES: This class will have three websites. (1) My website at http://faculty.etsu.edu/hipples. This website will include the syllabus, handouts, and announcements. (2) The class website at http://www.pearsonmylabandmastering.com will contain the homework exercises. (3) The University D2L site will not be used for this class.

ATTENDANCE: Class attendance is expected, and can actually help you get better grades!

HELP: I will have regular office hours to meet with you, or by appointment. Please feel free to ask questions. Contact me if you need help on your reading assignments or problems. Have a good semester!