Principles of Macroeconomics (EC2105)
Dr. Susan Laury

slaury@gsu.edu, 404-651-2618
Room 436 School of Policy Studies Building ( 14 Marietta St.)

This syllabus contains important information about this class including: exam dates and coverage, class policies, and information on how to get in touch with me.  You are responsible for reading this syllabus and understanding the information contained in it.

To ensure that you understand the information contained in this syllabus, you must complete and pass a quiz on Web-CT.  (The quiz is located in the “Syllabus Quiz” link on the Web-CT home page.) You can refer to this syllabus when you take the quiz, but you are expected to take it on your own.  You can take it as many times as necessary until you get 90 percent of the questions correct.

This quiz will count the same as an in-class quiz, and the score may NOT be dropped.  (You can take it as often as you like, if you want to improve your score.  The score you receive the last time you take this quiz is the one that I will record at the end of the semester.)

This quiz is NOT optional, and I encourage you to take it as soon as it is posted.  The quiz will be available on Web-CT from Tuesday Aug. 31 through Tuesday Sept. 14.  If you do not score at least 90 percent on the quiz by Tuesday, Sept. 14 you will be dropped from the course.

This syllabus provides a general plan for the course; deviations may be necessary.

Office Hours:  I don’t hold regularly-scheduled office hours, but I’m available by appointment.  Email is usually the best way to reach me to schedule an appointment.

Prerequisite:  Math 1111 (College Algebra) – take this seriously.  You will use algebra regularly.

Course Objective:  This course provides an introduction to the structure of the national economy and how government policy can affect it.  The focus will be on issues facing the United States , although many of the topics could be easily applied to other countries.  We will study the determinants of national output growth, inflation, unemployment, and how policy can affect these variables.

Method of Instruction:  Lecture, class discussion, quizzes, examinations

Textbook and Other Resources:

Textbook:  Economics by David C. Colander (5th edition)

Recommended Web Text:  http://www.econweb.com (the basic 6-month subscription is $9.95).  This is a terrific resource that a lot of students have found useful.

WebCT:

I make extensive use of WebCT. You should check my WebCT site on a regular basis for announcements, handouts, assignments, and quizzes.  If I post any information or handouts on WebCT at least 24 hours before class, then you are responsible for this information.

I also post copies of exams and practice questions from past semesters.  If you are looking for resources to help you study, you should start here.  One word of caution: if you have copies of my old exams and practice questions from other sources, you should use those posted on my WebCT site instead. My coverage of the material has changed over time, and these changes are reflected on the exams or practice questions that I have posted on WebCT.

Evaluation:

All exam dates are listed below.  No makeup exams, quizzes, or problem sets will be given under ANY circumstances!  The information below explains how I handle any missed quizzes, assignments, and exams.

Grades are based on:
Three in-class exams (55%)
Final exam (30%)
Online quizzes (10%)
In-class quizzes (5%)

In-class quizzes will count for 5 percent of your grade.  I will give between 6 and 8 short in-class quizzes.  The dates for the quizzes will not be announced in advance.  Missed quizzes are scored as a zero; your highest 5 scores will be averaged for this part of your grade.

I will also post occasional quizzes on WebCT, which will count for 10 percent of your grade.  I will announce these quizzes during class, and on WebCT. Quizzes will cover class material and also material that I have posted on the Web.  The quizzes will be posted by the end of the day on Thursday, and must be completed by 9 a.m. on Tuesday morning.  Your lowest two scores will be dropped, and all remaining grades will be averaged to obtain your score for this part of the course.  You will have at least four full days to take any online quizzes.  Therefore, unlike my policy for in-class quizzes, missed online quizzes will be scored as a zero, and will NOT be dropped.  Don’t wait until the last minute to complete the online quizzes – computer problems are NOT an excuse for missing an online quiz.

There will be three in-class exams, and a cumulative final exam given during the regular final exam period.  The in-class exams are worth 55% and the final is worth 30%.  Your lowest-scoring test is worth 5%, and your remaining two in-class exams are worth 25% each.

If you miss one in-class exam, your score on the final exam will substitute for the missed exam.  If you miss any additional in-class exams, your score on the final will substitute for the additional missed exam.

You can NOT “drop” a test after taking it and doing poorly.  No exceptions.  Nor do I offer extra credit on an individual basis.  I will never offer one student an opportunity that I do not provide to the entire class.

I do, however, offer everyone a reward for improvement on the final exam.  If your final exam grade is higher than at least one of your in-class exams, I will add an improvement bonus to your final exam score.  This bonus will be equal to 1/5 of the difference between your final exam score and your lowest exam score.  For example, if you receive an 80 on the final exam, and your lowest in-class exam score was a 60, your improvement bonus would be calculated as: (80 – 60)/5 = 4 points.  I would therefore enter (80 + 4) = 84 in my grade book as your final exam score.  (If you missed one or more in-class exams, this improvement bonus is NOT included where your final exam score substitutes for the missed exam; continuing with the example above, if you missed one in-class exam, your raw score on the final (80) will substitute for the missed exam.)

You may NOT miss the final exam, or take it at any time other than the scheduled final exam time.  If you miss the final for ANY reason (other than a documented medical illness that prevents you from taking the exam, or a death in your immediate family) you will receive a grade of 0 for the final exam. Don’t even ask me to make an exception – the answer will be a definite no.

Calculators: You cannot use programmable calculators during exams or quizzes. Both Staples and Office Depot sell several inexpensive calculators (less than $5) that will work fine for this class.

Grading:  I do not "curve" grades into a bell-shaped distribution, but will add "mercy points" to all exam scores in order to bring the average grade on any exam up to a C.  The following grading scale will be employed:

          A (90% - 100%), B (80% - 89%), C (70% - 79%), D (60% - 69%), F (0 - 59%)

Your grade will be determined by calculating the percentage of the possible points that you earned during the semester.  Any fraction greater than or equal to 0.5 rounds up, all others round down.  For example, a final weighted average of 79.5 rounds to 80, which is a B; a 79.4 rounds to 79, which is a C.

Grades of Incomplete (I): I will assign a grade of Incomplete (I) only if you are unable to take the final exam and you meet the criteria stated above for making up the final exam.  I will not assign an Incomplete under any other circumstances. According to University policy, the Incomplete must be removed by the end of the next semester (if the student is enrolled in that semester), or at the very latest the end of the 2nd academic term after the Incomplete was assigned.  If the Incomplete is not removed by the University deadline, it will automatically be changed to an F.  It is the student’s responsibility to make arrangements to take the make-up final in a timely manner.

Attendance:  Note the following University rule:Effective Fall, 2001, all instructors must, on a date after the mid-point of the course (to be set by the Provost),
1.       Give a WF to all those students who are on their rolls, but no longer taking the class and 2. Report the last day the student attended or turned in an assignment.
Students on financial aid should take note of this as there may be financial consequences if you stop taking the class.  Attendance will be determined based on participation in exams and quizzes given during your break-out section.

Academic Honesty: It is your responsibility to avoid any activity that suggests cheating.  Specifically: talking, passing notes, having crib sheets, using a programmable calculator, or having books or notebooks open during a test are among the activities sufficient to justify a charge of a major violation of the GSU academic dishonesty policy.  Please refer to the University policy on academic honesty, section 409.

Misc. Policies:

Turn off your telephones, pagers, etc. when class begins.

If you must miss a class, get notes from a classmate and check WebCT to see what you missed.

Exam Schedule (all exams are on Thursdays)

Exam 1: Sept. 23 (covers 8/24 – 9/16)
Exam 2: Oct. 28 (covers 9/21 – 10/21)
Exam 3: Dec. 2 (covers 10/26 – 11/18)

Final Exam (Cumulative): Thursday, Dec. 16, 10:15 a.m. – 12:15 p.m  

Tentative Course Outline

This is a general plan for the course; deviations may be necessary.  I typically skip parts of chapters, and my classroom presentation sometimes differs from that in the text book.  In this case, you are responsible for the material as I have covered it in class!  You are not responsible for material that was not covered in class or during your break-out section.

Introduction

Basic Concepts and Math Skills – Chapter 1 (including Appendix A)
Trade. Trade-offs, and Government Policy – Chapter 2

Introduction to Macro Variables and Policy Issues

Growth, Business Cycles, Unemployment and Inflation – Chapter 22
Measuring Gross Domestic Product – Chapter 23
Growth, Productivity, and the Wealth of Nations – Chapter 24

Determining National Income and Production

Aggregate Demand, Aggregate Supply, and Modern Macro – Chapter 25
The Multiplier Model – Chapter 26

Government Policy

Fiscal Policy – Chapter 30
Government Budget – Chapter 31
Money and Banking – Chapter 27
Monetary Policy – Chapter 28
More on Inflation – Chapter 29

International Issues

International Trade and Exchange Rates – Chapter 33
Open Economy Monetary and Fiscal Policy – Chapter 34

Learning Outcomes

By the end of the semester, I expect that you will be able to demonstrate your knowledge of the following topics.  This is not a complete list of the information that you will be required to know for in-class exams and final.  Instead, it represents the basic “core content” for all sections of EC2105.

  1. The student should be able to understand and describe the concepts and measurement of gross domestic product, unemployment, and inflation.
  2. The student should be able to understand and describe the difference between business cycles and economic growth and the factors that contribute to each.
  3. The student should be able to understand and describe the concept of Macroeconomic Equilibrium.
  4. The student should be able to understand and describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and long-run.
  5. The student should be able to understand and describe the multiplier concept, how it is computed, and its qualifications and limitations.
  6. The student should be able to understand and describe the concepts, tools, and implementation of fiscal policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity.
  7. The student should be able to understand and describe the concepts, tools, and implementation of monetary policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity
  8. The student should be able to understand and describe the essential differences that separate and distinguish the Classical and Keynesian Schools in macroeconomics.
  9. The student should be able to understand and describe the arguments pro and con for a policy of laissez-faire versus government activism in the management of macroeconomic policies.
  10. The student should be able to understand and describe the concepts of Comparative Advantage, balance of payments and its components, and the determinants of exchange rates.