BADM 201 PRINCIPLES OF MACROECONOMICS

Summer I, 2006
Dr. Stephen Silver
Office: Bond Hall 358
Tel: Office - 953-5163; Home - 766-9943
Hours: Monday - Thursday 11:30 - 12 and by appointment
SYLLABUS

COURSE OBJECTIVES:
To communicate the essence of macroeconomics, so that the student will understand how macroeconomic policy decisions affecting fiscal and monetary aggregates affect the U.S. economy and thereby the performance potential of U.S. firms.  Emphasis will be placed on the various views on the mechanisms and effectiveness of governmental macroeconomic policy.

The course will comprise four sections and a test will be given at the end of each.  There will be no final Exam.

Part I.  Fundamental concepts of economics: Economic way of thinking; opportunity cost; economic costs vs. accounting costs; role of  profit; supply and demand.

Part II.  Gross Domestic Product accounting - national income and product accounts (NIPA).  The composition of GDP; measurement of components; levels of government and their roles.

Part III.  Fiscal and Monetary Policy.  How governments raise revenues and spend; effects of fiscal policy on GDP; Keynesian multiplier.  How monetary policy is conducted; the Federal Reserve System; the money multiplier.

Part IV:  Effectiveness of monetary and fiscal policy.  Various views - Keynesian, monetarist, rational expectationist (real business cycle).  Policy prescriptions of each group.  Time permitting, the international effects of government policy on international competitiveness of U.S.

TEXT & OTHER READINGS
1) Required text is McConnell and Brue, Economics, latest Edition.
2) The Study Guide to the text above is optional, if available.

COURSE DESCRIPTION
Macroeconomics is the study of broad economic aggregates as compared with microeconomics, which deals with individual markets and economic units. In this course, we will define these economic aggregates, such as GDP and its components, and learn some of the economic theories used to explain fluctuations in these aggregates. Unlike microeconomic theory, on which there is broad consensus of opinion, there are several different views of macroeconomic theory and of the causes of the so-called business cycle.


 

GRADING
In addition to four sectional tests there will be several homework/mini-projects, many of which will require the use of the computer. Grading will be approximately as follows:
 
Each Test (Total of 4)
20%
80%
Homework & Projects
15%
15%
Participation
5%
5%
Total
100%

macrovar.htm This is the file you need for your Macroeconomic Variables project.

  Outline of Course by Week

WEEK TOPIC CHAPTER
1

Introduction to Economics: the economizing problem; supply and demand in markets. Pure capitalism and the market system; mixed economy and the role of government; the United States in the global economy.

1-6
  TEST I  
2 - 3 Measuring domestic product, income and the price level; unemployment and inflation; the aggregate expenditure model. The Keynesian multiplier and government fiscal policy; aggregate demand and supply. 7 - 12

TEST 2
3 - 4 Banks, money creation and monetary policy. Alternative macroeconomic views and policy debates; economic growth. 13 - 19
 

TEST 3

 10-12
5 International trade; international finance; Growth and LDC's; transition economies. 37-40
 

TEST 4

  

  - If you need accommodations because of a disability, please inform me immediately.  Please see me privately after class, or at my office to request academic accommodations (for example, a note-taker).  Students must also register with Academic Support, 363 Bond Hall, 953-1821. It is the campus office responsible for reviewing documentation provided by students requesting academic accommodations, and for accommodations planning in cooperation with students and instructors, as needed and consistent with course requirements.