Principles of Macroeconomics

Economics Department
Course Syllabus

 Course Title:  Principles of Macroeconomics (50:220:103:01), Index number (05986)

Prerequisites:  None

Day Time Place: Tuesday and Thursday (8:00 AM to 9:20 AM) ATG, Room 221

Instructor: Robert Vaden
Email: robert.vaden@rutgers.edu  
Phone: (856) 582-9325

Required Texts: Macroeconomics. Campbell McConnell, Stanley Brue, and Sean Flynn; 20th Edition, McGraw-Hill. (Paperback)         

Note: Reading and studying the text are very important for learning and understanding the course material.  There is no substitute for spending a significant amount of time reading and studying the assigned chapters.  Also, following current economic events and developments will be useful in learning and understanding the course material.  

Recommended Reading: The student should supplement the course material with readings from the following as time permits: The Economists (a British weekly),  The Wall Street Journal,  The New York Times Business Section,.  

Course Catalog Description:  National income and how it is determined; consumption, investment, and government spending; the monetary system; control of inflation and unemployment; international exchange; alternative economic systems 

Course Overview
This course is the introductory course in macroeconomics.  The course introduces and covers in detail traditional macroeconomic topics such as economic growth, the business cycle, unemployment, inflation, and the national income and product accounts, which include Gross Domestic Product (GDP).

The course will begin with a formal introduction to the study of economics and a discussion of the strengths and limitation of a market or capitalistic economy.  The role of supply and demand in a market economy will be covered in this part of the course. 

We will also discuss in detail monetary and fiscal policy and their effectiveness in combating  the most recent recession. Key current economic issues such as  the nation’s large national debt, the factors contributing to it, and the long-term outlook for the national debt will also be covered.   Topics will also include the slow economic recovery from the last recession, and issues related to the Federal Reserve Board and monetary policy.   We should also note that a presidential election will provide the background for a timely discussion of economic issues and many topics covered in macroeconomics. 

Course Objectives

  • Introduce the student to the formal study of economics and show the student how an understanding of economics can help them in day-to-day living and in understanding the world around them.
  • Provide a detailed study of the major topics in macroeconomics.
  • Provide the student with the knowledge of data sources of key economic data such as the national income and product accounts, which include GDP, labor force statistics, and information on the business cycle.
  • Provide the student with the knowledge and understanding to use key economic statistics, such as the unemployment rate, the inflation rate, etc. appropriately. The student will recognize the strengths and limitations of these key economic variables.
  • Improve the student’s understanding of current economic trends and events and how they impact the nation’s politics.  
  • Promote a lasting student interest in economics and the economy.

Grades:  There will be two tests and a final exam.  Note that all tests and the final exam are cumulative. This means that each test and the final exam will include all material covered to date. In calculating your final grade, each of the three exams will make up one-third of the course grade.  

“Pop” quizzes or class exercises will be given.  These exercises can only help but cannot hurt your final grade.

Final grades will be assigned as follows: 
90+=A;
84-89=B+; 
78-83=B; 
72-77=C+; 
66-71=C;
60-65=D;  less than 60 =F. 

Make-up tests will be given on an individual basis. All make-up tests must be taken within two weeks of the scheduled exam date.  It is the student’s responsibility to arrange and schedule a make-up exam when required.

No electronic devices may be used during exams.  When taking an exam, the only material the student is allowed are the answer sheet, the exam, and a writing instrument.  There should be no communications between students during exams.  

Class participation is welcomed, encouraged and will be considered in your final grade.

Attendance:   Attendance is strongly encouraged. However, you are allowed four (4) absences. The student is responsible for all material missed when absent.   

Office Hours:  Office hours are after class each day until 11:00 AM.   Please see me to schedule an appointment.

Electronic Devices
No electronic devices of any type are allowed in class.  Cell phones should be turned off prior to the start of class.  Use of laptops, cell phones, ipods, etc. is not acceptable.    

A failure to adhere to this rule will result in the student being dismissed from class and marked as absent. 

Course Outline
The schedule outlined below is a general guideline and is subject to change.

Week of

 

Chapter

Topic

Sept. 6

 

1

Introduction and Overview 

Limits/Alternatives/Choices

Sept. 12

2

The Market System and the Circular Flow

Sept. 19

3

Demand, Supply, and Market Equilibrium

Sept.26

3

6

Demand, Supply, and Market Equilibrium,continued   

An Introduction to Macroeconomics

Oct, 3

 

Review/ EXAMINATION I 

Oct. 10

7

Measuring Domestic Output and National Income

Oct. 17

7

9

Measuring Domestic Output and Inflation (continued)

Business Cycles, Unemployment, and Inflation

Oct. 24

9

10

 

Business Cycles, (continued)                            

Basic Macroeconomic Relationships

Oct. 31

 

Review/   EXAMINATION II  

Nov. 7

12

Aggregate Demand and Aggregate Supply

Nov.14

 

12

Aggregate Demand and Aggregate Supply, continued

Last Word: Say’s Law, the Great Depression, and  Keynes. (End of chapter 11)          

Nov. 21

13

Fiscal Policy, Deficits, and Debt     Thanksgiving Week  

Nov. 28

14

The Federal Reserve and Monetary Policy (Handouts and select readings from texts)

Dec. 5

 

Dec. 12

15

The Federal Reserve and Monetary Policy, continued

 

Macroeconomic Trends (a discussion)

 

Review and Discussion of National Economic Trends

 

 

          FINAL EXAM: DATE TO BE DETERMINED

. 

 

 

 

Macroeconomics

Fall, 2016

End of Chapter Discussion/Review Problems

By Chapter

 

We will go over the problems listed below at the end of each chapter.  The problems will not be taken up but you should work these problems before class as a learning exercise.  Doing these exercises will provide useful feedback in terms of your understanding of the material.  

 

Chapter

Discussion

Review

1

1, 2, 3, 4, 6, 8, 11

1, 2, 3, 6, 7

2

1, 2, 4, 5, 6, 7, 9, 13

3, 4, 6

3

1, 2 ,3 ,4 ,5 ,6, 7

1, 2, 3, 4 ,5

6

1, 2, 3, 4, 5,  8

1, 2, 3, 4, 5

7

1, 2 ,3, 4, 5, 6, 7, 8, 9, 10, 12

1, 2, 9

8

1, 2, 3, 4, 5, 6, 7, 8, 9

1, 3, 4, 6, 7, 8.

9

1, 2, 3, 4, 5, 6, 7, 8, 9, 11

1, 2, 3, 4, 5, 7, 8, 9

10

1, 2, 3, 4, 5, 6, 7, 8

2, 3, 4, 5, 6, 7, 8, 9

12

1, 2,4,6, 7,8, 9

2, 4, 6

13

1, 2 ,4, 7, 8,  9

3, 6