|
| |
Approved by Faculty Senate.
University Studies Course Approval
Department or Program: Economics
Course Number:
202
Semester Hours: 3
Frequency of Offering: Every
Semester
Course Title: Principles of Macroeconomics
Catalog Description: National income analysis; aggregate demand and
supply; money and banking;
business cycles; monetary and fiscal
policy.
This is an existing course previously approved by A2C2: Yes
This is a new course proposal: No
Department Contact Person: Gabriel Manrique Email: manrique@winona.edu
University Studies Approval is requested in: The Arts and Sciences Core -
Social Science
Attachments: The attached sample syllabus explains what is typically
covered in this course. It also
points out in which parts of the course the
seven outcomes for social science courses (a-g) are addressed.
The
syllabus is included in this application for purposes of illustration. Each
faculty member is still responsible
for his/her own course syllabus.
As required in points 1 and 2 of the approval process, the following address
the seven outcomes listed for
Social Science courses and documents course
content and learning activities relevant to the course outcomes:
- understand humans as individuals and parts of larger social systems
Economic decisions are assumed to be made by the individual who is treated,
in macroeconomics, as a
member of a household. Such households make their
own consumption and savings decisions. The
individual also makes economic
decisions as part of business entities. Such business entities make their
own decisions regarding production and investment. But individuals
(households) as well as firms do not
operate in a societal vacuum. Indeed,
macroeconomics uses the circular flow model to illustrate the various
ways
individuals are connected to others in society through the operation of
markets, the participation of
government, and the international sector.
Students are expected to understand the multiple roles that they
play in
the society - as buyers of goods and services, as providers of resources, as
tax payers, and as members
of a global society through the open economy.
- understand the historical context of the social sciences
Macroeconomics emphasizes the evolution of economic models, theories and
policies through time and in
reaction to the problems of different time
periods. As such the student begins with the study of classical
economics,
then progresses through Keynesian economics, monetarist economic models, and
other schools
of economic thought. Included in the subject matter is the
Great Depression as well as the business cycles that
the economy has gone
through. Students are also made to understand that economics as social science
is constantly evolving. New models and economic theories are always being
developed and tested and are eventually used to
analyze more and more of
human behavior and social interactions.
- identify problems and frame research questions relating to humans and
their experience
The common concerns of modern societies that include unemployment,
inflation, economic growth and
improvements in the standard of living,
general welfare, etc. are the areas that form the core of
this
macroeconomics course. As part of their learning, students are
encouraged to be up to date with current
economic information and the
significance of such information. Once students understand the data that
reflect
the economic conditions that humans face, they proceed to a study
of how such conditions come about and
how changes may be effected through
economic policies. For example, students are expected to learn how the
Consumer Price Index is developed, how it is used to measure inflation rates,
how inflation affects various
segments of society, what causes inflation,
and what policies are available, based on economic models and
theories, to
prevent or tame inflation.
- become familiar with the process of theory-building and theoretical
frameworks
used by the social sciences
Students are expected to understand that there is a difference between
normative economics and
positive economics; that economic models are
developed as simplifications of complex realities;
that models are used to
study what are considered important relationships in society; and that from
these theoretical frameworks, important policies can be derived. Students
are made to go through a
process of understanding first economic data and
identifying economic problems as shown in the
data - for example,
unemployment problems or the threat of inflation, or the lack of economic
growth.
These problems are then analyzed using models developed by
economists. Students are asked to learn
he differences between exogenous
and endogenous variables as they study economic models. From this,
predictions about economic outcomes as well as fiscal and monetary policy
suggestions are derived.
- understand the research methods used in the social sciences
The research tool kit of economics includes a number of methods including
the use of the census, surveys,
observation, tabulation, etc. Students are
exposed to some of the numerous time series data that are compiled
by both
public and private agencies about the economy. Students become familiar with
the data compiled by
the Bureau of Labor of Statistics, the Department of
Commerce, the Federal Reserve Board, the National
Association of
Manufacturers, the National Bureau of Economic Research, etc. The extensive
use of graphs as representations of the economy helps the student analyze
various economic problems, relationships, and policies.
While econometric
techniques are not covered in this principles of macroeconomics course,
students are exposed
to some of the algebraic equations that capture the
essence of important economic relationships such as the
consumption
function, the savings function, and the money demand function.
- describe and detail discipline-specific knowledge and its applications
National income accounts provide much of the discipline specific data that
students must learn. This includes
data on the Gross Domestic Product,
unemployment, inflation, the money supply, interest rates, etc. The
models
for analysis of the data and economic problems are also discipline
specific such as aggregate supply and aggregate demand, the aggregate
expenditure models, circular flows in the economy, money demand functions, the
determination of interest rates, etc. Fiscal policy and monetary policy,
and the tools associated with these policies
are also covered extensively.
These are specific to economics and are at the core of the application of
economic knowledge to the human condition.
- understand differences among, and commonalities across humans and their
experiences,
as tied to such variables as gender, race, socioeconomic
status, etc.
The circular flow perhaps best demonstrates how
macroeconomics helps students understand the
commonality of experiences
among human beings. As part of the same resource, product, and
financial
markets, all individuals share common ground. However,
macroeconomics also teaches about the
differences in the human experience.
For example, students work with unemployment data that show how unemployment
affects segments of society differently depending on gender, race, and age
group. Data on
nflation rates and personal income also demonstrate to
students the differences among social groups, among
countries, and across
generations. The study of national income accounts, in particular the Gross
Domestic
Product, also includes segments on social welfare. The study of
fiscal policy is an important part of macroeconomics. And through this,
students have the opportunity to explore the impact of policy decisions
regarding spending and
taxation on the various segments of society.
(Sample Syllabus)
ECON 202 - Principles of Macroeconomics
Instructor:
Office:
Phone:
Office Hours: e-mail:
Texts:
Economics, by Case and
Fair
The Wall Street Journal (highly
recommended)
The Economist (highly recommended)
Objectives:
To introduce
the student to the basic concepts of economics, the economic way of thinking,
and the
economists' methods of analysis. The course will focus on the
behavior of aggregate variables in the economy
as well as the relationships
among these variables. Every attempt will be made to apply economic analysis to
current events and important national issues.
Expectations:
1. That the student has read the assigned segments of the book before
coming to class.
Class
periods should be utilized to clarify course material and to ask questions
of the
instructor. They
are not meant to be the student's first encounter with the subject
matter.
2. That the student is knowledgeable in current events. The instructor
will be using material
from
the Wall Street Journal related to current statistics about the economy, and
the
economicpolicies under
consideration by the Clinton administration, the US Congress,
and the FED. Since this is a
presidential election year, material from the respective
campaigns
relevant to
economics will also be included in the course. The student is responsible
for keeping
up-to-date with
current issues particularly as they relate to the economy. Questions on
current
events will be
included in the tests.
3. That the student has an adequate grasp of basic algebra and graphical
analysis.
Studentsshould
have no misconceptions about this course - it will be difficult
to do well in this course
unless you can correctly utilize equations and graphs.
4. Participation in class discussions whether in the form of questions,
answers, or comments
is
strongly encouraged and will count towards the final grade.
5. That all assigned work will be submitted on time. No late work will
be accepted regardless
of
the novelty of the
excuse.
6. Occasionally, readings will be assigned to supplement the material
covered in the textbook and
the lectures. Students
will be held responsible for all the material covered in the
assigned
chapters,
readings and lectures, whether or not these are discussed in class.
Test Dates (During the class
period):
September October
November
December
Make-up Test: December
Make-up Test Policy:
No student, for whatever reason, will be allowed to take a regularly scheduled
test earlier or later
than the above-mentioned times. Please do not even bother to ask for an
exemption from this rule.
Instead, any student who misses a test (except the final exam) may take the
make-up test.
However,
a student may make-up only one test. The make-up test will be comprehensive
and will be the same
regardless of which periodic test you miss. The make-up test may not replace any
earlier test in
which
a student did poorly. Furthermore, a student's presence at the beginning of a
regularly scheduled test
signifies that the test will count towards that student's final grade.
Final Exam:
There will be no early or late final exams given. The final exam will be
comprehensive.
Academic Honesty:
Academic dishonesty will not be tolerated. In accordance with the university’s
policy, anyone
caught cheating on a test or an assignment will receive an automatic grade of
"F" for the
course.
Plagiarism, claiming someone else's work as one's own, will also result in an
automatic grade of
"F" for the course. The university may add its own penalty.
Grading:
4 Periodic Tests - 70% A 90 -
100
Final Exam - 25% B 80
-
89
Attendance and
C 75 -
79
Class Participation -5% D
70 -
74
F 00 - 69
Extra Credit Work: I turn down all requests to do extra credit
work.
University Studies Program: Social Science Course
This course will satisfy three semester hours of the six-semester hour
requirement for social science
in the University Studies Program. As such, it
seeks to provide students taking this course the opportunity
to achieve the
following outcomes:
- understand humans as individuals and parts of larger social systems
- understand the historical context of the social sciences
- identify problems and frame research questions relating to humans and
their experience
- become familiar with the process of theory-building and theoretical
frameworks used by the social sciences
- understand the research methods used in the social sciences
- describe and detail discipline-specific knowledge and its applications
- understand differences among and commonalities across humans and their
experience, as tied to such variables as gender, race, socioeconomic status,
etc.
The outline below identifies where these University Studies Program outcomes
are addressed by placing
the letter references above in parenthesis.
Outline:
- Introduction
Many of the
fundamental concepts and common terminology of economics are introduced in
these
chapters.
Upon reading these chapters, students should find that the study of economics is
broad,
complex
and highly relevant. It is not just the study of "money". The appendix to
chapter 1 is a must,
particularly
for students who are not familiar with graphs.
Chapter 1 The
Scope and Method of Economics
Chapter 2 The
Economic Problem: Scarcity and
Choice
(b, c, d, e)
II. Domestic and International Economic Institutions
An
understanding of the economy requires that students know who are the major
actors in the economy
(households, businesses, and government) and the arrangements by which these
actors interact with one
another
(e.g. markets, taxation). In addition, it is impossible to understand the US
economy today without
an
understanding of the global environment. Hence, students must be prepared to
learn about international
trade,
balance of payments, and foreign exchange rates.
Chapter 3 The Structure of the US Economy: Private, Public, and
International
Sectors
(a, f, g)
III. The Data of Macroeconomics
Macroeconomics focuses on the behavior of certain "aggregates". These
"aggregates" are reflected in
variables
such as the Gross Domestic Product, the unemployment rate, and the inflation
rate. Students have most
likely
encountered these terms in the mass media. However, students should acquire a
deeper understanding of
these
variables in order to study the behavior of the economy and the sectors that
comprise the economy.
Chapter 21
Concepts and Problems in
Macroeconomics
Chapter 22 Measuring National Output and National
Income
Chapter 23 Unemployment, Inflation, and
Growth
(c, d, e, f, g)
IV. Macroeconomic Policy
These chapters are at
the core of macroeconomics. Among the major contributions of the discipline of
economics are the
various explanations of how the economy functions, how economic problems such
as inflation and
unemployment come about, and how policy can be used to improve the performance
of the economy. These
chapters will deal with fiscal and monetary policy. The student should be
prepared
to use
graphical analysis extensively.
Chapter 24 Aggregate Expenditure and
Equilibrium Output
Chapter 25 The Government and Fiscal
Policy
Chapter 26 The Money Supply and the
Federal Reserve
System
Chapter 27 Money Demand, the
Equilibrium Interest Rates, and Monetary
Policy
(a, b, c, d, e, f, g)
V. Issues in Macroeconomics
While much of policy debates may be couched in political terms (for example,
between
Democrats
and Republicans), the foundations of such debates are usually in economic
theories. These
chapters
provide the students with the tools to better understand the policy debates, and
to hopefully get
beyond the political rhetoric. Students should be prepared to question the
"conventional"
wisdom
surrounding economics.
Chapter 28 Money, the Interest Rate, and Output: Analysis and
Policy
Chapter 29 Aggregate Demand, Aggregate Supply, and
Inflation
Chapter 30 The Labor Market, Unemployment, and
Inflation
Chapter 31 Deficit Reduction, Fed Behavior, Stabilization, Stocks, International
Effects
Chapter 32 Household and Firm Behavior in the
Macroeconomy
(a, d, f, g)
VI. International Dimensions of Economic Policy
Trade, investments, and finance are the ties that bind the USA to the other
economies of the
world.
As a result, the macroeconomy can no longer be studied in isolation. These
chapters provide the
student with an introduction to the international dimensions of the US economy
as well as and
introduction to the economies of developing countries and to non-market
economies.
Chapter 35 International Trade, Comparative Advantage, and
Protectionism
Chapter 36 The Balance of Payments and Exchange
Rates
Chapter 37 Economic Growth in Developing
Nations
Chapter 38 Economies in Transition and Alternative Economic
Systems
(b, c, f, g) |