Course Design Guide ECO/372 Version 4

Course Syllabus
School of Business ECO/372 Version 4 rinci!les of "acroecono#ics
Co!yrigh$ % 2&12' 2&&(' 2&&7' 2&&) by *ni+ersi$y of hoeni,- .ll righ$s reser+ed-

Course Description /his course !ro+ides s$uden$s 0i$h $he basic $heories' conce!$s' $er#inology' and uses of #acroecono#icsS$uden$s learn !rac$ical a!!lica$ions for #acroecono#ics in $heir !ersonal and !rofessional li+es $hrough assi#ila$ion of funda#en$al conce!$s and analysis of ac$ual econo#ic e+en$sPolicies 1acul$y and s$uden$s 0ill be held res!onsible for unders$anding and adhering $o all !olicies con$ained 0i$hin $he follo0ing $0o docu#en$s2 *ni+ersi$y !olicies2 3ou #us$ be logged in$o $he s$uden$ 0ebsi$e $o +ie0 $his docu#en$4ns$ruc$or !olicies2 /his docu#en$ is !os$ed in $he Course Materials foru#-

*ni+ersi$y !olicies are sub5ec$ $o change- Be sure $o read $he !olicies a$ $he beginning of each class- olicies #ay be sligh$ly differen$ de!ending on $he #odali$y in 0hich you a$$end class- 4f you ha+e recen$ly changed #odali$ies' read $he !olicies go+erning your curren$ class #odali$yCourse Materials Colander' D- C- 62&1&7- Macroeconomics 6($h ed-7- Bos$on' ".2 "cGra089ill/4r0in.ll elec$ronic #a$erials are a+ailable on $he s$uden$ 0ebsi$e-

Week One: Fundamentals of Macroeconomics

Details
Objectives 1.1 E,!lain $he econo#ic in$erac$ion of resources a#ong households' go+ern#en$' and business1.2 Describe gross do#es$ic !roduc$' infla$ion ra$e' une#!loy#en$ ra$e' and in$eres$ ra$e1.3 4den$ify sources of his$orical econo#ic da$a and econo#ic forecas$sRead Ch- 1 of Macroeconomics. Read Ch- 2 of Macroeconomics. Read Ch- ) of Macroeconomics. Read Ch- 7 of Macroeconomics. Read Ch- ( of Macroeconomics.

Due

Points

Reading Reading Reading Reading Reading

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Partici ation !iscussion "uestions

Partici ate in class discussionRes ond $o 0ee:ly discussion ;ues$ions-

.ll 0ee: Sa$urday' day <

2 3

Week Two: Aggregate Demand and Supply Models

Details
Objectives 2.1 .naly=e $he i#!ac$ of +arious fac$ors on aggrega$e de#and and su!!ly2.2 E+alua$e $he effec$i+eness of changes in fiscal !olicies using >eynesian and Classical #odelsRead Ch- 1& of Macroeconomics. Read Ch- 12 of Macroeconomics. Partici ate in class discussionRes ond $o 0ee:ly discussion ;ues$ions.ll 0ee: Sa$urday' day < "onday' day 7 2 3 1&

Due

Points

Reading Reading Partici ation !iscussion "uestions #ndividual 1unda#en$als of "acroecono#ics a!er

Resource$ 1igure 381 in Ch- 3 of Macroeconomics.

Part 1 !escribe $he follo0ing $er#s in your 0ord Part 2 Consider $he follo0ing e,a#!les of econo#ic ac$i+i$ies2 urchasing of groceries "assi+e layoff of e#!loyees Decrease in $a,es Gross do#es$ic !roduc$ 6GD 7 ?eal GD @o#inal GD *ne#!loy#en$ ra$e 4nfla$ion ra$e 4n$eres$ ra$e

!escribe ho0 each of $hese ac$i+i$ies affec$s go+ern#en$' households' and businesses- Describe $he flo0 of resources fro# one en$i$y $o ano$her for each ac$i+i$y%rite a 7&&8 $o 1'3&&80ord !a!er su##ari=ing $he resul$s-

Course Design Guide ECO/372 Version 4

&earning 'ea( Aee:ly ?eflec$ion 8 Econo#ic 1orecas$ing a!er

!evelo a lis$ of resources you #igh$ use $o ga$her his$orical econo#ic da$a as 0ell as econo#ic forecas$ da$aE) lain ho0 and 0hy each source is +aluable and useful#denti*+ any ;uan$i$a$i+e or ;uali$a$i+e forecas$ing fac$ors con$ained in $he sources!iscuss $his 0ee:Bs ob5ec$i+es 0i$h your $ea#- 3our discussion should include $he $o!ics you feel co#for$able 0i$h' any $o!ics you s$ruggled 0i$h' and ho0 $he 0ee:ly $o!ics rela$e $o a!!lica$ion in your field%rite a 3<&8 $o 1'&<&80ord !a!er $ha$ de$ails your $ea#Cs findings-

"onday' day 7

Week T ree: Monetary Policy

Details
Objectives 3.1 .ssess $he fac$ors con$ribu$ing $o $he es$ablish#en$ of general and s!ecific ra$es of in$eres$3.2 E,!lain $he role of $he 1ederal ?eser+e Sys$e# in designing and i#!le#en$ing *-S- #one$ary !olicies3.3 .naly=e ho0 $he #oney #ul$i!lier effec$ facili$a$es $he crea$ion of #oneyRead Ch- 11 of Macroeconomics. Read Ch- 13 of Macroeconomics. Read Ch- 14 of Macroeconomics. Partici ate in class discussionRes ond $o 0ee:ly discussion ;ues$ions1or $his assign#en$' you 0ill choose fro# $he follo0ing o!$ions2 O!$ion 12 Econo#ic .d+ise#en$ a!er O!$ion 22 Econo#ic Cri$i;ue .ll 0ee: Sa$urday' day 7 "onday' day 7 2 3 14

Due

Points

Reading Reading Reading Partici ation !iscussion "uestions &earning 'ea( .ggrega$e De#and and Su!!ly "odels

Read $he ins$ruc$ions in $he *ni+ersi$y of hoeni, "a$erial2 .ggrega$e De#and and Su!!ly "odels loca$ed on $he s$uden$ 0ebsi$e and selec$ o!$ion one $o co#!le$e $he

assign#en$&earning 'ea( Aee:ly ?eflec$ion !iscuss $his 0ee:Bs ob5ec$i+es 0i$h your $ea#- 3our discussion should include $he $o!ics you feel co#for$able 0i$h' any $o!ics you s$ruggled 0i$h' and ho0 $he 0ee:ly $o!ics rela$e $o "onday' day 7 2

Course Design Guide ECO/372 Version 4

a!!lica$ion in your field%rite a 3<&8 $o 1'&<&8 0ord !a!er de$ailing $he findings of your discussion-

Week Four: Fiscal Policy ! Politics" Deficits" and De#t

Details
Objectives Reading Reading Partici ation !iscussion "uestions #ndividual 1ederal ?eser+e resen$a$ion 4.1 .naly=e $he influence of defici$' sur!lus' and deb$ on $he heal$h of $he *-S- #acroecono#yRead Ch- 17 of Macroeconomics. Read Ch- 1( of Macroeconomics. Partici ate in class discussionRes ond $o 0ee:ly discussion ;ues$ions3our boss has chosen you $o gi+e a !resen$a$ion $o a nu#ber of foreign officials regarding $he *ni$ed S$a$es 1ederal ?eser+e Sys$e#- /hese officials are +ery in$eres$ed in doing business in $he *ni$ed S$a$es' bu$ $hey 0ould li:e $o learn #ore abou$ $he 1ederal ?eser+e and ho0 i$ o!era$es!evelo a 1&8 $o 1<8slide "icrosof$D o0er oin$D !resen$a$ion.ll 0ee: Sa$urday' day < "onday' day 7 2 3 1&

Due

Points

,ddress t-e *ollo.ing /uestions and create a se arate notes docu(ent .-ic- contains t-e .rite0u ortion to eac- /uestion1 and sub(it t-e docu(ent .it- t-e Po.erPoint resentation to ,ssign(ent tab$
Aha$ are $he fac$ors $ha$ 0ould influence $he 1ederal ?eser+e in ad5us$ing $he discoun$ ra$eE 9o0 does $he discoun$ ra$e affec$ $he decisions of ban:s in se$$ing $heir s!ecific in$eres$ ra$esE 9o0 does #one$ary !olicy ai# $o a+oid infla$ionE 9o0 does #one$ary !olicy con$rol $he #oney su!!lyE 9o0 does a s$i#ulus !rogra# 6$hrough $he #oney #ul$i!lier7 affec$ $he #oney su!!lyE Curren$ly' 0ha$ indic$ors are e+iden$ $ha$ $here is $oo #uch or $oo li$$le #oney 0i$hin $he econo#yE 9o0 is #one$ary !olicy ai#ing $o ad5us$ $hisE &earning 'ea( !iscuss $his 0ee:Bs ob5ec$i+es 0i$h your $ea#- 3our discussion "onday' 2

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<

Aee:ly ?eflec$ion

should include $he $o!ics you feel co#for$able 0i$h' any $o!ics you s$ruggled 0i$h' and ho0 $he 0ee:ly $o!ics rela$e $o a!!lica$ion in your fieldPre are a 3<&8 $o 1'&<&8 0ord !a!er de$ailing $he findings of your discussion-

day 7

Week Fi$e: %nternational Trade and Finance

Details
Objectives 2.1 .naly=e $he effec$s of in$erna$ional $rade on $he *-S#acroecono#y2.2 E,!lain ho0 foreign e,change ra$es are de$er#ined2.3 .naly=e $he i#!ac$ of $rade res$ric$ions' $ariffs' and ;uo$as on $he *-S- #acroecono#yRead Ch- 1F of Macroeconomics. Read Ch- 2& of Macroeconomics. Read Ch- 21 of Macroeconomics. Resources$ Macroeconomics Clic3 $he lin: $o $he 1inal E,a#ina$ion on your s$uden$ 0ebsi$eCo( lete $he 1inal E,a#ina$ion- 3ou are allo0ed one a$$e#!$ $o co#!le$e $he e,a#' 0hich is $i#ed and #us$ be co#!le$ed in 3 hours- ?esul$s are au$o graded and sen$ $o your ins$ruc$orNote. 1inal E,a#ina$ion ;ues$ions are ada!$ed fro# Macroeconomics. #ndividual 4n$erna$ional /rade and 1inance S!eech .ssu#e $ha$ you ha+e been a!!oin$ed as $he S!ea:er of $he 9ouse- 3ou #us$ deli+er a s!eech abou$ $he curren$ s$a$e of $he *-S- #acroecono#y $o a nu#ber of a#a$eur re!or$ers 0ho are unfa#iliar 0i$h econo#icsPre are a 7<&8 $o 1'&<&80ord s!eech in si#!le $er#s and conce!$s $ha$ focus on in$erna$ional $rade and foreign e,change ra$es#ntegrate a su##ary of your ans0ers $o $he follo0ing ;ues$ions and ci$e e,$ernal research $o fur$her 5us$ify your fac$s2 Aha$ ha!!ens 0hen $here is a sur!lus of i#!or$s brough$ in$o $he *-S-E Ci$e a s!ecific e,a#!le of a !roduc$ 0i$h an i#!or$ sur!lus' and $he i#!ac$ $ha$ has on $he *-Sbusinesses and consu#ers in+ol+ed"onday' day 7 1< "onday' day 7 1<

Due

Points

Reading Reading Reading #ndividual 1inal E,a#ina$ion

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Aha$ are $he effec$s of in$erna$ional $rade $o GD ' do#es$ic #ar:e$s and uni+ersi$y s$uden$sE 9o0 do go+ern#en$ choices in regards $o $ariffs and ;uo$as affec$ in$erna$ional rela$ions and $radeE Aha$ are foreign e,change ra$esE 9o0 are $hey de$er#inedE Ahy doesnB$ $he *-S- si#!ly res$ric$ all goods co#ing in fro# ChinaE Ahy canB$ $he *-S- 5us$ #ini#i=e $he a#oun$ of i#!or$s co#ing in fro# all o$her coun$riesE &earning 'ea( 1iscal olicy a!er !iscuss 0i$hin your Gearning /ea# ho0 and 0hy $he *-S-Bs defici$' sur!lus and deb$ ha+e an effec$ on $he follo0ing2 /a, !ayers 1u$ure Social Securi$y and "edicare users *ne#!loyed indi+iduals *ni+ersi$y of hoeni, s$uden$ /he *ni$ed S$a$eBs financial re!u$a$ion on an in$erna$ional le+el . do#es$ic au$o#o$i+e #anufac$uring 6e,!or$er7 .n 4$alian clo$hing co#!any 6i#!or$er7 GD %rite a 7<&8 $o 1'&<&80ord !a!er su##ari=ing $he resul$s"onday' day 7 1&

Optional Discussion &uestions %ee3 One !iscussion "uestions Aha$ is $he difference be$0een real and no#inal GD E Does GD accura$ely reflec$ $he na$ionBs 0elfareE Ahy or 0hy no$E 9o0 can a coun$ryBs GD be #ani!ula$edE 4n your o!inion' is $he *-S- GD being #ani!ula$edE E,!lain your ans0er 4den$ify econo#ic fac$ors $ha$ affec$ $he real GD ' $he une#!loy#en$ ra$e' $he infla$ion ra$e' and a :ey in$eres$ ra$e- 9o0 do you !redic$ $he econo#y 0ill !erfor# in $he ne,$ $0o years gi+en $he curren$ s$a$e of $0o of $he econo#ic fac$ors you iden$ifiedE 9o0 #igh$ your organi=a$ion be affec$ed by $hese changesE %ee3 '.o !iscussion "uestions E,!lain $he +ie0!oin$s of classical and >eynesian econo#is$s- 9o0 did $he econo#y $ha$ e,is$ed a$ $he $i#e of $hese $heories influence $he#E Ahich $heory is #ore a!!ro!ria$e for $he econo#y $odayE AhyE Aha$ is $he difference be$0een con$rac$ionary and e,!ansionary fiscal !oliciesE Ahich is #ore a!!ro!ria$e $odayE E,!lain your ans0er- 9o0 #igh$ con$rac$ionary and e,!ansionary fiscal !olicies affec$ your organi=a$ionE

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%ee3 '-ree !iscussion "uestions Aha$ are $he func$ions or uses of #oneyE 9o0 do co##ercial ban:s and 1ederal ban:s crea$e #oneyE 4s #one$ary !olicy conduc$ed inde!enden$ly in $he *ni$ed S$a$esE E,!lain your ans0er- 4s i$ i#!or$an$ for #one$ary !olicy $o re#ain inde!enden$ fro# all !ar$iesE Ahy or 0hy no$E Aha$ is $he difference be$0een con$rac$ionary and e,!ansionary #one$ary !olicyE Aha$ is $he in$en$ion of each !olicy under a de!ression' recession' or robus$ econo#yE Ahich $y!e of #one$ary !olicy is #ore a!!ro!ria$e $oday and 0hyE %ee3 4our !iscussion "uestions 9o0 does a go+ern#en$ budge$ defici$ affec$ $he econo#yE 4den$ify $0o !eriods in recen$ his$ory in 0hich $he *ni$ed S$a$es has run budge$ defici$s- Aha$ 0ere $he reasons for $he defici$s during $hose $i#e !eriodsE 9o0 does a go+ern#en$ budge$ sur!lus affec$ $he *-S- econo#yE 4den$ify $0o !eriods in recen$ his$ory in 0hich $he *ni$ed S$a$es has run budge$ sur!luses- Aha$ 0ere $he reasons for $he sur!luses during $hose $i#e !eriodsE Copyrig t
*ni+ersi$y of hoeni,D is a regis$ered $rade#ar: of .!ollo Grou!' 4nc- in $he *ni$ed S$a$es and/or o$her coun$ries"icrosof$D' Aindo0sD' and Aindo0s @/D are regis$ered $rade#ar:s of "icrosof$ Cor!ora$ion in $he *ni$ed S$a$es and/or o$her coun$ries.ll o$her co#!any and !roduc$ na#es are $rade#ar:s or regis$ered $rade#ar:s of $heir res!ec$i+e co#!anies- *se of $hese #ar:s is no$ in$ended $o i#!ly endorse#en$' s!onsorshi!' or affilia$ion1inal e,a#s con$ain $hird8!ar$y co!yrigh$ed #a$erials- or$ions are2 Co!yrigh$ % 2&1& *ni+ersi$y of hoeni,- .ll righ$s reser+edCo!yrigh$ % 2&1& "cGra089ill- .ll righ$s reser+edEdi$ed in accordance 0i$h *ni+ersi$y of hoeni,D edi$orial s$andards and !rac$ices-