ECON1BB3/1BB3E:INTRODUCTORYMACROECONOMICS SectionsC01,C03,C04

McMasterUniversity Winter2011
Instructor: Ms.BridgetOShaughnessy KTH403 9055259140x23808 oshaughnessy@mcmaster.ca

InstructionalAssistant: Ms.ShadabQaisser KTH333 9055259140x23800 econia@mcmaster.ca Lectures: C01: We7:0010:00,MDCL1305 C03: TuWeFr9:3010:20,MDCL1305 C04: TuThFr2:303:20,MDCL1305 Officehours: CourseMaterials: TuFr1:002:00 Orbyappointment.

CourseObjectives: Learnabouttheuseofassumptionsandmodelsineconomics. Beabletousespecificmodels(PPF,supplyanddemand,ADAS)toanalyze economicproblems. Understandthecomputationofmacroeconomicvariablessuchastheinflation rate,unemploymentrate,andGDP. UnderstandtheuseofmonetaryandfiscalpolicyinCanada,asmallopen economy. Developanalyticalandproblemsolvingskills. Evaluation: Termtests 50% Finalexam 50% 1

PrinciplesofMacroeconomics,4thCanadianed.,Mankiw, Kneebone,McKenzie,andRowe iclicker,personalresponseunitrecommended,notrequired ApliaWebsite,stronglyrecommended.Seepaymentand registrationinformationonpage7ofthisoutline.

Tests: Therearetwomandatorytermtestsandonemandatoryfinalexam.Thefinalexamis worth50%.Thetermtestwiththehigherscoreisworth30%andthetestwiththe lowerscoreisworth20%.Thetestswillconsistofmultiplechoiceandshortanswer questions.TheonlycalculatorallowedduringtestsistheCasioFX991.Testswillbe conductedonSaturdaymorningsbetween9:00and12:30(seelecturescheduleon page5fordates).Youwillbeassignedaspecificstarttime(either9:00or11:00)and locationduringtheweekpriortotheactualtestdates. Writinginaroomotherthanthe oneyouareassignedtoorwritingattheincorrecttimewillresultinapenaltyof5 marksoffyourtestgrade.AnalternatedateisprovidedONLYforstudentswhoobtain consentbysubmittingtheofficialrequestformtendayspriortothetest(see Importantdatesonpage7).Areasonsuchasreligiousobservation,employment,or participationonuniversityteamsmustbeprovidedalongwithcontactinformationfor someonewhocanverifyyourreason(e.g.anemployer,religiousleader,orcoach).A listofstudentswhohavebeengrantedpermissiontowriteonthealternatedatewillbe postedonAvenuefivedayspriortothetest.Ifyournamedoesnotappearonthatlist, youmaynotwriteonthealternatedate:Yourtestwillnotbegraded.Duetoroomsize limitations,itmaynotbepossibletograntconsentinallcases.Thealternatedatesfor theSaturdaytestsarethepreviousThursdayeveningsfrom7:00to8:30pm.Ifyouhave alegitimatereasonanddocumentationindicatingthatyoucannotwritetheteston eitherthealternateThursdayeveningdateORtheSaturdaytest,thentheweightofthe testwillbetransferredtoyourfinalexam(ifyouhaveacourseconflict,submita printoutofyourSOLARtimetable). Therewillbethreecompletelydifferenttestsforboththefirsttermtestandthesecond termtest,withmultipleversionsofeachtest.Becausetherearedifferenttests,itmay benecessarytoadjustthegradesofstudentswhotakeaparticulartest.Thescoreson themultiplechoicesectionsofthetestswillbeusedtoensurethatthegradingisfair acrossdifferenttests. Ifyoumissatermtestyouwillreceiveagradeofzerounlessyousubmitanonline studentabsenceformat:www.mcmaster.ca/msaf/ "ThisisaselfreportingtoolforUndergraduateStudentstoreportabsencesthat lastupto5daysandprovidestheabilitytorequestaccommodationforany missedacademicwork.Pleasenote,thistoolcannotbeusedduringanyfinal examinationperiod. Youmaysubmitamaximumof2AcademicWorkMissedrequestsperterm. Ifyouareabsentmorethan5daysorexceed2requestspertermyouMUST visityourAssociateDean'sOffice(FacultyOffice).Youmayberequiredto providesupportingdocumentation."

Inthecaseofamissedtest,thefinalexamwillbereweighted.MissingaThursday testdoesnotentitleyoutowritethetestontheSaturdaymorningifyousignedupfor 2

theearlywriteandyouareill,youshouldcompletetheonlineformandtheweightwill betransferredtoyourfinalexam.Makeuptestswillnotbegivenunderany circumstances. AcademicIntegrity: YouareresponsibleforcomplyingwiththeUniversityspolicyregardingacademic integrity.Thepolicyisavailableathttp://www.mcmaster.ca/policy/Students AcademicStudies/AcademicIntegrity.pdf andcoversawidevarietyoftopicsincludingcheatingontestsandplagiarism. iclicker: Wewillbeusingtheiclickerthisyearduringlectures.Thesepersonalresponseunitsare recommendedbutnotrequired.Theiclickerismeanttoenhanceyourlearning experienceduringlecturesyouwillpaycloserattentiontothematerialifyouknow youwillbeaskedquestionsandhavetorespond.Also,theimmediatefeedbackwill allowmetodeterminehowmuchyouunderstandsothatIcanreviewmaterialwhen necessaryorgointomoredetailaboutaparticularconcept. Podcasts: Eachlecturethissemesterwillbepodcast.Byviewingthepodcastyouwillbeableto seetheentirePowerPointpresentationandsimultaneouslyhearthelecture.The podcastsaremeanttosupplementyourlearning.Takeadvantageofthemifyoumissa classforsomereasonortoreviewdifficultmaterial.Thepodcastsforeachweekwillbe availableonAvenueeveryFriday(podcastswillNOTbeavailablebeforelectures). Podcastswillnotbeavailableforlecturesessionstitledactivityorinclass demonstration.Youareresponsibleformaterialcoveredintheseclasses. PowerPointSlides: MyPowerPointslidesarenotavailabletostudents.Takinggoodlecturenotesisaskill thatrequirespracticeyouwillpaymoreattentiontothelectureifyouneedtodecide whichportionsofthelectureshouldbeinyournotes.Youcanconsultthepodcasts latertofillinanygapsinyournotes(podcastsareusuallymuchshorterthanlive lecturessincetheyareprerecordedandIdonotstopforquestions). Twitter: Thereisatwitteraccountforthiscoursethatwillbeusedfortimesensitive announcements,especiallyforthe9:30section.Subscribetothetwitterfeedviathis link:https://twitter.com/macecon1bb3w11.Youwillneedtocreateatwitterprofilein ordertofollowupdatesforthecourse.Youcanhaveupdatessenttoyourcellphoneas atextmessage,butyourserviceprovidermaychargeyouforthisactivity.Youmayalso havenotificationsenttoyouviaemail.Thetwitterfeedisentirelyoptional.When possible,Iwillpostannouncementsonthecoursewebsite. 3

Codeofconduct: Thisclassisbeingheldinverylargeroomswithhundredsofstudents.Pleasebe courteoustoeachother,theinstructorandtheteachingassistants.Turnoffyourcell phonesbeforeclassstarts.PleasedonotlistentoyourMP3player,playcomputer games,checkemailorFacebook,textmessage,readthenewspaper,orholdloud conversationsthatmaybedisruptivetotherestoftheclass.Laptopcomputersshould beusedonlyfortakingnotesduringclass.Usingyourlaptopforotherpurposesis extremelydistractingtostudentssittingbehindyou.Ifyouarrivelate,pleaseusethe doorsatthebackoftheclassroominMDCL1305.Ifyouarriveearlyorontime,please sitnearthefrontoftheroomtoallowstudentswhoarelatetoslipintoclassquietly. Wheretogethelp: Togethelpwiththecoursematerial,youhavethreeoptions: TheinstructorIhaveofficehoursinmyoffice(KTH403)onTuesdayandFriday from1:00to2:00pm.Ifyouwouldliketoseemeatsomeothertime,feelfree toemailmeforanappointment.IaminmyofficeeverydayexceptMondayif mydoorisopen,dropinwithoutanappointment. TheInstructionalAssistant,ShadabQaisser,willholdofficehoursatKTH333on Tuesday,Thursday,andFridayfrom9:00to10:00andbyappointment. TheEconomicsClinicteachingassistantswillbeavailableattheeconomics clinicinKTH306A.Duringthefallsemester,thehoursofoperationwere 10:00amto1:00pmonMonday,Tuesday,andWednesday.Ifthehourschange forthewintersemester,IwillpostthenewhoursonAvenue. Ifyouarehavingtechnicalproblemswiththepodcasts,pleasecontact podcast@mcmaster.ca. Ifyouneedhelpwithotheradministrativemattersrelatingtothecourse,please seeShadab.Wewillreplytoallemailswithintwobusinessdaysofreceipt.We willnotrespondtoemailsforwhichtheanswerisavailableinthiscourseoutline oronAvenue(eg.Whereisyourofficeandwhatareyourofficehours?) PleasechecktheNewssectionofAvenueregularly. TherewillbeadiscussionboardonAvenueforyoutocommunicatewithyour fellowstudents.Ifyoucantfindtheinformationyourelookingforinthecourse outline,postonthediscussionboardandmaybeanotherstudentcanhelpyou. Facultyofsocialsciencesemailcommuncationpolicy: EffectiveSeptember1,2010,itisthepolicyoftheFacultyofSocialSciencesthatalle mailcommunicationsentfromstudentstoinstructors(includingTAs),andfrom studentstostaff,mustoriginatefromthestudentsownMcMasterUniversityemail account.Thispolicyprotectsconfidentialityandconfirmstheidentityofthestudent.It isthestudentsresponsibilitytoensurethatcommunicationissenttotheuniversity fromaMcMasteraccount.Ifaninstructorbecomesawarethatacommunicationhas comefromanalternateaddress,theinstructormaynotreplyathisorherdiscretion. 4

EmailForwardinginMUGSI: http://www.mcmaster.ca/uts/support/email/emailforward.html *Forwardingwilltakeeffect24hoursafterstudentscompletetheprocessattheabove link

LectureSchedule: Week: Jan.37 Jan.1014 Jan.1721 Jan.2428 Jan.31Feb.4 Feb.711 Feb.12 Feb.1418 Feb.2125 Feb.28Mar.3 Mar.711 Mar.12 Mar.1418 Mar.2125 Mar.28Apr.1 Apr.1028

Lectures: L1,L2(noclassonFriday,Jan.7) L3,L4,L5 Activity,L6,L7 L8,L9,L10 L11,L12,L13 L14,inclassdemo,testreview Test#1,Saturdaymorning,Ch.16 L15,L16,L17 ReadingWeeknoclasses L18,L19,L20 L21,L22,testreview Test#2,Saturdaymorning,Ch.711 L23,L24,L25 L26,L27,L28 L29,L30,activity FinalExamexactdateannouncedinFebruary

LectureContent: MicroeconomicTopics L1: Introduction L2: Tenprinciplesofeconomics(Ch.1) L3: Whatismoredangerous,agunoraswimmingpool?(Ch.2) L4: WhydoesntTigerWoodsmowhisownlawn?(Ch.3) L5: Shouldyouandyourroommatedividehouseholdchoresevenly?(Ch.3) Whataffectsyourdecisiontogotothemovies?(Ch.4) L6: L7: WhatwillhappentoWalmartseverydaylowpricesiftheirworkersunionize? (Ch.4) L8: Whyisgasolinetypicallymoreexpensiveinthesummer?(Ch.4)

DefinitionsandData L9: Doesdoingthedisheshaveeconomicvalue?(Ch.5) L10: HowdoIknowifImbetteroffthanmyparentswere?(Ch.5,6) L11: ShouldIsaveforarainydayorgoshoppingnow?(Ch.6) TheLongRun L12: WhyareNorwegiansbetteroffthanEthiopians?(Ch.7) L13: Whatdothetermssavingandinvestmentmeantoaneconomist?(Ch.8) L14: Isagovernmentbudgetdeficitbadfortheeconomy?(Ch.8) L15: Isunemploymentnecessarilybad?(Ch.9) L16: ThefollowingstatementwouldbeviewedasgoodnewsinCanada,butbadnews intheUS:Theunemploymentrateis6.5%.Whatsgoingonhere?(Ch.9) L17: IsmyMastercardanasset?(Ch.10) L18: Howdobankscreatemoney?(Ch.10) L19: Whyistheinflationrate2.5%inCanadabut19%inVenezuela?(Ch.11) L20: Whyisinflationbadfortheeconomy?(L20;Ch.11) OpenEconomyIssues L21: Whydosomecountrieshaveatradesurplus?(Ch.12) L22: Whatdeterminesthevalueofthedollar?(Ch.12) L23: Whatisasmallopeneconomy?(Ch.13) L24: Isagovernmentbudgetdeficitbadforasmallopeneconomy?(Ch.13) TheShortRun L25: Howdoaggregatedemandandaggregatesupplydifferfromdemandand supply?(Ch.14,15) L26: Whatarebusinesscyclesandwhatcausesthem?(Ch.14) L27: Howdoestheeconomyreturntolongrunequilibriumaftersufferingashock? (Ch.14) L28: Whatcanthegovernmentofaclosedeconomydoaboutbusinesscycles?(Ch. 14,15) L29: Howdomonetaryandfiscalpolicyworkinasmallopeneconomy?(L29,Ch.14, 15) L30: ADASoverview

Importantdates: Tuesday,Jan.11 Wednesday,Feb.2 Friday,Feb.4 Tuesday,Feb.8 Thursday,Feb.10 Saturday,Feb.12 Wednesday,Mar.2 Friday,Mar.4 Tuesday,Mar.8 Thursday,Mar.10 Friday,Mar.11 Saturday,Mar.12 Friday,Apr.1 Apr.726

Lastdayforregistrationandaddingordroppingcourses Requestfortest#1earlywritedueinKTH333by4:30pm Listofstudentswritingtest#1earlywillbepostedonAvenue Roomandtimeassignmentsfortest#1(Saturday)postedonAvenue Test#1(Ch.16),earlywrite,7:00pmto8:30pm Test#1(Ch.16),9:00amto10:30amOR11:00amto12:30pm Requestfortest#2earlywritedueinKTH333by4:30pm Listofstudentswritingtest#2earlywillbepostedonAvenue Roomassignmentsfortest#2(Saturday)postedonAvenue Test#2(Ch.711),earlywrite,7:00pmto8:30pm Lastdayforcancellingcourseswithoutfailurebydefault Test#2,(Ch.711),9:00amto10:30amOR11:00amto12:30pm LastdayofclassesforEcon1BB3/1BB3E FinalExamexactdateannouncedmidFebruary(Ch.516)

How to access your Aplia course

ECON 1BB3: Intro to Macroeconomics, Winter 2011
Instructor: Bridget O'Shaughnessy Start Date: 01/03/2011 Course Key: C4A6-6N64-VXXH

Registration
Aplia is part of NelsonBrain, which allows you to sign in to a single site to access your Nelson materials and courses. 1. Connect to http://login.nelsonbrain.com/ 2. If you already have an account, sign in. From your Dashboard, enter your course key (C4A6-6N64-VXXH) in the box provided, and click the Register button. If you don't have an account, click the Create a New Account button, and enter your course key when prompted: C4A6-6N64-VXXH. Continue to follow the on-screen instructions.

Payment
You can purchase Aplia and Mankiw from the main Titles Bookstore located in Gilmour Hall. After the first few weeks of classes they will be in The Tank. There are 2 ways to obtain your course materials: Option 1 - $70 Aplia access card (located at the check-out desk in Titles) that includes all the Aplia resources and an electronic copy of the Mankiw text. Option 2 - $114.00 Study Resources Package that contains: -Aplia access card with electronic copy of the Mankiw text -Hard copy of the Mankiw text -Study Guide to the Mankiw text -Text Economics for Life! 101 Lessons you can Use Everyday -Global Economic Watch pincode, access to daily economics news and resources