Eco 200                                                                                                                                                           S. Atri
Principles of Macroeconomics                                                                                                                      431 A, Mahar Hall
Fall 2007                                                                                                                                                         Office Hours:
                                                                                                                                                                         Monday 11:00 AM– 12:30 PM
                                                                                                                                                                         Wed  1:00 PM – 2:30 PM
                                                                                                                                                                         and by appointment

           Syllabus

COURSE DESCRIPTION
Economics 200 is a part of a sequence of two introductory courses in economics.  It concerns the principles of macroeconomics that is a study of the economic behavior and relations of economic aggregates.  More specifically, in this course we study the economy as a whole. We examine macroeconomic measures such as national income and expenditures, employment and unemployment levels, the price level and inflation, money and monetary policy, interest rates, saving and investment, the macroeconomic role of the government, and economic growth.
COURSE OBJECTIVES
In a free, market-based democracy it is essential that all citizens have some knowledge of how the economy works. Such knowledge enables them to function more productively for themselves as well as for the benefit of the society. The primary purpose of this course is to provide students with an understanding of the working of the economy as a whole.
Moreover, in an increasingly interdependent and competitive world, today one cannot be expected to be able to make good economic or business decisions without an ability to obtain and understand relevant economic information. A good knowledge of basic economics enables us as consumers, workers, business managers, investors, or government officials to better read and understand economic and market signals and thus make better decisions. Besides, to be a good citizen in a participatory democracy one needs to understand how the society works so that one can make intelligent, responsible political choices.
COURSE OUTLINE
I. Orientation: What is Economics (Chapter 1)
•   An Introduction to Economics and Economic Thinking
•   Methodology:  Is Economics a Science?
•   A Brief Discussion of Some Economic Problems
•   Economic Models
•   Economic Tools of Analysis: How to Read and Use Graphs
II. The Basic Economic Problem (Chapter 2)
•   Scarcity and Choice
•   Production Possibilities Curve (table)
•   Opportunity Cost
•   Economic Efficiency
•   Marginal Analysis
•   Fundamental Economic Questions
•   Full Employment and Full Production
III. Economic Systems
•   Traditional Economies
•   Capitalism
•   Command Economies
•   A Closed Economy vs. An Open Economy
•   The American Economy
•   Microeconomics and Macroeconomics
 IV. Supply and Demand (Chapter 3)
•   The Circular Flow
•   Demand
•   Supply
•   Market Equilibrium
•   Market System and the Fundamental Economic Questions
 V. Demand and Supply Working (Chapter 4)
•   Demand and Supply Revisited
•   The Theory of Consumer Behavior
•   Consumer and Producer Surplus
•   Deadweight Loss
VI. Introduction to Macroeconomic (Chapter 5)
•   Macroeconomics and our Lives
•   Economic Aggregates
•   Classical Models
•   The Great Depression and the Keynesian Revolution
•   A Historical View
•   The Circular Flow
•   Economic Cycles
•   Fiscal Policy
•   Monetary Policy and the Federal Reserve
•
VII. Measuring National Product (Chapter 6)
•   Gross Domestic Product
•   National Income accounting
•   Nominal versus Real Measures
•   Limitations of the GDP Measure
VIII. Macroeconomic Concerns: Growth, Productivity, Unemployment, and Inflation (Chapter 7)
•   Productivity and Economic Growth
•   Labor Productivity and Growth
•   Recessions, Depressions, and Unemployment
•   Measuring Unemployment
•   The Cost of Unemployment
•   Inflation and Price Index
IX. Macroeconomic Equilibrium (Chapter 8)
• The Circular Flow Revisited
• Macroeconomic Equilibrium: Aggregate Income and Expenditure
• Income, Consumption, and Saving
• Equilibrium Output
• The Multiplier
X. The Government and Fiscal Policy (Chapter 9)
• The Government and the Economy
• Fiscal Policy
• The Government Spending Multiplier
• The Tax Multiplier
• The Federal Budget and the Economy
XI. The Federal Reserve and the Money Supply (Chapter 10)
• What is Money?
• The Functions of Money
• Measuring Money Supply
• The Federal Reserve and The Banking System
• Money Multiplier
• Monetary Policy
XII. The Money Market, the Interest Rate, and Output (Chapters 11 and 12)
• Demand for Money
• Supply and Demand in the Money Market
• Money Market and the Interest Rate
• The Interest Rate and the Goods Market
• Bringing the Goods Market and the Money Market Together
• The Interest Rate and Investment
XIII. Aggregate Demand and Aggregate Supply (Chapter 13)
•  The Aggregate Demand Curve
•  The Aggregate Supply Curve
•  The Equilibrium Price Level
•  The Long-Run Aggregate Supply Curve
•  Real and Potential GDP
•  Inflation and its Causes
XIV. Unemployment and Inflation (Chapter 14)
•  The Labor Market
•  The Labor Market and the Aggregate Supply Curve
•  The Stickiness of Wages
•  The Minimum Wage Law
•  The Phillips Curve
•  The Natural Rate of unemployment
 XV. Macroeconomic Issues and Policy (Chapters 15 and 19)
•  The Effectiveness of Monetary and Fiscal Policy
•  Monetary Policy
•  The Federal Reserve and the Economy
•  A Historical Review of Monetary and Fiscal Policy
•  Debates in Macroeconomics
•  Keynesian Economics versus Monetarism
•  New Classical Macroeconomics
• Supply Side Economics
XVI. The Capital Market (Chapter 16)
• Stocks and Bonds
• Stock Valuation
• A Historical Review
XVII. Economic Growth (Chapter 18)
• The Sources of Economic Growth
• Growth and Productivity
• Public Policy and Economic Growth
• Pros and Cons of Economic Growth
TEXTBOOKS
Required: Karl E. Case and Ray C. Fair, Principles of Macroeconomics, 8th Edition, Pearson Prentice Hall: 2007

EXAM SCHEDULE

Tests
Dates 
Planned Coverage 
%Weight 
Test I 
Wednesday, Oct 3
Chapters   1 - 4
20
Test II 
    Wednesday, Nov14 
Chapters 5 -10
30
Final Exam
    Wednesday, Dec 12 
6:00 -8:00 PM
Cumulative 
40

GRADING PROCEDURE: In addition to the above scheduled tests, there will be weekly quizzes carrying up to 10 points that will be added to students' cumulative points on the scheduled exams. Students are strongly urged not to miss any exams. No make-up exams will be given. The final course grades will be determined based upon the distribution of the total points obtained from the scheduled exams and quizzes.

ATTENDANCE:  Students should attend classes regularly as repeated absences could adversely affect their final grades.

Intellectual Integrity
Intellectual integrity on the part of all students is basic to individual growth and development through college course work. When academic dishonesty  occurs, the teaching/learning climate is seriously undermined and student growth and development are impeded. For these reasons, any form of intellectual dishonesty is a serious concern and is therefore prohibited.
Note: If you have a disabling condition which may interfere with your ability to successfully complete this course, please contact the Disability Services Office.
Contact Information
Office: 431 Mahar Hall
Telephone: (315) 312- 3954
Email address: atri@oswego.edu
Web site: http://www.oswego.edu/~atri