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DEPARTMENT: ECONOMICS AND FINANCE
COURSE NUMBER : ECO 230 - 5 CREDIT HOURS : 3 SEMESTER : Spring 2007
I. TITLE: PRINCIPLES OF MACROECONOMICS
II. INSTRUCTOR : Dr. David Brasfield
OFFICE LOCATION: BB307A PHONE: 809-4324 E-Mail: david.brasfield@murraystate.edu
WEB: http://campus.murraystate.edu/academic/faculty/david.brasfield
OFFICE HOURS : 8:00 – 9:30 TuTh, 10:45 – 11:30 TuTh, 12:30 – 2:00 TuTh. 9:00 – 11:30 MW
III. CLASS LOCATION AND MEETING TIME : BB301 2:00 – 3:15 TuTh
IV. CATALOG DESCRIPTION : An introduction to the application of the basic principles of supply and demand to issues in aggregate economics such as national income accounting, unemployment, growth, inflation, business cycles, and the role played by government through its fiscal and monetary policies.
V. PURPOSE : You should learn how the wealth of a nation is created; and the problems an economy faces in trying to maintain this standard of living and indeed in helping it to grow over time. To do this, you will be presented with several principles (def: ideas that almost all economists agree upon) and theories (def: not all economists agree) that deal with the workings of our economy. These should be learned. In addition, it can be said that becoming an economist is learning to think like an economist. Memorization of principles is not enough (or very useful); you will also learn to apply these principles to real-world situations in order to obtain useful results. In other words, hopefully you will learn techniques that will be helpful in later life.
VI. COURSE OBJECTIVES : Upon completion of this course, the student should be able:
- to apply the principal economic methodologies and tools, including opportunity cost, marginal analysis, and supply and demand to analyze and critique historical and current economic issues; and describe how to use these tools to be responsible citizens.
- to gather and present historical information on, and to describe the construction, measurement issues, and importance of GDP, the unemployment rate, the inflation rate, and the other major national income accounts to society’s income and welfare.
- list the major factors that influence GDP growth, inflation, and unemployment; and describe how changes in the above affect the business environment, and the standard of living of the economy’s citizens.
- be able to use Aggregate Supply and Demand to solve for the (multiplied) impact of spending, supply shocks, and policies on the nation’s GDP and prices.
- be able to show how changes in foreign country incomes, tariffs, and exchange rates influence trade and domestic country income and prices, and to describe the differences between competing economic systems.
- describe the structure of the Federal Reserve, how monetary policy is made, and how monetary policy choices affect interest rates, GDP, prices, and society’s welfare.
COLLEGIATE ASSURANCE OF LEARNING OBJECTIVES: Bachelor of Arts in Business (BAB) and Bachelor of Science in Business (BSB) programs : Graduates of the Bachelor of Arts in Business (BAB) and Bachelor of Science in Business (BSB) programs shall be able to:
Goal 1: Fundamental Knowledge ¾ Demonstrate a fundamental knowledge of the core business disciplines. Goal 2: Problem-Solving and Decision-making ¾ Demonstrate effective problem solving and decision making skills in business situations. Goal 3: Information Technology ¾ Apply information technology tools appropriately in the analysis of business problems. Goal 4: Ethical Issues ¾ Perform a structured analysis of ethical issues in business. Goal 5: Global and Multicultural Dimensions ¾ Demonstrate knowledge of the global and multicultural dimensions of the modern business environment. Goal 6: Oral and Written Communication ¾ Communicate effectively in oral and written formats. Goal 7: Foreign Language [Bachelor of Arts in Business Programs Only] ¾ Understand, speak, read, and write a second language at the intermediate level.
VII. CONTENT OUTLINE : I. Introduction A. About Economics (ch. 1)
- Graphs and their interpretation (ch. 1 app.) B. Opportunity Cost, Production Possibilities. (ch. 2) C. Demand, Supply and Markets
- Demand (ch. 3, pp. 39-45)
- Supply (ch. 3, pp. 45-48)
- Market Equilibrium (ch. 3, pp. 48-55) D. Measuring the Economy
- The U.S. Economy (ch. 5)
- The National Income Accounts (ch. 7, pp. 112-127)
- Eco. Growth & the Business Cycle (ch. 8, pp. 131-145)
- Measuring Unemployment and its Effects (ch. 8, pp. 135-141)
- Inflation (ch. 8, pp. 141-149) II. Keynesian Macro Theory A. Aggregate Expenditure
- Consumption (ch. 9, pp. 152-159)
- Investment & Equilibrium (ch. 9, pp 159-164)
opportunity to relate to me the effort imparted (or not!) by your fellow group members. Grades may be adjusted – either upwards for those especially praised by their fellow members, or down for those who participate less. Those who don’t participate will receive no credit! If it so happens that (due to withdrawals) your group falls below three members, let me know and I will try to reassign you to other groups.
XII. ATTENDANCE POLICY : Students are advised to be familiar with the University’s attendance policy as stated in the current 2005 – 2007 Undergraduate Bulletin. Economics is a cumulative subject in that current material builds on past material, and thus consistent class attendance is necessary for learning. Over the years it has become clear to me that those who have a problem “sleeping in” also have a problem getting good grades. Learn from others’ mistakes! Additionally, as understanding (as opposed to memorization) is important in economics you will find it helpful to do the reading before class (as opposed to solely before the exam) Also, I encourage students to ask questions in class; at any time if you feel uneasy as to what we’re doing, why we’re doing it, or how to do it, then throw up your hand and ask! Also, if you find me going too fast, slow or whatever, let me know.
XIII. TEXT : MACROECONOMICS, Sixteenth Edition, McConnell and Brue
XIV. PREREQUISITES : Mat 117, 120, 140, or 150; or an ACT math standard score of at least 23; or consent of instructor.
XV. ACADEMIC HONESTY POLICY : Students are advised to be familiar with the University’s honesty policy as stated in the current 2005 – 2007 Undergraduate Bulletin. Please be advised that it is the policy of the College of Business and Public Affairs that all instances of academic dishonesty will be punished and the name(s) of the offender(s) will be reported. The collegiate honesty policy is posted in each classroom and at: http://www.murraystate.edu/cbpa/PDF/Honesty.pdf. All students should familiarize themselves with it. Students should also be familiar with the collegiate ethics policy which can be found at: http://www.murraystate.edu/cbpa/PDF/Ethics.pdf.
XVI. Murray State University does not discriminate on the basis of race, color, national origin, sex, religion, marital status, age, or disability in employment, admission, or the provision of services, educational programs and activities, and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford individuals with disabilities and equal opportunity to participate in all programs and activities. For information regarding nondiscrimination policies contact the Office of Equal Opportunity, 270-762- (V) or (270) 762-3311 (TDD).
