203 syl 14

Econ 203-001 Principles of Macroeconomics Sring, 2014 9:10-10:05 am MWF Grise Hall 439

                                                                                                                                           INSTRUCTOR: William Davis, Associate Professor of Economics
                                                                                        Department of Economics Grise Hall, 423   Office phone/voice mail. 502-745-3123
                                                                           FAX 270-745-3190   e-mail bill.davis@wku.edu Web page: http:/www.people.wku.edu/bill.davis
                                                                                 Office Hours Office Hours: 8-9am, 10-11:45am, 1:40-2:40pm M/W/F; or by Appointment

Daily Reading of the Wall Street Journal or The Economist or The Financial Times is encouraged. Additional readings and assignments will be announced in class and/or posted on the course web page. See also the sources linked to the course web page.

1. A seating chart will be used to gather information on student attendance. Although no strict attendance policy is enforced excessive absences is interpreted as a low level of commitment to the course and will be considered appropriately in the "class participation" component of the grade. Previous experience indicates that excessive absences results in poor performance and lower course grades. Classroom conduct conducive to learning is a necessity. Therefore, chatter and third party discussions that are not part of the class activities, disruptive behavior, use of electronic media (such as text messaging and laptops) that are not part of the announced class activities are not permitted. Infractions will result in disciplinary action that could result in dismissal from the class.

Spring 2014 mester at a Glance http://www.wku.edu/registrar/academic_calendars/documents/spring_semester_glance.pdf

Spring 2014 Final Exam schedule https://www.wku.edu/registrar/academic_calendars/spring_final_schedule.php

Blackboard Forums: *********

Econ Club Facebook Page http://www.facebook.com/groups/297132550358241/297626683642161/

I. Introduction: 10 Big Ideas Cowen and Tabarrok (C&T), chp.1

A. Incentives Matter

B. Importance of Good Institutions

C. Trade-Offs

D. Thinking on the Margin

E. Don’t Mess with the Laws of Supply and Demand

F. Wealth and Economic Growth

G. Institutions Matter

H. Economic Cycle Can’t be Avoided but Can Be Moderated

I. Prices Rise When the Government Prints Too much Money

J. Central Banking is a Hard Job

K. Economics is Fun

II. Power of Trade and Comparative Advantage (C&T), chp. 2,

III. Supply and Demand (C&T), chp. 3,4,5

A. Supply and demand

B. Equilibrium/Market Clearing processes

C. Price Ceiling and Floors

III. Economic Growth (C&T), chps. 5,6,7,8,9

A. GDP: Measuring Progress

B. The Wealth of Nations fn Economic Growth

C. Growth, Capital Accumulation and Economics of Ideas

D. Saving, Investing, and The Financial System

E. Stock Markets and Personal Finance

IV. Business Fluctuations (C&T), chps. 10,11,12,13

A. Unemployment and Labor Force Participation

B. Inflation and the Money Supply

C. Aggregate Demand/Aggregate Supply Model

D. The Real Business Cycle Model: Shocks & Transmission Mechanisms

V. Macroeconomic Policy and Institutions (C&T), chps. 14,15,16,17

A. The “FED” and its tools

B. Monetary Policy

C. The Federal Budget: Taxes and Spending

D. Fiscal Policy

V. International Economics (C&T), chps.18,19

A. International Trade

B. International Finance

This mini-documentary from the Center for Freedom and Prosperity Foundation is an illustration of the continuing dispute over the causes of and remedies for the "Great Depression". A similar argument is going on today relative to the "Great Recession"http://www.youtube.com/watch?feature=player_embedded&v=xWAgt_YCNuw

Composition of Course Grade:
1. Test #1                                                                                                              100 points
2. Test #2                                                                                                              100
3. The best five of six 10 point quizes                                                                      50
4. 25 weekly posts on the class forum-two points
each (details in class)
Accepted Sources: Wall Street Journal
The Economist Magazine
NY Times Anything from
the The Library of Economics and LIberty
or any threaded disusssion
from My Favorite Blogs or articles from
the "Readings" links

Economists-Milton Freidman, Thomas Sowell, Walter E. Williams 50
NOTE: forums will be closed at midnight on
Sunday of each week. Make up posts are allowed
only for "excused" misses.

Course grade: accumulated points (90%) 472.5 or more = A
(80%) 420-472.0 = B
(70%) 367.5-419 = C
(60%) 315-366 = D
Less than 315 = F

Extra Credit opportunities: From time to time there will be special speakers or other events on campus that will provide opportunities to earn exra credit. Details will be provided in class.

Student Disability Services In compliance with university policy, students with disabilities who require academic and/or auxiliary accommodations for this course must contact the Office for Student Disability Services in Downing University Center, A-200. The phone number is 270 745 5004. Please DO NOT request accommodations directly from the professor or instructor without a letter of accommodation from the Office for Student Disability Services