PRINCIPLES OF MACROECONOMICS
ECON 203
PRINCIPLES OF
MACROECONOMICS
Fall 2010 Tests: 1, 2, 3, 4, 5, 6
Spring 2011 Tests: 1, 2,
3, 4, 5, 6,
Fall 2011 Tests: 1, 2, 3, 4, 5, 6
Spring 2012 Tests: 1, 2, 3, 4, 5, 6
(*Note: the class outline changes each semester,
so quizzes change)
Macro Data Websites: BEA Data /CIA World Fact Book /
Economagic (data)/ Penn World
Table
CONTACT INFORMATION:
Dr. Brian
Goff (Grise 414/745-3855)
Office Hours: M 9-12; W 1-4
(I am in
my office or on campus most days from around 9-4 except around noon; Feel
free to stop by or make an appointment any time I'm around)
OBJECTIVE: The course is designed to provide an understanding of
economic
forces, outcomes, and decisions at the national and international levels with
special attention to topics such as the costs and benefits
of markets and trade, economic growth, measurement of national income, the
nature and role of monetary and fiscal policy, business cycle models, and other
topics. The discussion of these concepts, ideas, and policy issues
draws attention to ethical issues, problem solving & critical thinking,
global issues, and basic business functions. Special Note: This course fulfills one
requirement for General Education category C -- Social and Behavioral
Sciences.
TEXTS/MATERIALS:
Online Readings
GRADES: Your final grade is based on
your final average: A=90+ B=80-89 C=70-79 D=60-69 F<60. Do not expect to
"negotiate" or do "extra credit" work for a higher grade
Bi-Weekly Tests
(1-6) = 75%
(Drop lowest score)
Test 7
= 15%
Assignments (4)
= 10%
Total
= 100%
Bi-Weekly Tests: NO makeup or early quizzes
will be given. Your lowest quiz score will be dropped. If you miss
more than one quiz due to a signficicant event (illness, WKU activity,
family matters, ...), your final exam will be weighted to compensate. You
should clear missed quizzes (above one) with me in advance if possible or as
soon as practical if not known in advance.
Test 7: An exam over questions from all of the semester
quizzes.
Assignments: One is a map
assignment; the others are brief reports based on readings or videos.
These must EXACTLY follow the Brief
Report Format. Reports that deviate from this format will receive zero
or half credit. Brief reports are individual assignments. You may
not copy from another student. An assignment must be turned in by the
deadline to receive any credit.
MISCELLANEOUS & CLASSROOM POLICIES:
Last day to drop with a "W" or change to audit is listed in the Academic
Calendar. If you have an ADA covered disability requiring special
consideration, please register with the ADA Compliance Office, and then see
me. If class is canceled unexpectedly, any exam will roll back to the next
class meeting.
Classroom Policies: Orderly behavior
and respect for others who are speaking (including me) is expected. No food or
drink permitted except for bottles with caps. No cell phone or other electronic
device use (including laptops) is permitted. If late, please enter with a
minimum of disturbance and be seated in the nearest seat. Distracting or
inappropriate behavior is not permitted. Individuals involved in incidents
that significantly violate these policies will receive a warning and then will
be notified of a letter grade reduction per subsequent incident. Also see
FAQ
COURSE
OUTLINE (Subject to small
modifications along the way)
Economic Systems
Week 1
T (Jan
24) Class Administration; Markets &
Prices; Systems; Importantce of Prices, Critical
Thinking & Economic Problems: Price Controls (CEE); Gasoline Prices (STL Fed);
Th (Jan
26) Ethics & Economics
(CEE); Tradeoffs;
Comparative Advantage (CEE);
Free Trade (CEE); Creative Destruction
(CEE);
Week 2
T (Jan
31) Market Systems & Rich-Poor around
the World: Standards of Living & Growth (CEE) Empirics of Economic Growth (CEE) Market Freedom and Growth (CEE)
Assignment 1: Living Standards Map
(Due beginning of class on Thursday) -- GDP Per Capita Country Cross
Sections (CIA Factbook Link)
Th (Feb 2)
Test 1
Key Terms: Supply-Demand Analysis; Market Prices; Comparative
Advantage; Creative Destruction;
Protectionism; Free Trade; Economic Growth (See CEE & Wikipedia)
Supplemental Links Weeks 1-2: Basics PPT;
Gapminder GDPPC-Life Expectancy; Economic
Development in Lights
IMF Map of GDP Per Capita; Fraser
Economic Freedom Index Map (via Cato) Source Data ;
Heritage Economic Freedom Index;
Free Trade: Why are Economists & Noneconomist so Far
Apart? (STL Fed) ; Protectionism & Comparative Advantage (Dallas Fed)
;
Economic Freedom of the World Map
Measures of the
Macroeconomy
Week 3
T
(Feb 7) Key Macro Measures (See Wiki for
definitions): GDP; Real GDP; Real GDP growth; ; Unemployment Rate; National Net Worth; Economagic Most
Requested Data
Th (Feb 9) Comparing Purchasing
Power over Time: CPI (CEE); Movie Box Office
Data; Sears Catalogue Data Per Labor Hour
(Sears Catalogue
Data)
Inflation & Price Indexes
Week 4
T (Feb 14) Foreign
Exhange & Purchasing Power: Big Macs & PPP (Dallas Fed)
Th (Feb 16): Test
2
Key Terms: GDP; CPI; GDP-Implicit Price Deflator; Unemployment Rate; Purchasing
Power Parity; Law of One Price; GDP;
Unemployment Rate; Inflation rate; (See CEE & Wikipedia)
Supplemental Links Week
3-4
GDP Graphics;
Economist Big Mac Website ; Excel File w/Gasoline Prices ; Bankrate.com; House
Hunters International
(PPP-related)
Dollar Value PPT
Current Issues Related to Macroeconomic
Growth & Development
Week 5
T (Feb
21) Fairness & Wealth Distribution:
Consumption Equality Slide - Article;
Income Distribution (CEE) and Income Inequality (STL Fed); MR World
Graphic
Consumption Equality; MR What Have We Learned About Income
Distribution
Th (Feb
23): Development, World Poverty and Proposed Remedies Foreign Aid (CEE)
Assignment 2:
Brief Report (due Th beginning of class) on African
Economic Problems (WSJ) and My (Robert Barro) Luncheon with Bono (Business
Week)
(Combine the two readings into one report)
Week 6
T (Feb 28)
Economic Perspectives on Sustainability and Limits
to Growth: Natural Resources (CEE); BG Power
Point
Th (Mar 1) Test
3
Key Terms: (See Wikipedia)
Supplemental
Links:
Fraser
Report on Economic Freedom (Fraser Institute);
Julian Simon on "X Factor"; writings by
Julian Simon available on the WWW)
Sustainable Development (Dallas
Fed); MR Income Inequality "Blame Parents" Cowen on Aspects of Income Inequality
Fair Trade Revolution (WSJ Book Review)
Week 7 Spring Break
MacroFinancial System
Week 8
T
(Mar 13) U.S. Monetary & Financial
Systems: Primer on
the Federal Reserve & Banking (Dallas Fed) Gold & Paper
Standards (CEE and Gold Standard and Great Depression
)
Th (Mar
15) Inflation, Interest Rates, & Fed: Inflation (CEE) Interest Rates (CEE); Monetary Policy; Bloomberg Rates;
STL
Fed I-rates; STL
Fed Inflaton
Week 9
T (Mar
20) Eurozone Problems Continental Divide (Richmond Fed)
Th
(Mar 22) Test 4
Key Terms: Federal Reserve
System; Monetary Policy; Open Market Operations; Inflation; Treasury Bill Rate;
LIBOR; Recession;
Great Depression; Business Cycle; Fiscal Policy; Government Spending Multiplier;
Banking/Financial
Panics
Supplemental Links: Money,
Banking, Interest PPT Hyperinflation
Charts Spain Bond
Rate Italy Bond Rate
Portugal
Bond Rate Greece Bond
Rate German
Bond Rate
Business
Cycles
Week 10
T
(Mar 27) Business Cycles Stats: Business Cycles
(CEE); U.S. Business Cycle Data
(NBER); Long Run Growth v. Recessions Graphic; The Great Depression
(CEE)
Th (Mar 29) Thinking about Responses
to Recessions: Government Can't Create Sustainable
Jobs Fiscal Policy Stimulus
(Cochrane-Chicago
GSB)
Week 11
T (Apri
3) Recession and Financial
Crises 2008+ Goff 2008 Financial Crisis
Slides (ppt version) StL Fed Timeline
Benefits/Risks of Debt:
Household Debt (STL
Fed)
Assignment 3: Brief Report (due T beginning of class) on Banking Crisis
of 1930s Text or Video (don't include panel
discussion)
Th (Apr
5) Test 5
Key Terms: Recession; Great Depression; Business Cycle;
Fiscal Policy; Government Spending Multiplier;
Supplemental Links Weeks 10-11: Depression Era
Stats; Gold Standard and Great Depression; Depression Statistics
;
Excel File with
Classroom Graphs; Barro on infrastructure spending ; Bernanke Speech about Great Depression
MR Problems of Fiscal Stimulus; Economic Crisis in Iceland, England, & U.S
(STL Fed); Fiscal Policy Stimulus (CEE)
Current Issues
Related to Macroeconomics
Week 12 "Catch Your
Breath"
T (Apr 10) Special Discussion
Class: Mexico, Drugs, and Macroeconomics: NAFTA; More Mexico ; Mexico Instability & Drugs;
Assignment 4: Brief
Report (due at beginning of class) on Mexico's
Drug War (BBC via Youtube) ; Narco War Next Door (Current via
YouTube, requires Google login);
Th (Apr
12) Special Discussion Class: Mexico, Drugs, and
Macroeconomics: NAFTA; More Mexico ; Mexico Instability & Drugs;
Assignment 4: Brief
Report (due at beginning of class) on Mexico's
Drug War (BBC via Youtube) ; Narco War Next Door (Current via
YouTube, requires Google login);
Week 13
T
(Apr 17) Macro
Views on Healthcare:
Health Care (CEE) & "Life is Good" (Minneapolis
FR); Is Healthcare Different? (CEE) Gapminder
GDPPC-Health%;
Th (Apr 19)
Macro Views on Healthcare: Digital Doctoring Reform Ideas: Health Wealthy Wise (Hubbard and
others) Med Innovation PPT
Key Terms: U.S. Federal Debt; U.S.
Budget Deficit; Medicare; Social Security;
Supplemental Links:
Healthcare Pricing
Restrictions Zimmer Q&A on Health
Reform Health Care Expenditure OECD Data; Canada Wait
Times;
OECD Care Resources & Use;
Week 14
T (Apr 24) Fiscal Issues over the Next
40 Years -- Debt, Medicare, SS
Wiki US Public Debt Page Debt/Deficits/Entitlements (STL
Fed) (if really
interested, see Cochrane Video)
Fiscal Issues over the Next 10 Years: U.S. States; U.S.
Federal;
Th (Apr 26) Test 6
Week 15
T (May
1) Key Macro Lessons
Th (May 3) Test 7
Brief Report
Format
The Brief Reports must PRECISELY adhere to the
following format unless otherwise indicated (such as the Map excercise).
You will receive full for reports that adhere to the instructions in all
details. Half credit will be given for reports that deviate from the
instructions in minor ways. No credit will be given for reports that
deviate from the instructions in significant ways.
1. Rports must be
neatly typed or printed originals (NO SCRIPT -- "cursive") -- no crumpled
papers.
2. All sentences must use standard American English -- subject, verb,
object (when needed), correct punctuation, aggreement of subject and verbs, and
so on.
3. Do not share information with others in the class about your
reports. Reports that appear to be copies or very close to copies will
receive no credit.
4. Reports must be turned in by the deadline to receive
any credit. You are encouraged to turn them in early if you may be absent.
Unexpected circumstances the day they are due do not alter the deadline.
5.
Reports must adhere to the template below. Reports that deviate from its
format will receive no credit. (Text which is in italics below is for you to
fill in and not for you to copy on the summary. For example, do not write
"paragraph 1".)
Your Name
Brief Reports #(put
report # here)
(Put Titlle Here -- can be
shortened title; Also put source here)
Paragraph #1: 1-2 sentences
explaining the main question, issue, or problem addressed in the
readings
Paragraph #2: 2-6 sentences explaining a key point(s) from the readings.
Paragraph #3:1-2 sentences describing a particular point which was especially important to you, with which you disagree, or which was unclear.
