ECONOMICS 202-004: PRINCIPLES OF MACROECONOMICS, Fall 2011

CRN 81903, TTh 11:30 12:45 PM, Classroom: G20 Ming Hsieh Hall (MHH).

INSTRUCTOR: Professor Arabinda Basistha Office: Room 410 B&E, 304-293-7854 Office Hours W 2:00 5:00 or by appointment. Email: abasisth@mix.wvu.edu TEACHING ASSISTANT: Mr. Seydina Sene, seydina.sene@mail.wvu.edu, 304-2935993, room 233, B&E Bldg. TA Office Hours: TTh 1:00 2:00 PM. COURSE OBJECTIVES: You will learn basic facts and analytical methods for understanding economic growth, booms and recessions, inflation, unemployment, GDP, the banking system, and how government policy affects the economy. Obtain a richer understanding of key issues facing you as a participant and voter in the worlds preeminent nation and economy in a time of economic crisis and change. PREREQUISITE: ECONOMICS 201. If you havent taken Econ 201 you will be dropped from this class. Im sorry, theres nothing I can do about this. For questions about enrolling, see Karen Smith in B&E 419. REQUIRED MATERIALS: Textbook: N. Gregory Mankiw, BRIEF PRINCIPLES OF MACROECONOMICS 6th ed. is the newest edition. SCHEDULE: Exam dates are firm; subjects covered on particular days may be adjusted as necessary. Aug 23: Review: Ten Principles, Chapter 1. Aug 25: Review: Thinking Like An Economist, Chapter 2. Aug 30: Review: Supply and Demand, Chapter 4. September 1, 6: Macro Data: Measuring National Income. Chapter 5. September 8, 13: Macro Data: Measuring the Cost of Living. Chapter 6. September 15, 20: Long Run Real Economy: Production and Growth. Chapter 7. THURSDAY, SEPTEMBER 22: FIRST MIDTERM EXAM (Chapters 1, 2, 47). September 27, 29: Long Run Real Economy: Saving, Investment, & the Financial System. Chapter 8.

October 4, 6: Long Run Real Economy: The Basic Tools of Finance. Chapter 9. October 11, 13: Long Run Real Economy: Unemployment and its Natural Rate. Chapter 10. TUESDAY, OCTOBER 18: SECOND MIDTERM EXAM (Chapters 8 -10). October 20, 25, 27: Long Run Money & Price: The Monetary System & Banking. Chapter 11. November 1, 3: Long Run Money & Price: Money Growth and Inflation. Chapter 12. TUESDAY, NOVEMBER 8: THIRD MIDTERM EXAM (Chapters 11 -12). November 10, 15: Short Run Fluctuations: Aggregate Demand & Supply. Chapter 15. Nov 29, Dec 1: Short Run Fluctuations: Monetary & Fiscal Policy. Chapter 16. December 6: Free class, make-up material, review. December 8: Make-up exam day. WEDNESDAY, DECEMBER 14: FINAL EXAM, 3:00 to 5:00 PM (All chapters; emphasis on chapters 15, 16). NOTE: The instructor reserves the right to change this syllabus as time and circumstances dictate. Necessary changes will be announced in class in advance when possible. GRADING: Three Midterms (weighted 20 % each, 60% total), Cumulative Final Exam (40% weight). Grades are based entirely on exam scores, and regular classworks. Exams will consist entirely of multiple choice questions. You will need the scantron form (form # 30423, blue) for the exams. Most non-exam days of class will have some classwork. Each classwork will be graded either 0 or 1. If you can accumulate at least 18 ones, you will get 5 extra credit points. If you accumulate 15 17 ones, you will get 4 extra credit points. If you accumulate 12-14 ones, you will get 3 extra credit points. If you accumulate 9 11 ones, you will get 2 extra credit points. If you accumulate 6 8 ones, you will get 1 extra credit point. Below 6, there will be no extra credit. You can make up upto one midterm exam you have a valid, university approved reason. You can make it up on December 8th, the make-up exam day, if you notify me at least two weeks in advance. If you miss two midterms for any reason or no reason at all, the

second missed midterm gets the same score (scaled) as your final exam (i.e., your score on the final exam is entered in my gradebook as your score on that midterm, appropriately scaled). If you miss all three midterms, you will receive zero as your grade in the third missed midterm. Letter grades are based on the following SCALE: F is 0-54.99; D is 55-67.99; C is 68-79.99; B is 80-89.99; and A is 90-105. I give pluses and minuses at my own discretion. Whatever your average is at the end of the semester, I will apply the scale above to find your grade. I dont round upward. If your average is 89.9, you get a B. Not an A. My grading policies give you plenty of opportunity to do well, but I stick to them inflexibly. ATTENDANCE POLICY: Learning Economics is hard for most students. It is much easier if you come to class. Plus there will be classwork that counts towards extra credit if you do them correctly. Everything I put on the exams will be covered in lecture. Some things covered in lecture (and therefore on exams) are not in the readings. There is more material in the text than there is in lecture, so coming to lecture and taking good notes will help you study efficiently. ACADEMIC DISHONESTY: Academic dishonesty will not be tolerated. I expect academic honesty from each of you. The examination environment will deter cheating, and any cheater will leave the room immediately and will receive no credit for that exam. I will then follow up, prosecuting vigorously according to the rules and procedures of the University. Please refer to the West Virginia University Student Handbook, etc., for more information about academic dishonesty. Please note that a student will receive a failing grade in this course for cheating. SOCIAL JUSTICE: West Virginia University is committed to social justice. I concur with that commitment and expect to maintain a positive learning environment based upon open communication, mutual respect, and non-discrimination. Our University does not discriminate on the basis of race, sex, age, disability, veteran status, religion, sexual orientation, color, or national origin. Any suggestions as to how to further such a positive and open environment in this class will be appreciated and given serious consideration.

If you are a person with a disability and anticipate needing any type of accommodation in order to participate in this class, please advise me and make appropriate arrangements with Disability Services (293-6700). IF YOU'RE HAVING TROUBLE please stop by my office for a talk. The most useful thing for most students is to do practice problems, and attend class regularly.

DESIRED STUDENT OUTCOMES FOR ECON 202 After completing this course, you should be able to: 1. Understand how GDP, the unemployment rate, inflation, and economic growth are measured and be able to explain how these variables fluctuate in the business cycle. 2. Understand the difference between real and nominal variables. 3. Be able to explain the problems of high and low inflation. 4. Be able to explain the role the financial system plays in the economy. 5. Understand the factors determining aggregate demand and aggregate supply. 6. Be able to analyze macroeconomic conditions using the ADAS model. 7. Explain why productivity growth is needed to sustain high economic growth. 8. Be able to think critically about monetary and fiscal policy. 9. Understand the Keynesian multiplier. 10. Know the Federal Reserves policy goals and be able to explain how the tools of monetary policy create money and affect the economy. 11. Be able to explain how automatic stabilizers work and why fiscal policy not only has short-run but also long-run effects.