Goals and Objectives

This course is designed to develop a basic understanding of major macroeconomic concepts, theories, and tools used in analyzing/understanding economic problems/issues that relate to the economy as a whole and relate to all of us, directly or indirectly. We will explore the reasons for a weak economy in 2001-02 after a strong performance during most of 90s.

The major issues are: The role of government and private sector in the economy, understanding of our market economy, implication of the global economy, national income and product accounts, employment and unemployment, inflation, money and commercial banking, the Federal Reserve System, monetary and fiscal policies, budget deficit/surplus and national debt, and fiscal/monetary policies impacting exchange rate and U.S. exports and imports. We have seen that since the beginning of 2001, the U.S. stock market has lost about 30 percent of its value by July 2002 any many stocks are down 80-90 percent. During the semester I will review the stock market on daily basis and analyze how stock market and the economy are related. We will approach the topics in this course in the context of the global economy.

TEXT: Economics by Cambell McConnell and Stanley Brue (2002 Ed.)

STUDY GUIDE to accompany ECONOMICS by Bingham & Walstad

Supplemental Reading: Wall Street Journal

Internet: http://www.yahoo.com/ (for today's business & economic news)

For macroeconomic data: http://www.fedstats.gov/

Policies and Procedures

Exams, Quizzes, and Assignments:

Three tests and a final exam along with four quizzes and assignments will be given in this class. Each test will constitute 20 percent of your final grade. Tests are not cumulative. The final exam will account for 30 percent of the grade and is cumulative. Each test and the final exam will have combination of multiple choice questions, problem solving, and short answer questions. One of the four quizzes score will be dropped {the lowest one) when calculating the final grade. Quizzes and assignments will constitute 10 percent of your final grade. The detailed grading information is given below

A bonus of up to three points in quiz and four points in test will be added to your quiz and test score if you participate in our Cyber Forum on current economic issues. The details of this form will be discussed in the class.

.Make-up Quiz, Test & Exam Policy : You are required to take all quizzes, tests and the final exam on the scheduled dates. No exception to this policy will be made unless there is an exceptional circumstance which will have to be documented.

Attendance Policy: The format of the instruction in this course is based on active learning environment—students attend and directly participate in the discussion on the day’s topics and issues by asking questions or questioning the information being provided. Therefore, you are strongly advised to attend the classes regularly. For the current event issues, a selected web sites on the internet are integrated into the classroom presentation and discussion. The classroom is equipped with the hardware and the needed software to tap into the materials from the web sites.

Weekly Topics and the relevant Chapters

(The online version has also selected web sites on the topics)

Week Topic Text Chapters

1 The Economic Way of Thinking:

Scarcity-Choice-Selection, Theories & 1 & 2

Models, Production Possibilities,

and Alternative Economic Systems

2 The Tools/Mechanism of a Free Market

Economy: The Demand and Supply Analysis; 3

Price Regulations

3 Flow of Production and Income:

a. Private Sector 5

b. Private and Govt. sectors

c. Private, Govt., and the Foreign Sectors

4 National Income and Product Accounts:

GDP vs GNP; Expenditures and

Income approaches to National, Nominal and 7

Real GDP, and Other Income measures

5 TEST #1

5 The United States in The Global Economy 6

6 Determination of Income:

I. The Income-Expenditure Model 9

(Keynesian Economics).

7 The Income - Expenditure Model Continues.

Government Purchases and Export/Imports with Multiplier Effects 10

8 Determination of Income:

II. Aggregate Demand and Aggregate Supply Model 11

8&9 Fiscal Policy: Taxes and Government

Expenditures, Legislative mandates & Discretionary

Fiscal Policies, Budget Deficit/Surplus, 12

Politics of Fiscal Policies

9 TEST #2

Week Topic TEXT CHAPTERS

10 Money and the Banking System 13 &14

11 The Federal Reserve System and the 15

Monetary Policy Tools

12 Inflation, Unemployment, and Supply

Side Economics 8,17

13 TEST #3

13 The Economics of Deficit/ Surplus & Public Debt 18

14 International Finance: Foreign Exchange Market 38

and Balance of Payments

15 Reviews and Quiz

16 FINAL EXAMINATION Comprehensive

Grading

Your course grade will be determined by the following:

Test #1 20%

Test #2 20%

Test #3 20%

4 Quizzes 10%

Final 30%

Current Event Bonuses on cyber forum

We plan to acquire the following skill and knowledge upon the completion of course:

· Analyze, synthesize, evaluate and interpret information and ideas relating to macroeconomic issues.

· Solve quantitative and mathematical problems relating to GDP, fiscal and monetary policies, etc.

· Interpret graphs, tables, and diagrams

· Read and listen with comprehension and critical perception

· Recognize fallacies and inconsistencies in policy statements.

· Develop a large and varies vocabulary relating to macroeconomic issues.