Introduction to Macroconomics

Announcements and Weekly Class Schedule

(Daily Schedule is Here)

May 11, 2007

Teacher

Professor Pat Gunning (Office: 121 Satterlee) My office hours at 121 Saterlee are

MWF: 12:00-13:50; 14:50-17:00

Classes: MWF: 10:00, 11:00, 13:50

TTH: 13:00-14:25

Other office hours by appointment, although you are welcome to walk in at any time. If I am free, I will meet with you. Weekends are possible.

Homepage: http://www.nomadpress.com/gunning/welcome.htm

Send email: James.P.Gunning@EXMAIL.USCGA.EDU

Course Description

            Economics is the study of two general subjects. The first is individual decisions and their effects on others in the market economy. The second is the government policies that have been proposed to redirect or substitute for individual decisions. A market economy is a system of exchange under the conditions of private property, specialization and the use of money. The aim of a course in economics is twofold. The first part is to help students understand complex market interactions in the absence of government policies. In other words, it is to help understand capitalism. The second part is to help students learn how to evaluate government policies. This course first gives an introductory understanding of capitalism and then provides tools needed for students to evaluate government policies. Its focus is on the traditional issues of macroeconomics: economic growth, unemployment, money, inflation, business cycles and international trade.

This is a Reading Course!!!

            The procedure for learning the subjects of economics is to read about them. Although there are power point lectures for each textbook chapters, these will be used mainly as a guide for classroom discussion. Students are expected to have read the assigned material before class and to be prepared to discuss it. To benefit most from this course, students should prepare for each class by reading and studying the assigned material from the daily schedule.

            To determine whether you have understood the meaning of the textbook material, you should try to answer the questions at the end of the chapter. If you cannot answer a question with absolute confidence that you are correct, you have probably not understood the material in the book. You should either contact the professor about this or bring the matter up in class.

Grading and Examinations

            Grading is based entirely on test performance. Each of the two exams counts 50%.

Examination Questions

            Examination questions will be composed of a subset of the total set of questions at the end of the chapters. For example, the Chapter 3 contains 21 questions. Out of the 21, I may choose only 3 for an examination. There will be no questions on the exam that are not part of the list, except for cases where the question suggests the student should be able to do a problem of a particular sort. In that case, a problem of that sort may be included. Students are responsible for blue questions only. Download study questions.

Collaboration Policy

            Collaboration is fully permitted except during examinations, when it is completely prohibited.

Preparation for Exam: 

            I will be happy to receive your attempts to answer questions prior to the exam. I will not grade such questions but I will give you feedback. If you are uncertain about your answer to a question, you may email me your answer and I will try, under normal circumstances, to reply within 24 working day hours.

                          Schedule (Note the items marked in red)

Week 1                       What is a Market Economy: Chapter 1: p. 1 to top of p. 4; p. 10-15; p. 19 (part 4); Skip p. 4 (Specialization, and Optimal Harmful Effects) to top of p. 10; Skip p. 17 to p. 19.). Wants, Goods, and Costs: Chapter 2: Read all. Download Chapter 1.

Week 2                       Chapter 2: continued; Resources: Chapter 3: Read all. Download Chapter 2. Download Chapter 3.

Week 3                       Resources: continued; The Private Property System, Trade and Specialization: Chapter 4: Read parts 1, 2, 5 and 6. Skip parts 3 and 4. . Download Chapter 4.

Week 4                       The Private Property System, Trade and Specialization: continued; What Causes Economic Growth?: Chapter 5: Read all. . Download Chapter 5.

Week 5                       What Causes Economic Growth?: Continued

Week 6                       The Meaning of Coordination: Chapter 6: Read page 1-18. Skip part 3. . Download Chapter 6.

Week 7                       Coordination in Market Interaction: Chapter 7: Read all.. Download Chapter 7. Suggested reading: Download Chapter 8.

Week 8                       Midterm Exam (50%); Unemployment: Chapter 9: Read parts 1, 2, and 4. Skip part 3. . Download Chapter 9.

Week 9                       Unemployment (continued)

Week 10:                    Money: Chapter 10: Read all. Download Chapter 10.

Week 11                     Introduction to the Business Cycle: Chapter 11: Read all. Download Chapter 11. Suggested reading: Download Chapter 12.

Week 12                     Keynes and Keynesian Economics: Chapter 13: Read all. Download Chapter 13.

Week 13                     Monetarism and Supply-Side Economics: Chapter 14: Read all. Download Chapter 14.

Week 14                     History of International Trade: Chapter 15: Read all. Download Chapter 15.

Week 15                     Free Trade? Chapter 16: Read all. Download Chapter 16. Final Examination

Final Examination (50%)

Textbook: J. Patrick Gunning, Introduction to Economics (manuscript).

 Here is an outline of the chapters. How this text differs from other macroeconomics books