ECON 131 PRINCIPLES OF ECONOMICS II:  MACROECONOMICS

Analysis of economic systems with emphasis on the forces determining levels and changes of national income in the U.S. economy.  Describes basic economic institutions within the context of government policies concerning unemployment, inflation, and economic growth.

Course Objectives:

• To introduce you to the study of macroeconomics and to the methodology and models that economists use to analyze and explain such macroeconomic problems as inflation and unemployment.

• To provide you with a foundation for understanding how the U.S. economy works compared to other types of economic systems.

• To provide you with basic economic tools for analyzing how the prices of goods and resources are determined and how these goods and resources are allocated among competing uses and users.

• To help you to interpret economic data/indicators that provide information about the performance of the U.S. economy.

• To help you to understand the forces that change the level of national output, income and employment.

• To provide you with the basic foundation for understanding and evaluating national fiscal policy (government spending and taxes), the national budget, and the national debt.

• To introduce you to the nation’s banking/monetary system and to help you to understand and evaluate national monetary policy (including the role of the Federal Reserve System/the U.S. central bank) and the effects of monetary policy on total spending, output, income and employment.

Math 24 or Math 25 placement; and Eng 22 or 60 or Eng 100 placement

Textbook:

1.  William Boyes &Michael Melvin, Macroeconomics.
2.  James Clark &Janet Wolcutt, Study Guide.

Grading Policy:

Grades will be allocated as follows:  A=90-100%; B=80-89%; C=65-79%; D=51-64%; F=0-50%.  An N grade will be given only under extreme circumstances (e.g., medical emergency) and where students have demonstrated a willingness to learn by regular attendance in class.  Students who disappear from the class without officially withdrawing from the class or without contacting the instructor will receive a failing grade.

Attendance Policy:

Your learning in this course will suffer if you fail to attend class.  Attendance will be taken each day.  Four or more unexcused absences will very likely result in a failing grade.

Requirements:

1.  Homework (Textbook 5 pts. each, Study Guide 1 pt. each); 56 points total
2.  Quizzes (5 points each); 20 points total
3.  3 Unit Exams (60 points each); 180 points total

Reading Assignments:

You are required to read all assigned readings prior to class, and  to be prepared to discuss them in class.  Lectures are only intended to supplement and complement your readings, not substitute for them.

Homework:

Assignments include math problems, fill in the blanks, multiple choice questions and/or brief essay questions that will reinforce your understanding of basic economic concepts.  Late Assignments: any assignment that you submit after the due date will be counted as late.  A 10% daily penalty deduction will be applied to each late assignment.

Quizzes

Quizzes are given in the first 5 minutes of each class (so don’t be  late!).  They will include multiple choice or fill in the blank questions based on material covered in the previous lecture.  You will not  be allowed to retest or make up missed quizzes.  Your two lowest  quizzes will not be included in calculating your total points/final  grade for the course.

Exams

Exams include a mix of multiple choice, true/false or fill in the blank questions; math problems; and one or two brief essay questions.  An unexcused absence on the day of an exam will result in a zero score and you will not be allowed to make up the exam.

Disclaimer

The information on this web page should be viewed only as general guidelines for this class and is not intended to be all inclusive as modifications may be necessary.
 

Topics	Chapters
Unit 1- Introduction  to Economics & Economic  Systems (Review)
Intro:  Definition, Scarcity, Choice, Opportunity Costs, Specialization, Trade	1, 2, 21 (sec. 2a, 2b, 3)
Price/Market System:  Markets, Demand, Supply, and Price	3, 4 (sec. 1)
Economic Systems:  Capitalism, Socialism & Mixed Economy	Handouts, 19 (sec. 5)
Circular Flow Model:  Household, Business,   Goverment, International sectors	4 (sec.5), 5 (sec. 1)
Private Sector vs. Public Sector	4, 5
Unit 1B - Macroeconomic Basics:  Measuring National Economic Performance
National Income Accounting:  Gross Domestic Product, Price Indexes	6
Unemployment and Inflation	8
Foreign Exchange Markets & the Balance of Payments	7
Unit 2 - Macro Models:  Aggregate Demand/Supply Model; Keynesian Model
Macroeconomic Equilibrium:  Aggregate Demand & Aggregate Supply	9
Aggregate Expenditures	10
Income & Expenditures Equilibrium	11
Fiscal Policy	12
Unit 3A - Macro Policies:  Monetary Policy, Fiscal Policy
Money & Banking	13
Monetary Policy	14
Macroeconomic Policy: Tradeoffs, Expectations, Credibility & Business Cycles	15
Macroeconomic Viewpoints:  New Keynesian, Monetarist, New Classical	16
Macroeconomic Links Between Countries	17
Unit 3B - Macro Issues:  Economic Growth  & Development, Trade & Finance
Economic Growth & Development	18, 19
World Trade & Trade Restrictions	20, 21
Exchange Rate Systems & Practices	22

 

This website was created by Denise Wong and Ellen Wong as part of a project for Cent 102 at Honolulu Community College.