COURSE DESCRIPTION

Instructor: J. Georg Cerf

Course Description: Macroeconomics

An introduction to economic concepts and their application to problems of unemployment, inflation and economic growth.  Government fiscal and monetary policies are examined along with international aspects of open economies.

Materials:

• Required: William J. Baumol, Alan S. Blinder, John L. Solow. Macroeconomics, Principles and Policy  14^th edition, (Cengage Learning, 2020,2016)  ISBN- 978-1-337-79498-5)  

The text is also available as an eTextbook; the following link has more information  eTextbook   There are relatively few changes from the 13th edition, mostly text updates of recent events and some different Test Yourself and Discussion Questions. 

Course Learning Objectives:

I. Measurement of Macroeconomic Performance

a. Understand the construction of the central measures of macroeconomic performance (real and nominal GDP, inflation, unemployment) and describe the recent trends in these measures.

b. Summerize the trend in income inequality and the measurement of income inequality.

c. Define productivity growth and explain its importance.

d. Explain the determinants of the natural rate of unemployment and the importance of the natural rate in macroeconomic policy decisions.

II. International Economic Interactions

a. Explain why net exports = net foreign investment,

b. Explain why saving minus investment = net foreign investment

c. Explain the determination and consequences of exchange rates.

III. Modeling Macroeconomic Interactions

a. Understand the empirical foundations of the aggregate supply curve (i.e., the Phillips Curve) and the importance of expectations.

b. Explain the characteristics of aggregate demand and the nature of short-run and long-run macroeconomic equilibrium. 

IV. Fiscal Policy

a. Define fiscal policy (discretionary and non-discretionary) and explain the arguments for and against the countercyclical use of fiscal policy.

b. Explain the impact of fiscal policy changes on interest rates and the balance of payments.

V. Monetary Policy

a. Understand the role of commercial banks and the Federal Reserve System in money creation.

b. Explain the short-run and long-run impact of changes in the money supply on GDP, interest rates, inflation and unemplyment.

c. Use the above analytical tools to interpret economic debates on the macroeconomic consequences of fiscal and monetary policies.

Course Overview:

There are four components to this course:

• Definition of economics, production possibilities, demand and supply analysis, macroeconomics-overview, economicv growth:  (Text Chapters 1-7, 7class sessions)

• Aggregate demand and consumption, demand, supply side equilibrium: (Text chapters 8-11, 6 class sessions)              

• Short term and long term equilibrium between unemployment and inflation, fiscal and monetary policy:  (Text chapters 12 - 16: 6 class sessions)

• Government deficits and debt, unemployment and inflation, international monetary system, open economy macroeconomics, optional topic (Text chapters 17 - 20, Apx 9,11: 7 class sessions)

The objective of the components is to develop and practice analytic skills.  The  concepts are presented using algebra and illustrated by graphs. The goal of the course is to use these analytic techniques and see how economists examine the effect of a change in one aspect of the economy has on the economy as a whole. 

Course perspectives:

Since this is an introductory course we will be using models simpler than the complexities we perceive outside the classroom.  Nevertheless these models are the common ground shared by most economists and provide the basis for more sophisticated models, conclusions and policy. 

Accordingly, the course has two purposes: to demonstrate how economists explain the reality they perceive (the models) and to encourage you to develop an ability to assess a set of circumstances, apply relevant models and to reach and present defensible policies and conclusions.  The text and classroom activities are designed to demonstrate how economists analyze various macroeconomic situations and policies.  Examinations, exercises, research activities and discussions (classroom or individual) give you practice in developing these skills.

Components of the course grade:

A course grade of A through F is based on the grades for each of the following:

          Examinations:    65% of course grade

Three interim examinations (exams 1-3) and the final exam (exam 4A +B) will test knowledge of the basic concepts and ability to apply the models to actual and hypothetical situations.  Each will include material covered since the previous examination and consist of an answer to one of two questions on each chapter/topic.  Instructions on the exams will specify the number and types of questions to be answered.  Examinations consist of  essay questions and graphical, arithmetic or algebraic based problems.  Exam 4B will be a response to one of three general questions which will provide an opportunity for you to demonstrate your degree of mastery of the concepts and applications encountered during the course.

If you leave and return to the examination room during the time of the examination, a one letter increment deduction (for example from B+ to C+, or 10 points) will apply to that examination grade. If you have questions regarding examination questions, I will respond only while all students are present.

The only opportunity to make-up a missed exam 1 - 3 will be at a date and time specified toward the end of the semester..

Each of the three highest grades on exams 1 - 4A and 4B will count 14 percent toward the course grade while the lowest grade on exams 1- 4A, will count 9 percent toward the course grade. 

            Research projects:   25% of course grade

The research component consists of a typed components: a proposal (2.5 percent of the course grade) and three components (A, B, and C) each counting 7.5 percent toward the course grade.

The research topic will be an evaluation of fiscal and monetary policies in a foreign country.  See the Research Requirements section of this web site for specifics and grade criteria.

Each of the Parts A, B, C has required graphical, mathematical or empirical data components. There is a one letter increment deduction (for example, the difference between an A and a B or 10 points) from the grade if the proposal and/or research component is turned in after their respective due dates (illness and emergencies excepted).

                  Class activities:  10% of course grade

Completing the optional exercises and participation in the following activities can increase or decrease your course grade:

• contributing definitions and examples, responding to questions, contributing to the classroom discussions of the problems

• demonstrating you have completed the text problems indicated on the Course Schedule (I will describe the procedures for doing so at the end of the semester.)

• seeking assistance, if you or I feel it is advisable, relating to course material or research activities

The policy on attendance for this course is I expect and encourage you to participate in asking questions, provide examples and to convey your viewpoint on economic topics during class sessions or at other times.

                I use the following grades to assign class activities grades:

A:                             A    Consistent participation in class activities or a continued improvement over the semester

                        B:                             B    Occasional participation in class activities or sporadic improvement

                        C:                             C    Little or no participation in class activities

                        D/F:                         D/F    Disruptive or negative influence on the participation of others through distractions during class, inappropriate comments or conduct

Contact me as soon as you are aware of an illness or emergency that prevents you from completing a required course component (exam or research component).  We will figure out  a way of your handling the situation which is appropriate to the circumstances.  Procrastination, a heavy work load, a clustering of exams, a missing computer diskette on the day an exam or research component due dates is not a basis for an extension.  Unanticipated circumstances over which you have no control can be the basis for us to agree on a substitute due date for a course grade component.

Calculation of grades:

I use the following to convert course work grades into interim and final course grades: 

Letter grades for the research projects and participation will be converted to numeric grades using the first and second columns.  Final and interim grades are calculated numerically based on their respective weights and converted to a letter grade for the course which in the case of the final course grade receives the grade points shown in the right column.

In the conversion process for interim and final grades, I use a 2 digit decimal (e.g. 89.44) to determine the letter grade and whether a + or - is appropriate.  Thus the 89.44 would be B+; 73.30 would be a C-; 93.79 would be an A.  Even though the College does not have a course grade of A+ or D-, either can be earned for an individual course component.  Requirements involving academic integrity and grades such as P, U, INC, WP, WF, WU, or WD are described in the current Undergraduate College Bulletin.

If you do not complete all of the course requirements (examinations and research projects) by the last scheduled class meeting or do not take the final examination when it is scheduled, the missing component(s) will be assigned a grade of 0 and given its (their) appropriate weight toward the final grade.

The cumulative component of the course grade is comprised of the grades for Exam 4A + 4B and the grades for the individual components of the research process.  

Organization of class time

I will cover the material indicated on the attached Course Schedule from the text supplemented by additional material.  I will devote class time to those parts of chapter or topics based on my experience of topics which benefit from verbal, graphic or mathematical demonstration and your questions. 

The research component including graphical and/or numeric elements to an occupation chosen by the student as described in the Research Requirement link on this web site and the Test Yourself and Discussion questions for the topics covered in class constitute additional activities which you can complete during the 'fourth hour' associated with each class.  As a specific classroom and time are not assignd, you can select a time and location of your choice.       

College and School of Business Policies

1) Writing Policy:  

"School of Business Writing Policy:  Because writing is a fundamental business skill, your grade for each assignment will reflect, among other things, your ability to write, even for assignments with minimum writing. Feedback on your writing will be provided as deemed necessary and, if your writing needs improvement, you should seek help from the Writing Center at (http://tutoringcenter.pages.tcnj.edu/humanities/writers-place/), from someone who writes well, or some other writing source. The responsibility to write well is yours.  My responsibility is to hold you accountable for how well you write.  Poor writing will be reflected in your final grade."

2) Students are responsible to be aware of the following policies:

Attendance/Absence Policy

Attendance Policy:  Except in the case of a TCNJ authorized absence or documented personal emergency, faculty are encouraged NOT to make individual exceptions to course assignment due dates and exams. Our work is no less coordinated or time-sensitive than many tasks encountered in the workplace and meeting deadlines and obligations is simply one more step in preparation for a business career. TCNJ’s Absence Policy:  http://policies.tcnj.edu/policies/viewPolicy.php?docId=9134 

Code of Conduct

Students are responsible for awareness of the Code of Conduct, online at: http://business.pages.tcnj.edu/our-philosophy/code-of-conduct/   

Academic Integrity: Students are responsible to know the Academic Integrity policy. Students may only represent work that is their own. Cheating on tests, failing to cite sources, or submitting someone else’s work are just a few examples that may result in failing the entire course or dismissal from the college. TCNJ’s academic integrity policy is available on the web: http://policies.tcnj.edu/policies/viewPolicy.php?docId=7642.

Final Exam Policy: Students are responsible for being present for all exams as scheduled by the college. TCNJ’s final examination policy is available on the web: http://recreg.pages.tcnj.edu/269-2/

The College of New Jersey Policy Prohibiting Discrimination in the Workplace/Educational Environment governs the college's commitment to and expectations of having an environment that respects the diversity of all members of the campus community.  The link to this policy is: http://policies.tcnj.edu/policies/digest.php?docId=9122. Under this policy, forms of discrimination or harassment based upon specific protected categories are prohibited and will not be tolerated.  If you wish to report a concern, please contact Kerri Thompson Tillett, Chief Diversity Officer, at 771-3139, or via email at thompsok@tcnj.edu.

Help:

If the material you encounter makes no sense (or not enough sense) let me know.  The material we will be dealing with is cumulative so falling behind can mean it will be more difficult than staying current.  There are things you can do which usually do not involve a significant increase in the normal level of study effort.  But to do anything, you have to recognize and identify the problem and then figure out what to do about it.  Let me know if you are encountering difficulties so you and I can figure out what to do about it--different strategies are likly to be useful depending on the particular situation.  We all have blind spots in our memories and voids in our grasp of material; typically, these are not serious problems which a re-statement, different example, completing end of chapter exercises or another text can rectify.  Also, depending on the situation, the tutoring center, a study group or other remediation may be warranted. 

Office hours:

I will be at TCNJ on Mondays, Tuesdays and Thursdays. To arrange a time and place to get together, see me before or after class or contact me at:

* For brief messages only

You can call me at home between 8:30 a.m. and 9:30 p.m. I will be in the Starbucks area in the Library from 10:00 a.m. to 12:00 noon on Thursdays.   To avoid conflicts, check with me in advance to set a specific date and time, although if you see me there alone, no appointment is necessary.  Also, I can arrange to meet you at other times during the week.

If you wish to leave something at the School of Business for me to review or read give it to one of the secretaries or student workers in the School of Business office, BB 114. Do not leave material for me on one of the desks in BB 114.

August 28, 2019

MAIN PAGE                      MACROECONOMICS PAGE