Spring 2006 Professor Black
M2064 301 322-0540
BlackTS@PGCC.edu http://academic.pgcc.edu/~tsblack

Introductory Macro-Economics

Paper Text: Case and Fair, Macroeconomics, 7th Edition, 2004

On-Line Text: Black, Economics Net-TextBook, 4th Edition, 2005

Week of Chapter Topic
Jan 23 2 Scarcity, Choice and, Opportunity Cost
Jan 30 2 Opportunity Cost (continued)
3 Supply and Demand Overview
Feb 6 5 Introduction to the MacroEconomy
Feb 13 6 Measuring Domestic Output and National Income
Feb 20 7 Unemployment and Inflation
Feb 27 8 The Aggregate Expenditures Model
Mar 6 8 The Aggregate Expenditures Model (continued)
Exam I
Mar 13 9 Fiscal Policy
Mar 20 10 Money and Banking
Mar 27 10 How Banks and Thrifts Create Money
Apr 3 11 The Money Market
Apr 10 Spring Break
Apr 17 12 Monetary Policy
Apr 24 13 Aggregate Demand and Supply
Exam II
May 1 14 Labor Markets
15 MacroEconomic Policy
May 9-15 Final Exam



Grading: quizes: 30% - 3 in-class,
10 points each
Attendance policy: used as borderline grading factor
exams: 40% - 2 take-home, over the Net,
20 points each
final examination: 30% in-class
30 points

Students will be expected to understand the concepts and graphical applications. Some algebra will be used. Exams will be objective (multiple choice) and grading is done on the curve. Students will be allowed to create a one-page reference sheet for their use during exams and quizzes.

An optional paper or Netsite (using a topic of the students choice) may be written for a 20% supplement to the final grade. In general, this option is best exercised by students on the margin for the next higher grade. For example, a high "C" combined with the optional paper renders a final grade of "B".

The optional paper should be 10-15 pages in length. An acceptable format includes citation of research references and a bibliography. The best paper uses lots of graphs.

A Netsite may be developed instead of a paper. This option should be viewed as a process by which the student prepares their paper as a Netsite. Several options are available for students to develop economic topics on their own Netsites.

Course Objectives
This course is an introduction to the macro economy. Some basic concepts are introduced to explain prices and the market mechanism. Macro economic variables such as consumption, investment, government expenditure and taxes, national income and gross domestic product are defined and explained. A graphical model of the macro economy is developed to understand how the macro economic variables are related and to explain the impacts of public policy. The impacts of fiscal policy are explained using the model to show the effect of taxes and government expenditure.

Money and banking topics are explored as well. The institutional framework of the banking system is explained to show the roles of the federal reserve bank and the commerical banks. The deposit expansion process is defined to show how the fractional reserve banking system functions. The money markets are illustrated using a graphical model to explain the impacts of monetary policy.

CORE LEARNING OUTCOMES:
Upon successful completion of this course, the student should be able to:

  1. Define the basic economic problem of scarcity faced by all societies;
  2. Identify the three basic economic questions that every society must address;
  3. Use the demand and supply mechanism to determine and graphically illustrate the effect of a change in a determinant of demand or supply on the market equilibrium price and quantity of a particular good;
  4. Identify the phases of the business cycle and the macroeconomic problems associated with each phase;
  5. Analyze unemployment scenarios with regard to a specific type of unemployment;
  6. Differentiate between demand pull and cost inflation;
  7. Calculate the unemployment rate and inflation rate from a given set of data;
  8. Demonstrate an understanding of the macroeconomic model by:
    (a) identifying the forces that move the economy to equilibrium;
    (b) using the Aggregate Demand/Aggregate Supply model or the Aggregate Expenditures model to analyze the effect of a change in aggregate demand or aggregate expenditures;
  9. Solve problems using the multiplier process;
  10. Demonstrate an understanding of fiscal policy by selecting the appropriate measure(s), given a macroeconomic scenario;
  11. Identify the role of banks in creating money
  12. Calculate required and excess reserves, and the maximum amount of deposits that a single bank in a multi-bank system can safely create;
  13. Calculate the deposit multiplier and compute the effect on the money supply of a change in excess reserves;
  14. Identify the impact on excess reserves of a change in one of the three general tools of monetary policy;
  15. Demonstrate an understanding of monetary policy by selecting the appropriate measure(s), given a macroeconomic scenario.
    Department Telephone Number: 301 322-0525

    DISABILITY SUPPORT SERVICES
    Students requesting academic accommodations are required to contact the Disability Support Services Office (M-1042) or call (301) 322-0838 (voice) or (301) 322-0122 (TTY) to establish eligibility for services and accommodations. Students with documented disabilities should discuss the matter privately with their instructors at the beginning of the semester and provide a copy of their Student/Faculty Accommodation Form.

    CODE OF CONDUCT
    The Prince George's Community College Code of Conduct defines the rights and responsibilities of students and establishes a system of procedures for dealing with students charged with violations of the code and other rules and regulations of the college. A student enrolling in the college assumes an obligation to conduct himself/herself in a manner compatible with the college's function as an educational institution. Refer to the 2004-2005 Student Handbook, beginning on page 39, for a complete explanation of the code of conduct, including the Code of Academic Integrity and the procedure for dealing with disruptive student behavior.
    CODE OF ACADEMIC INTEGRITY
    The college is an institution of higher learning that holds academic integrity as its highest principle. In the pursuit of knowledge, the college community expects that all students, faculty, and staff will share responsibility for adhering to the values of honesty and unquestionable integrity. To support a community committed to academic achievement and scholarship, the Code of Academic Integrity advances the principle of honest representation in the work that is produced by students seeking to engage fully in the learning process. The complete text of the Code of Academic Integrity is in the 2004-2005 Student Handbook (pages 41-43) and posted on the college's website.

    CLASS POLICIES
    Students are expected to conduct themselves in a manner fitting for an institution of higher learning. Unnecessary talking or movement is distracting to other students and will be discouraged. Cell-phones must be turned off.
    Prof. Black's Netsite

    page updated 20 Jan 06