ECONOMICS
101
Principles of
Macroeconomics
Office: 201 College Hall
Telephone: 895-4208 (voice mail)
e-mail: tknoop@cornellcollege.edu
Homepage: http://people.cornellcollege.edu/tknoop/
Class Times: 9:15-11:30 Monday--Friday
1:00-2:15 Monday--Thursday
Office
Hours: 11:30-12:00
Monday--Friday (except first two
Tuesdays of block)
Additional
hours as needed or by appointment
Texts: N. Gregory Mankiw, Principles
of Macroeconomics, fourth edition
Quantitative
Reasoning Jessica Johanningmeier
Consultant: 125
Library
895-
4222 or JJohanningmeier@cornellcollege.edu
Web
page: http://cornellcollege.edu/library/qrs
Introduction:
Macroeconomics is the study of economies as a
whole. In this class we will attempt to
answer five primary questions:
(1)
What are the sources of growth and why do
some countries grow faster than others?
(2) What
creates inflation and is it possible to maintain stable prices?
(3) What
are the causes of unemployment, recessions, and macroeconomic volatility?
(4) Is there anything the public or the government
can do to eliminate recessions and maintain full employment of the work force?
(5) Is
international trade beneficial and what are its economic implications?
In Macroeconomics, we will focus on the economic
terms you are most likely to hear about on the evening news: interest rates,
output, inflation, the Federal Reserve, exchange rates, and unemployment to
name a few. It is because of this
applicability to the real world that many of you will find Macroeconomics very
interesting. It is also why an active
interest in the world around you will help you understand classroom
material. In fact, my goal for you in this
class is simply to be able to understand the economic articles you read in the
newspaper or the news you see on TV. It
is for this reason that you will be well served by paying attention to current
events and participating in our frequent class discussions on recent economic
happenings.
Economists are often portrayed as bickering and
indecisive, probably for good reason. Economists are not in total agreement on
the answers to many important questions relating to Macroeconomics. Unfortunately, one of the most difficult
aspects of Macroeconomics is this lack of universal truth. It is because of this that the emphasis in
this class will not be on always obtaining the “correct” answer to a question
(if there is one) but on addressing questions in a systematic manner. This approach differs from that used in many
other topics of study and is a reason why many students often struggle in
economics. As a result, it is very
important for you to attend class and keep current on all material. Reading the book is a poor substitute for
class attendance.
Remember: “The theory of
economics does not furnish a body of settled conclusions immediately applicable
to policy. It is a method rather than a
doctrine, an apparatus of the mind, a technique of thinking, which helps its
possessor to draw correct conclusions.”
--
John Maynard Keynes
Class
Format: I plan
on using class time in the following way.
The morning sessions will consist of lecturing from our main textbook,
Mankiw. The afternoon sessions will
primarily be used for three purposes.
First, quizzes and exams will be given and reviewed during this
time. Second, class discussions will be
conducted on any assigned readings outside of the textbook. Third, in-class problems sets will be worked
on in an effort to review important concepts from the lectures.
Grading: Course grades will be determined by four
classes of assignments and will be based on 500 possible points. I reserve the right to use my discretion at
the margin and things such as class participation will be considered in
borderline cases.
(1) Exams:
Two midterm exams and a selectively comprehensive
final exam will be given. Each midterm
will be worth 100 points and the final will be worth 130 points. If a make-up exam is needed, a time must be
arranged in advance of the test date.
(2) Quizzes: Five quizzes will
be given periodically throughout the term.
Each quiz will be worth 20 points.
The purpose of these quizzes is to give you an opportunity to identify
your areas of weakness before an exam and also to ensure that you do not fall
behind in class preparation. The total
points from quizzes will be 100 points.
(3) Paper: Each student will be required to write one
short paper on a published newspaper or magazine article of your choice. This paper should be related to a topic of
current MACROECONOMIC interest and
also should have some relationship to class material. Included in this paper should be a brief
review of the article, an explanation of the author’s point of view, and a
critical analysis of the article. This
paper should be 2-4 pages long, excluding graphs, and will be worth 40 points.
(4) Class Participation: Class participation
will count for 30 points toward the final grade and will be assigned on the
basis of both quantity and quality of participation. Topics that are important
enough to find their way onto exams will definitely be reviewed extensively in
class. If you miss a class it is your
responsibility to find out what announcements and other materials or
assignments were presented in class.
Academic Honesty:
Academic
dishonesty will not be tolerated and will be dealt with in accordance with
Cornell’s student regulations.
Learning
Disabilities:
OUTLINE OF TOPICS AND
(tentative)
Also,
additional articles and topical readings will be assigned throughout the
semester.
Section 1: Introduction and the Data of
Macroeconomics
Monday
#1: Supply
and Demand Chapter
4
Tuesday
#1: Comparative
Advantage Chap. 3, pg. 52-58
Quiz
#1
Wednesday
#1: Measuring
Output Chapter 10
Thursday
#1: Measuring
Inflation Chapter
11
Quiz #2
Section 2: Growth and Long-Run
Macroeconomics
Friday
#1: Production
and Growth Chapter 12
Monday
#2: Production
and Growth, cont. Handouts
Income Distribution
Tuesday
#2: The
Financial System Chapter 13
Exam #1
Section 3: Money and Inflation
Wednesday
#2: LR Unemployment Chapter 15
Thursday
#2: The
Monetary System Chapter 16
Quiz #3
Friday
#2: Inflation Chapter 17
Section 4: Business Cycles and Short-Run
Macroeconomics
Monday
#3: Aggregate
Demand and Supply Chapter 20
Tuesday
#3: AD
and AS, cont.
Quiz #4
Wednesday
#3: Monetary
and Fiscal Policy Chapter 21
Thursday
#3: The Debate
Over Stabilization Policy Parts
of Chapter 22
Exam #2
Friday
#3: Stabilization
Policy, cont. Handouts
Monday
#4: Open
Economy Macro Chapter
18
Short Paper Due
Quiz
#5
Tuesday
#4: Open-Economy
Macro, cont. Chapter 23
Conclusions
Wednesday
#4: Comprehensive Final Exam