Eco 372 Syllabus

|[pic] |Course Design Guide |
| |School of Business |
| |ECO/372 Version 4 |
| |Principles of Macroeconomics |

Copyright © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved.

Course Description

This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events.

Policies

Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents:

University policies: You must be logged into the student website to view this document.
Instructor policies: This document is posted in the Course Materials forum.

University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality.

Course Materials

Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin.

All electronic materials are available on the student website.

|Week One: Fundamentals of Macroeconomics |
| |Details |Due |Points |
|Objectives |Explain the economic interaction of resources among households, government, and business. | | |
| |Describe gross domestic product, inflation rate, unemployment rate, and interest rate. | | |
| |Identify sources of historical economic data and economic forecasts. | | |
|Reading |Read Ch. 1 of Macroeconomics. | | |
|Reading |Read Ch. 2 of Macroeconomics. | | |
|Reading |Read Ch. 6 of Macroeconomics. | | |
|Reading |Read Ch. 7 of Macroeconomics. | | |
|Reading |Read Ch. 8 of Macroeconomics. | | |
|Reading |Read this week’s Electronic Reserve Readings. | | |
|Participation |Participate in class discussion. | |2 |
|Discussion Questions |Respond to weekly discussion questions. | |2 |

|Week Two: Aggregate Demand and Supply Models |
| |Details |Due |Points |
|Objectives | | | |
| |Analyze the impact of various factors on aggregate demand and supply. | | |
| |Evaluate the effectiveness of changes in fiscal policies using Keynesian and Classical models. | | |
|Reading |Read Ch. 10 of Macroeconomics. | | |
|Reading |Read Ch. 12 of Macroeconomics. | | |
|Participation |Participate in class discussion. | |2 |
|Discussion Questions |Respond to weekly discussion questions. | |2 |
|Individual |Resource: Figure 3-1 in Ch. 3 of Macroeconomics. | |10 |
|Fundamentals of | | | |
|Macroeconomics Paper |Part 1 | | |
| | | | |
| |Describe the following terms in your word. | | |
| | | | |
| |Gross domestic product (GDP) | | |
| |Real GDP | | |
| |Nominal GDP | | |
| |Unemployment rate | | |
| |Inflation rate | | |
| |Interest rate | | |
| | | | |
| |Part 2 | | |
| | | | |
| |Consider the following examples of economic activities: | | |
| | | | |
| |Purchasing of groceries | | |
| |Massive layoff of employees | | |
| |Decrease in taxes | | |
| | | | |
| |Describe how each of these activities affects government, households, and businesses. Describe | | |
| |the flow of resources from one entity to another for each activity. | | |
| | | | |
| |Write a 700- to 1,500-word paper summarizing the results. | | |
|Learning Team |Develop a list of resources you might use to gather historical economic data as well as economic| |2 |
|Weekly Reflection - |forecast data. | | |
|Economic Forecasting Paper| | | |
| |Explain how and why each source is valuable and useful. | | |
| | | | |
| |Identify any quantitative or qualitative forecasting factors contained in the sources. | | |
| |Discuss this week’s objectives with your team. Your discussion should include the topics you | | |
| |feel comfortable with, any topics you struggled with, and how the weekly topics relate to | | |
| |application in your field. | | |
| | | | |
| |Write a 350- to 1,050-word paper that details your team's findings. | | |

|Week Three: Monetary Policy |
| |Details |Due |Points |
|Objectives | | | |
| |Assess the factors contributing to the establishment of general and specific rates of | | |
| |interest. | | |
| |Explain the role of the Federal Reserve System in designing and implementing U.S. monetary | | |
| |policies. | | |
| |Analyze how the money multiplier effect facilitates the creation of money. | | |
|Reading |Read Ch. 11 of Macroeconomics. | | |
|Reading |Read Ch. 13 of Macroeconomics. | | |
|Reading |Read Ch. 14 of Macroeconomics. | | |
|Participation |Participate in class discussion. | |2 |
|Discussion Questions |Respond to weekly discussion questions. | |2 |
|Learning Team |For this assignment, you will choose from the following options: | |14 |
|Aggregate Demand and | | | |
|Supply Models |Option 1: Economic Advisement Paper | | |
| |Option 2: Economic Critique | | |
| | | | |
| |Read the instructions in the University of Phoenix Material: Aggregate Demand and Supply | | |
| |Models located on the student website and select one option to complete the assignment. | | |
|Learning Team |Discuss this week’s objectives with your team. Your discussion should include the topics you | |2 |
|Weekly Reflection |feel comfortable with, any topics you struggled with, and how the weekly topics relate to | | |
| |application in your field. | | |
| | | | |
| |Write a 350- to 1,050- word paper detailing the findings of your discussion. | | |

|Week Four: Fiscal Policy – Politics, Deficits, and Debt |
| |Details |Due |Points |
|Objectives | | | |
| |Analyze the influence of deficit, surplus, and debt on the health of the U.S. macroeconomy. | | |
|Reading |Read Ch. 17 of Macroeconomics. | | |
|Reading |Read Ch. 18 of Macroeconomics. | | |
|Participation |Participate in class discussion. | |2 |
|Discussion Questions |Respond to weekly discussion questions. | |2 |
|Individual |Your boss has chosen you to give a presentation to a number of foreign officials regarding the| |10 |
|Federal Reserve |United States Federal Reserve System. These officials are very interested in doing business in| | |
|Presentation |the United States, but they would like to learn more about the Federal Reserve and how it | | |
| |operates. | | |
| | | | |
| |Develop a 10- to 15-slide Microsoft® PowerPoint® presentation. | | |
| | | | |
| | | | |
| |Address the following questions and include a notes page which contains the write-up portion | | |
| |to each question: | | |
| | | | |
| |What are the factors that would influence the Federal Reserve in adjusting the discount rate? | | |
| |How does the discount rate affect the decisions of banks in setting their specific interest | | |
| |rates? | | |
| |How does monetary policy aim to avoid inflation? | | |
| |How does monetary policy control the money supply? | | |
| |How does a stimulus program (through the money multiplier) affect the money supply? | | |
| |Currently, what indictors are evident that there is too much or too little money within the | | |
| |economy? How is monetary policy aiming to adjust this? | | |
|Learning Team |Discuss this week’s objectives with your team. Your discussion should include the topics you | |2 |
|Weekly Reflection |feel comfortable with, any topics you struggled with, and how the weekly topics relate to | | |
| |application in your field. | | |
| | | | |
| |Prepare a 350- to 1,050- word paper detailing the findings of your discussion. | | |

|Week Five: International Trade and Finance |
| |Details |Due |Points |
|Objectives | | | |
| |Analyze the effects of international trade on the U.S. macroeconomy. | | |
| |Explain how foreign exchange rates are determined. | | |
| |Analyze the impact of trade restrictions, tariffs, and quotas on the U.S. macroeconomy. | | |
|Reading |Read Ch. 19 of Macroeconomics. | | |
|Reading |Read Ch. 20 of Macroeconomics. | | |
|Reading |Read Ch. 21 of Macroeconomics. | | |
|Participation |Participate in class discussion. | |2 |
|Discussion Questions |Respond to weekly discussion questions. | |2 |
|Individual |Resources: Macroeconomics | |15 |
|Final Examination | | | |
| |Click the link to the Final Examination on your student website. | | |
| | | | |
| |Complete the Final Examination. You are allowed one attempt to complete the exam, which is | | |
| |timed and must be completed in 3 hours. Results are auto graded and sent to your instructor. | | |
| | | | |
| |Note. Final Examination questions are adapted from Macroeconomics. | | |
|Individual |Assume that you have been appointed as the Speaker of the House. You must deliver a speech | |15 |
|International Trade and |about the current state of the U.S. macroeconomy to a number of amateur reporters who are | | |
|Finance Speech |unfamiliar with economics. | | |
| | | | |
| |Prepare a 750- to 1,050-word speech in simple terms and concepts that focus on international | | |
| |trade and foreign exchange rates. | | |
| | | | |
| |Integrate a summary of your answers to the following questions and cite external research to | | |
| |further justify your facts: | | |
| | | | |
| |What happens when there is a surplus of imports brought into the U.S.? Cite a specific example| | |
| |of a product with an import surplus, and the impact that has on the U.S. businesses and | | |
| |consumers involved. | | |
| | | | |
| |What are the effects of international trade to GDP, domestic markets and university students? | | |
| | | | |
| |How do government choices in regards to tariffs and quotas affect international relations and | | |
| |trade? | | |
| | | | |
| |What are foreign exchange rates? How are they determined? | | |
| | | | |
| |Why doesn’t the U.S. simply restrict all goods coming in from China? Why can’t the U.S. just | | |
| |minimize the amount of imports coming in from all other countries? | | |
|Learning Team |Discuss within your Learning Team how and why the U.S.’s deficit, surplus and debt have an | |10 |
|Fiscal Policy Paper |effect on the following: | | |
| | | | |
| |Tax payers | | |
| |Future Social Security and Medicare users | | |
| |Unemployed individuals | | |
| |University of Phoenix student | | |
| |The United State’s financial reputation on an international level | | |
| |A domestic automotive manufacturing (exporter) | | |
| |An Italian clothing company (importer) | | |
| |GDP | | |
| | | | |
| |Write a 750- to 1,050-word paper summarizing the results. | | |

Optional Discussion Questions

Week One Discussion Questions

Why is economics considered a social science? What role does economics play in your personal and professional lives?

What is the difference between real and nominal GDP? Does GDP accurately reflect the nation’s welfare? Why or why not? How can a country’s GDP be manipulated? In your opinion, is the U.S. GDP being manipulated? Explain your answer.

What are the different types of unemployment? How do they affect the economy in terms of growth, labor force, and price of labor? Cite specific examples to support your response.

Identify economic factors that affect the real GDP, the unemployment rate, the inflation rate, and a key interest rate. How do you predict the economy will perform in the next two years given the current state of two of the economic factors you identified? How might your organization be affected by these changes?

Week Two Discussion Questions

Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why?

Why do Keynesian economists believe market forces do not automatically adjust for unemployment and inflation? What is their solution for stabilizing economic fluctuations? Why do they believe changes in government spending affect the economy differently than changes in income taxes?

In your opinion, which two determinates currently have the greatest impact on aggregate demand and supply? Justify your response with an example.

What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your organization?

Week Three Discussion Questions

What are the uses of money? How do commercial banks and Federal banks create money? Is monetary policy conducted independently in the United States? Explain your answer. Is it important for monetary policy to remain independent from all parties? Why or why not?

What is the difference between contractionary and expansionary monetary policy? What is the intention of each policy under a depression, recession, or robust economy? Which type of monetary policy is more appropriate today and why?

What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net seller of government bonds? What happens to the money supply, interest rates, and the economy if the Federal Reserve is a net buyer of government bonds. Why would the government implement a stimulus program into the economy?

Rank the factors that contribute to the discount interest rate from most important to least important. Justify your rankings.

Week Four Discussion Questions

How does a government budget deficit affect the economy? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?

How does a government budget surplus affect the U.S. economy? Identify two periods in recent history in which the United States has run budget surpluses. What were the reasons for the surpluses during those time periods?

What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country’s long-term debt, what would it be and why?

What are the positive and negative aspects of budget deficits and surpluses? What policy is best for today’s economy? Explain your answer.

Week Five Discussion Questions

Explain how foreign exchange rates are determined. How do changes in interest rates, inflation, productivity, and income affect exchange rates? What are the advantages and disadvantages of a weak versus a strong dollar for imports, exports, international and domestic markets?

Who benefits from a tariff or quota? Who loses? Why would domestic markets benefit from protectionist trade policies? How do protectionist trade policies affect a government’s wealth and fiscal policy?

What is the effect of a trade surplus? What is the effect of a trade deficit? How do trade deficits and surpluses affect the industry in which you work?

Why are trade agreements important for the various countries involved? How is international trade related to the U.S. standard of living as opposed to the standard of living of a small industrial nation or a developing nation? How does international trade affect a country’s standard of living? What impact does it have on the way Americans live life, spend, consume, and so on.?

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