Economy Chapter 11

ECONOMICS 101 -- MACRO PRINCIPLES – Fall 2011

Professor Roger Frantz. Office: Adams Humanities Room 4196; Phone: 594-3718; Hours: MWF 11:00 – 11:45am, and 12:30 – 1:15pm. e-mail: rfrantz@mail.sdsu.edu; Home Page: www-rohan.sdsu.edu/~frantz/index.html.

I. Student Learning Outcomes.
1. Differentiate rational (economic) behavior from non-rational behavior.
2. Define various measures of macro economic output and income
3. Demonstrate how GDP is determined.
4. Elaborate on how government can affect GDP and other macro measures of economic activity.
5. Identify “turning points” in a business cycle and be able to predict the turning points.

II. Readings.
Required Text. Robin Bade and Michael Parkin. Foundations of Macroeconomics. (Pearson, Addison/Wesley).

[Readings in “ ” can be found on the class BB site under “Non-Text Readings.]

Part 1. Introduction.
Chapter 1. Getting Started (including appendix).
Chapter 2. The U.S. and Global Economies.
Chapter 3. The Economic Problem. “Technology Can Put a Bite Into Global Warming.”
Chapter 4. Demand and Supply.
Chapter 18. Demand and Supply in International Trade, Pp. 454 to end of chapter.
Chapter 19. Demand and Supply in International Finance, Pp. 481 to end of chapter.

Part 2 Monitoring the Macroeconomy
Chapter 5. GDP. A Measure of Total Production and Income. “Measuring a Recession With Google.”
Chapter 6. Jobs and Unemployment. "Minimum Wages: Winners and Losers.”
Chapter 7. The CPI and the Cost of Living

Part 3. The Real Economy
Chapter 8. Potential GDP and the Natural Rate of Unemployment
Chapter 9. Economic Growth. “Chinese Economic Growth.” “California Cap and Trade.”

Part 4 The Money Economy
Chapter 11. The Monetary System. “Cocaine on U.S. Dollar Bills.”
Chapter 12. Money, Interest, and Inflation.
Part 5 Economic Fluctuations
Chapter 13. AS-AD and the Business Cycle. “What is a Recession,” “Short History of Great Depression: New York Times.”
Chapter 14. Aggregate Expenditures, Pp 358-364. (Exclude the graphs.)
Chapter 15.

Part 6 Macroeconomic Policy
Chapter 16. Fiscal Policy. “Can Government Stimulate the Economy?”
Chapter 17. Monetary Policy.

III. EXAMS AND GRADES

1. Quizzes: on-line multiple-choice/multiple answer/TF quizzes after each class. The quiz will be on MyEconLab between 11am and noon after class until midnight. The Friday quiz will be on-line until Sunday at 6pm). Each quiz is 5 points.

2. Exams. Four exams -- three midterms and an optional final, approximately every 5 weeks: Friday Sept. 28, Friday Nov. 2, and Wed. Dec. 5. The Final is Wed. Dec. 12 at 8am in the regular classroom. I will drop the lowest of your four scores.

3. Grades. Final grades are based on total points received on the quizzes, and the three highest exam scores, and any other assignments made during the semester. +/- grades will be used.

IV. CONDUCT

SDSU's policy about inappropriate conduct and cheating, and its consequences are contained in the 2012-13 Catalog on pages 477-79 ("Student Conduct"). Also, please, turn off your cell phones before class begins.

V. SUBJECT TO CHANGE WITH NOTICE. Reading assignments, exam dates, types of exam questions, and all other matters pertaining to this class are subject to change with sufficient notice. I have no plans to change anything at this time.