State California University, Bakersfield Essentials of Macroeconomics (AECO 202)
Abbas Grammy, Ph.D., CU-Boulder Department of Applied Economics Office: BDC Room 232 E-mail: [e-mail] Telephone: [phone] Professor of Economics School of Business and Public Administration Hours: TR 10:30-12:00 p.m. & by appointment Website: www.csub.edu/~agrammy Fax: [phone]
Course Description: This course is a study of theories of income, employment, inflation, and money. Emphasis will be placed on macroeconomic theory and policy and analysis of macroeconomic data for decision-making. Course objectives are: To learn the principle concepts and theories of macroeconomics To analyze macroeconomic trends and apply them to societal conditions To be informed of historical and current economic events
These objectives are achieved by classroom lectures and discussions, data analysis projects, historical and current events, homework assignments and examinations. Course Materials: Karl Case and Ray Fair, Principles of Macroeconomics, 8th edition, New Jersey: Pearson Prentice Hall, 2007. ISBN: 0-13-229144-4. Thomas Beveridge for Karl Case and Ray Fair, Study Guide for Principles of Macroeconomics 8th edition, New Jersey: Pearson Prentice Hall, 2007. ISBN: 0-13-229141-X. My lecture notes are available on my website under Course Materials. Please download and print as "handout" three to a page for note-taking and discussion purposes. Course Policy: Attendance: You are required to attend all class sessions and actively participate in class discussions. You are also required to come to the class on time and stay for the entire period. I will end the class on time and give you a brief break. If you must leave the class to attend a prior engagement before the session is over, you need to let me know in advance. Grading System: Letter grades will be determined by total percentage points earned in the course. I do not intend to grade on the curve. I will use the following distribution corresponding to each letter grade: 95-100 A 90-94 A87-89 B+ 84-86 B 80-83 B77-79 C+ 74-76 C 70-73 C65-69 D+ 60-64 D 50-59 D0-50 F
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Assignment Policy: There will be no make-up exams, quizzes, or assignments. Only serious and compelling medical reasons with supporting certifications from credible sources will be considered. Exams, quizzes, and assignments cannot be made up for other reasons. Assignments must be hand-delivered to me in the classroom on their respective due dates. Other forms of submission such as sliding under my office door or via e-mail are not acceptable. Late assignments will not be graded. Late arrival to exam or quiz sessions will not receive extra time. If you happen to miss any exams, quizzes, or assignments, your grade will be based on the requirements you have completed. Incomplete grades will not be assigned. Cheating & Plagiarism: I follow the university's policy on Academic Honesty enumerated in the CSUB Catalog. In particular, seemingly identical examinations and assignments will be subject to this policy. Please read the policy carefully. Course Requirements: Exams and Exercises: Mid-term Examination Final Examination Homework Assignments Historical Perspectives & Current Events: Economics USA Research Projects News Journal
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Explanation of Course Requirements: Examinations: There are two exams in this course. Each examination will consist of a combination of problem sets and multiple choice questions. The mid-term exam will cover Chapters 3-9 and the final exam will cover Chapters 10-17. Most multiple-choice questions are taken from the Study Guide. Homework Assignments: There are several homework assignments consisting of problem sets. Late assignments will not receive credit. News Journal: For Tuesday class session, you write a short essay (1/2 page typed doublespaced) and bring two copies: one for me and the other for yourself. In this essay, you summarize an important current economic event. This event could relate to the local, regional, national, or international economy. As you enter the classroom, give me my copy and be ready to share your news with the class. I will randomly select a number of students to share their economic news. You get credit for both written and oral presentations. News sources you use could include websites (e.g., CBS Market Watch), TV news programs (e.g., MSNBC), and print media (The Wall Street Journal).
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Economics USA Quizzes: On Thursday class session, you view a videotaped presentation from the Economics USA series and take a quiz while viewing a film. Each presentation is a study of macroeconomic policy with historical applications from the United States. Research Project: You'll track data of gasoline prices, and rates of unemployment, inflation, and economic growth. You are required to complete 3 of the 4 writing assignments and have the option of doing 1 assignment for extra credit. You will analyze their trends, and apply their changes to general and personal economic conditions. Papers are graded on length, data accuracy, graphical illustrations, writing and mechanics and organization. To complete each assignment, follow the steps below: Process: 1. Visit www.economagic.com to identify the dataset you need 2. Transform the data into an appropriate format and make a chart 3. Record and tabulate the data 4. Insert (copy and paste) your chart an appropriate location within the text and place your data table on the last page of your paper 5. Write a 3 to 4 page paper (typed double-spaced and edited for spelling and grammar, excluding the data charts and tables) to analyze the data trends and to answer questions Organization of the Paper: 1. Introduction and Purpose 2. Data Source and Collection 3. Data Analysis and Illustration 4. General Question 5. Personal Question Description of the Projects: Price of Gasoline Data: Regular Reformulated Area Retail Gasoline Price in California Process: Transform weekly data into monthly averages and quarterly averages. Now record the data from the first quarter of 2000 to the fourth quarter of 2006 Analysis: Analyze the trend of gasoline prices for this period General Question: How do falling and rising gasoline prices affect production cost and profitability of business? Question: How do falling and rising gasoline price affect your monthly expense budget? Unemployment Rate Data: Unemployment Rate Process: Transform monthly data into quarterly averages. Record quarterly data on the rate of unemployment from the first quarter of 2000 to the fourth quarter of 2006 Analysis: Analyze the trend of unemployment rate during this period. Find the average unemployment rate for this period and compare it with the "natural" unemployment rate of 5%. General Question: Why is it critical for the economy to create jobs for its growing labor force?
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Personal Question: How does a rise in the unemployment rate affect your chances of finding a job that would match your qualifications as a college graduate? Inflation Rate Data: Consumer Price Index; All Urban Consumers; SA (i.e., seasonally adjusted) Process: Transform monthly data into quarterly averages. Transform quarterly averages into percentage change quarter-to-quarter. Record quarterly data on CPI and its inflation rate from the first quarter of 2000 to the fourth quarter of 2006 Analysis: Analyze the trend of CPI and its inflation rate during this period. Find the average inflation rate for this period and compare it with the "expected" inflation rate of 3%. General Question: Why is it critical for the economy to keep inflation rate low? Personal Question: How does a rise in the inflation rate affect your wages and salaries? Economic Growth Data: Real Gross Domestic Product in Chained 1996 (which is actually 2000) Dollars Process: Transform quarterly averages into percentage change quarter-to-quarter. Record quarterly data on Real GDP and its growth rate from the first quarter of 2000 to the fourth quarter of 2006 Analysis: Analyze the trend of the Real GDP and its growth rate during this period. Find the average growth rate for this period and compare it with t...