NORTHEASTERN STATE UNIVERSITY

COLLEGE OF BUSINESS AND INDUSTRY

DEPARTMENT OF BUSINESS ADMINISTRATION

Tahlequah, OK

 

 

 

INSTRUCTOR:

 

Instructor:  Dr. Wier, Assistant Professor

Office:  PA  300D

Office Hours:  Posted

Telephone and voicemail:  456-5511 ext. 2916

Home Number:  431-0754 (use between 9:00 AM and 9:00 PM)

Fax:  458-2337

E-mail:  wier@cherokee.nsuok.edu

 

COURSE TITLE AND NUMBER:

 

ECONOMICS 2213:  Principles of Macroeconomics

 

PREREQUISITES:  NONE

 

CATALOG DESCRIPTION AND COURSE PURPOSE:

 

An introduction to modern macroeconomics.  Topics considered include the causes of inflation and recession, national income accounts, employment levels, business ethics, banking and monetary theory, international commerce, economic development, and governmental tax and fiscal policy.

 

REQUIRED TEXT:

 

McConnell, Campbell and Brue, Stanley, ECONOMICS:  Principles, Problems, and Policies, 15th. Ed., McGraw-Hill, Inc., 2001.

 

EXPECTED COURSE OUTCOMES:

 

OBJECTIVE I:

A. Introduction and Methodology

 

1.  (Ch. 1)Draw, label, and explain  a figure which shows the methodology of economics as practiced today and a figure of the methodology which should be used to describe any social science.

2.  (Ch. 2)Draw, label, and explain a figure that shows the natures of and relationships between 

            the four basic systems of political economy.

3. Draw, label, and explain the four circular flow diagrams for each system of Political

            Economy.

 

B. Market Capitalism

1.      List and describe the basic tenets of Capitalism.

2.      Relate this information to the appropriate quadrant of the Systems of Political Economy figure.

 

C. Perfect Markets

1.      Describe the psychology of demand and supply and list their determinants.

2.   Describe the process of market equilibrium using the social contracting framework.

 

D. The Mixed Economy

1.      List the legal forms of business along with a discussion of their advantages and disadvantages.

2.      List and discuss the major economic functions of government.

3.      What is an externality/spillover and how are public goods related to this concept?

4.      How is government activity financed?

 

E. The Global Economy

1.      How is the concept of specialization applied in the theory of comparative advantage?

2.      How does this relate to the terms of trade concept?

3.      What are some potential problems with the simplistic application of this theory?

 

OBJECTIVE II

A. National Income Accounting

corporate income tax                                                    215

proprietor's income                                                       250

government purchases                                                   300

profits                                                                           150

wages                                                                           700

net exports                                                                   275

rents                                                                             25

personal taxes                                                               105

consumption of fixed capital (Depreciation)                   25

personal consumption expenditures                               700

indirect business taxes                                                   60

undistributed corporate profits                           50

gross private domestic Investment                                 500

net foreign factor income                                               4

interest                                                                         60

social security contributions                                           20

transfer payments                                                          20

 

Calculate GDP, GNP, NDP, NNP, National Income, Personal Income, and Disposable income.

 

B. Draw, label, and explain a graph of the business cycle.

 

C. List, define, and describe the types of unemployment and how, if at all, they relate to

      the business cycle.

 

D. List, define, and describe the types of inflation and how, if at all, they relate to the  

      business cycle.

 

E. Use the graph below to show  the equilibrium GDP support by current spending.  Then use the multiplier formula (M=1/1-MPC or M=1/MPS) and the output/expenditures formula (the change in GDP = M * the change in Aggregate Expenditures, where the change in AE would be any change in Consumption, Investment, Government spending, or Net Exports) with the data and graph provided below to estimate the change of GDP.

 

MPC is .8 and there is an increase in government spending of 50 billion dollars.

 

 

 


                                    AE*                                                45°

                                                                                                (C+I+G+NX)

                                    800                                                     

 

                                    700

 

                                    600

                                   

                                    500     

                                               

                                              500   600   700   800   900        GDP*

(*AE and GDP are in billions)

 

F. Answer key questions 9 and 12 at the end of chapter 11.

 

OBJECTIVE III

A.     What phenomena and two major problems are the focus of macroeconomic policy?

 

B.     What are the two types of macroeconomic policy?

 

C.     What is discretionary fiscal policy and how is it used to impact the macroeconomic problems (expansionary vs. contractionary fiscal policy).

 

D.     What are automatic stabilizers and how are they different from discretionary tools?

 

E.      How efficient is fiscal policy in solving macroeconomic problems?

 

F.      What is money?

 

G.     What are the functions of money and the liquidity definitions of the Fed (m1, m2, etc.).

 

H.     Describe in detail the Federal Reserve and all its component parts.

 

I.        Describe the process of money creation and use the money multiplier to demonstrate how much new money is created.

 

J.       What is monetary policy and how are the tools of monetary policy used to impact the macroeconomic problems (easy and tight money policy).

 

 

 

INSTRUCTIONAL PROCEDURES:

 

CHAPTER TITLE AND TOPIC

Course introduction (i.e. “How not to flunk Dr. Wier’s class”)

Ch. 1 Methodology of Economics

Ch. 2 Defining Economics and The Economizing Problem?

Ch. 2 Economizing Systems and Ideology (4 systems)

Ch. 2 Four Economic Systems (4 circular flows)

Ch. 4 The Ideology of Pure Capitalism and The Market System

Ch. 3 Introduction to Pure Competition and Classical                                      Macroeconomics

Ch. 3 Supply and Demand: Demand & Supply

Ch. 3 The Assumptions, Nature, and Impact of Classical                                  Macroeconomics (Who needs macroeconomics?)

Ch. 5The Mixed Economy

Ch. 6 The United States in the Global Economy

Exam I

Ch. 7 Measuring Domestic Output, National Income, and The Price                 Level

Ch. 8 Macroeconomic Instability: Unemployment and Inflation

Ch. 9 Introduction to Keynesian Economics: Keynes vs. Classicals

Ch. 9 Building the Aggregate Expenditures Model

Ch. 10 Aggregate Expenditures: The Multiplier, Net Exports, and                    Government

Ch. 11 Aggregate Demand and Aggregate Supply

EXAM II

Ch. 12 Fiscal Policy

Ch. 13 Money and Banking

Ch. 14 How Banks Create Money

Ch. 15 The Federal Reserve Banks and Monetary Policy

EXAM III (Final)

 

 

STUDENT PERFORMANCE ACTIVITIES:

 

ATTENDANCE: Attendance at lectures is required for the full benefit of this course to be attained.  Special announcements regarding assignments and dates that are made during lectures will carry the full force of assignments and instructions contained in this syllabus.

 

READING:  It will be key to your success in this class to be conscientious in your reading as most of the material in the lectures will be taken primarily from the text. Economics is a difficult subject and thus, each topic requires multiple exposure.  If the material is covered once in reading and subsequently in class then the main ideas will be developed and understood.  If not, the experience of economic thought will be a frustrating and fruitless one.

 

EXAMS:  There will be four exams (three during the term, one during finals) each counting 20 percent of the final grade.  Each will cover a distinct  part of the material and none will be comprehensive.  This will allow for tough but fair exams which foster in-depth study into the subject at hand throughout the semester.  If an exam  must be missed the instructor must be notified prior to the exam (directly or by message at extension 3177)  If an emergency occurs (within the guidelines specified by the  University), then instructor notification must occur before the next class period.  NO EXCEPTIONS WILL BE MADE.

 

STUDENT EVALUATION:

 

FINAL GRADE:  The final grade in this class will be calculated as below:

 

Quizzes                          25%                          

Exam I                           25%

Exam II                         25%

Exam III (Final)              25%

Total                            100%

 

 

ADA COMPLIANCE:

 

If any member of the class feels that he/she has a disability and needs special accommodations of any nature whatsoever, the instructor will work with you and the University's Office of Student Affairs to provide reasonable accommodations to ensure that you have a fair opportunity to perform in this class.  Please advise the instructor of such disability and the desired accommodations at the first class attended.

 

INCLEMENT WEATHER / DISASTER POLICY:

 

            The following are basic premises for the inclement weather policy at Northeastern State University:

 

            1.         Classes are expected to be held if at all possible.

            2.         It is the student's responsibility to receive the information when weather is questionable.

            3.         Neither students nor faculty are expected to risk life or limb.

            4.         Faculty members are obligated to hold classes if the University is not closed, unless the faculty member is unable to get to campus.

 

   Policy:         During times of inclement weather, decisions concerning day classes will be made by 6:00 a.m. in order for the media to be notified and for students to receive the announcement before they leave home. Decisions concerning night classes will be made by 3:00 p.m.

 

                        The following media will be notified regarding closing of the campus:

 

                        Radio Stations:                                              Television Stations:

 

                        KRMG 740 AM          Tulsa                            KJRH Channel 2          Tulsa

                        KAYI 107 FM Tulsa                                        KOTV Channel 6         Tulsa

                        KTLQ 1350 AM         Tahlequah                     KTUL Channel 8          Tulsa

                        KEOK 102 FM           Tahlequah                     KFSM Channel 5         Fort

                                                                                                                                    Smith

                        KBIX 1490 AM          Muskogee                    Cable Channel 96Tahlequah

                        KMMY 97 FM            Muskogee

                        KVOO 1170 AM        Tulsa

 

The automated attendant message on 918-456-5511 will be modified to include information concerning campus operations during inclement weather.