principles of economics - colorado.edu 2020-100 sp 95… · quizzer a software tutorial containing...

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Principles of Economics:

Teaching Assistants

Kathleen Green

Shawn Hanna

James Lynch

Bill Mertens

Paul Young

MACRO

ECON-2020 Section 100 Chem 140 TR 1230 Spring 1995

Instructor: Ralph T. Byrns Adjoint/Adjunct Professor of Economics

Department of Economics University of Colorado, Boulder 80309-0256

Internet e-mail: [email protected] Office: Econ 109 Phone: 492-79~

Hours: TR 11 :00 or by appointment Emergencies: Home: 779-0907

Office Phone(s) Office Hours

Principles of Macroeconomics

This course explores such crucial concepts as: Market systems and their alternatives, supply and demand, how national income is measured and determined, unemployment and inflation, demandside and supply-side aspects of both fiscal and monetary policies, federal debt, and international trade and finance. A key feature is analysis of such real world problems as the proposed "BalancedBudget" amendment, sluggish economic growth, and massive international debt.

Required

Textbooks and Materials

Ralph T. Byrns and Gerald W. Stone, Macroeconomics Sixth Edition (A complete package that includes the text, a Student Guide for Learning Macroeconomics, Homework Sets, and MacroStudy. (This computer software is available for Windows, Macintosh, and DOS platforms). New York: HarperCollins, 1995.

Strongly recommended: A subscription to The Wall Street Journal.

Study Suggestions: "To the Student" in the Preface of the text provides study hints that you should consider before working on other materials.

GRADES: Based on performance on 12 quizzes, two major exams, a comprehensive final, and your recitation. Cheaters receive automatic Fs, and other measures may be taken. Top scores on all exams receive maximum potential points; other grades are adjusted accordingly.

Grade Scale Potential Points

A = 906+ 12 weekly quizzes (25 ea.) 300 A- = 895-905 2 major exams (150 ea.) 300 B+ = 885-894 Comprehensive final exam 350 B = 806-884 Recitations I Software 50 B- = 795-805 C+ = 785-794 TOTAL 1000 c = 706-784 C- = 695-705 D = 600-694 F = 599 or less

Examinations: Lectures may not repeat reading assignments. All lectures and assignments are fair game for scheduled quizzes and exams. Quizzes = 12 multiple choice questions, major exams = 50 questions, and the comprehensive final = 100 questions.

Exemption from the Two Mid-Term Exams: Students cumulatively scoring in the top 5% on the four quizzes given during each of the first two five-week modules are exempt from that major exam, with automatic grades of 150 points. The comprehensive final exam is mandatory:

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ATTENDANCE AND MAKE-UPS

Satisfactory performance is typical if you conscientiously: (1) Attend classes and recitations, (2) Follow the hints in "To the Student," and (3) Work through the Homework, Study Guide and all software. Acquire copies of notes from other students if you miss class. Missed exams/quizzes will be made-up ONLY through added weight on the comprehensive final exam.

**** NO OTHER MAKE-UPS WILL BE GIVEN****

SOFTWARE AND HOMEWORK PROBLEMS

Macro-Tutor Computerized graphical tutorials containing 20 questions per chapter. Macrosim A simulation allowing manipulation of monetary and fiscal policy tools. Quizzer A software tutorial containing practice quizzes.

Turn in any homework/software print-outs at your recitation when due. A randomly selected subset may be graded and count for up to 50 points from your recitation. Due dates for assigned problems are indicated in the course outline. Your TA can help you locate a computer. If you are uncomfortable with computers, have a TA or friend help get you started, but do your own work. If you are computer literate, just boot a computer, follow standard installation, and start working.

Optional Assignments

Six optional Macrosim assignments may each add as much as. 15 points to your point total. Assignments not in accord with all directions receive ZERO credit. Students receiving maximum points on all six are awarded a 10 point bonus. Thus, unless your cumulative score from tests is below 500 or above 905, maximum optional points will raise your final grade.

Format and Due Dates Your objective in each scenario is to optimize the function specified below. Usually, this entails maximizing real economic growth while minimizing unemployment and inflation. Some scenarios also require controlling such things as run-away budget deficits.

Optional Scenario Objective Where

#1 Stable MAX(v+p+u) y= [(Y8 - Y0)*100]/YO #2 Recession MAX(v+p+u) p = [(P0 - P8)*100]/PO #3 Inflation MAX(v+p+u) u = [(U0 - U8)*100]/UO #4 Depression MAX(v+p+u) d= [(D0 - D8)*100]/DO #5 Deficit MAX(v+p+u+d) (Y = real GDP, P = inflation rate, #6 Stagflation MAX(v+p+u) U = unemp. rate, D = fed. deficit)

Thus,y =%growth in REAL GDP (over 8 years),p =%reduction in inflation, u =%decline in unemployment, and d = % decline in the deficit. These formulae reward GDP growth and cuts in unemployment, inflation and/or the deficit (as reported by Macrosim at the end of period 8).

Hand in print-outs after round 8 of each Macrosim scenario, with a~ cover sheet identifying (a) your name/student#, (b) hour your recitation meets, (c) your TA's name, and (d) the scenario, with a score calculated according to the formula above. Show all calculations. Assignments must be turned in during weeks 11-13 as specified. Late optional assignments, calculation errors, or failure to follow directions will yield ZERO extra credit.

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OUTLINE AND SCHEDULE

WEEK DATES

1 Jan 9 - Jan 13

TOPICS

ORIENTATION and COURSE REQUIREMENTS INTRODUCTION TO ECONOMICS GRAPHICAL TECHNIQUES IN ECONOMICS

Assignment: Text and SG: Chapter 1 HW Set Two: GraphsSoftware: MacroStudy Modules O and 1 of

Graph-Tutor and Quizzer HW Set One: One - 1

2 Jan 16-Jan20

Assignment: HW: One-2

3 Jan 23 - Jan 27

Assignment: HW: One - 3

4 Jan 30 - Feb 3

Assignment: HW: Two-3

5 Feb 6 - Feb 10


COMPARATIVE ADV ANT AGE AND TRADE PRODUCTION POSSIBILITIES FRONTIERS ALTERNATIVE ECONOMIC SYSTEMS INTRODUCTION TO DEMAND & SUPPLY ANALYSIS

Text and SG: Ch. 2 & start, Ch. 3 Software: MacroStudy, Modules 2 and 3

DEMAND & SUPPLY ANALYSIS (cont.) PRICES AND MARKETS

Text and SG: Ch. 3 & 4 Software: MacroStudy, Modules 3 and 4

AN OVERVIEW OF MACROECONOMICS AGGREGATE DEMANDS AND SUPPLIES AMERICAN BUSINESS CYCLES

Text and SG: Chapter 5 Software MacroStudy, Module 5

UNEMPLOYMENT AND INFLATION

Text and SG: Software

Chapters 6 and 7 MacroStudy, Modules 6 and 7

Suggestion: Become familiar with Macrosim by practicing with the "Stable" scenario if you are considering doing the optional (extra credit) assignments.

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6 Feb 13 -Feb 17

Assignment:

Feb 16

7 Feb 20 - Feb 24


8 Feb 27 - Mar 3


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MEASURING GROSS DOMESTIC PRODUCT

Text and SG: Chapter 8 Software: MacroStudy, Module 8

*** FIRST MAJOR EXAM ***

CLASSICAL MACROECONOMIC THEORY SOURCES OF AGGREGATE SPENDING

Text and SG: Chapter 9 Software: MacroStudy Module 9

MACROECONOMIC EQUILIBRIUM

Text and SG: Chapter 10 Software: MacroStudy Module 10

Chapters 1-7

Suggestion: If you plan to do the optional (extra credit) assignments (1) Become more familiar by doing more Macrosim exercises; (2) Experiment extensively with Macrosim.

9 Mar 6 - Mar 10


10 Mar 13 - Mar 1 7

Assignment:

11 Mar 20 - Mar 24


One-8

Mar23

GOVERNMENT SPENDING AND TAXATION

Text and SG: Software: Supplementary:

MONEY


Chapter 11 MacroStudy Module 11 Macrosim - Scenario 2

Chapter 12 MacroStudy Module 12 Macrosim - Scenario 3

THE FEDERAL RESERVE SYSTEM MONETARY THEORY AND POLICY


Chapters 13 and 14 MacroStudy Modules 13 and 14 Macrosim - Scenario 4

*** SECOND MAJOR EXAM *** Chapters 7-11

Mar 27-Mar31 ***** SPRING BREAK *****

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12 Apr 3 - Apr 7

Assignment

April6

13 Apr 9 - Apr 13

Assignment: HW-9

April12

14 Apr 16 - Apr 20

Assignment: HW: One- 10

15/17 Apr 23 - May 1

16/17 May 4-10

DEFICITS AND DEBT MICROFOUNDATIONS OF MACROECONOMICS


Chapters 15 & 16 MacroStudy Modules 15 and 16 Macrosim - Scenarios 4 and 5

OPTIONALS #1 - #3 DUE

MODERN MACRO THEORY AND STAGFLATION LIMITATIONS OF STABILIZATION POLICY


Chapters 1 7 and 18 MacroStudy Modules 1 7-18 Macrosim - Scenario 6

OPTIONALS #4 - #6 DUE

INTERNATIONAL TRADE AND FINANCE

Text and SG: Chapters 20 and 21 Software: MacroStudy Modules 20 and 21

CATCHUP Review Sessions

Comorehensive Final .. May 8 7:30AM-10:30AM

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principles of economics - colorado.edu 2020-100 sp 95… · quizzer a software tutorial containing...

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