EC 101 - Principles of Macroeconomics First Summer 2000, Ansari Business (AB) Bldg. 110	Professor Elliott Parker Office: AB 319-F
Sec. F01, MTWR 10:10 a.m. - 12:10 p.m.	Office Hours:  MTWR 1:15 - 2:15 p.m. or email me for an appointment

Lecture Notes on International Trade and Finance

  Books  |  Grading  |  Homework  |  Schedule  |  E-Mail List  |  Links

(Short Syllabus)

Course Description

This is an introductory course in macroeconomics, a field which uses tested theories and testable hypotheses to explain and predict the behavior of aggregate markets.  In contrast to microeconomics, which focuses on the behavior of the consumer, the firm, and specific markets, macroeconomics focuses on recessions and expansions in the national economy, unemployment, inflation, money creation and the role of banks, interest rates, aggregate investment, and growth.  Macroeconomics further attempts to predict the economic effects of government policies, particularly fiscal and monetary policies intended to affect the national economy.

Discussion of examples and policies will focus on the U.S. economy.  No previous economic study is required, but a reasonable degree of comfort with algebra and geometry will be extremely helpful.  This course is required for any student wishing to major in economics or business; it also meets the social science requirements of the core curriculum, since you will be exposed to major questions concerning human and institutional behavior, and you will be encouraged to develop your skills in critical analysis, mathematics, and writing clarity.  Class discussion is encouraged.

I plan to challenge you in this course.  There are different approaches to teaching; some like to spoon-feed their students bite-sized portions which are easily digestible, but I believe in setting goals that you can only reach on tiptoe.  I do this because I believe that you will learn more if you are pushed, and because I believe that you should be aware of how much there is to learn.  I fully believe that, if you pay attention, what you learn in this class will help you make more sense of business, politics, and world affairs in the future.  (See the Velco Theory of Learning)

Books

The textbook is Principles of Macroeconomics, Second Edition (1997), by Joseph E. Stiglitz, ISBN 0-393-96838-3.  Dr. Stiglitz was a professor at Yale, Princeton, Oxford, and Stanford, received the John Bates Clark Award (which many economists consider to be a greater honor than the Nobel Prize), served as the chairman of the President's Council of Economic Advisors, and is now the chief economist at the World Bank.  The last time I priced it, this required paperback was available at the ASUN Bookstore for $60 new (or $45 used).  It was also $63.90 at Amazon.com, $55.27 (or $47.93 used) at Bigwords.com (plus a 5% discount since I created a course list), or $54.32 at Varsity Books. The Study Guide for Stiglitz, by Lawrence W. Martin, ISBN 0-393-96841-3, is optional but highly recommended by past students.  It was $20 at the Bookstore, $18.59 (or $14.06 used) at Bigwords.com, or $17.70 at ecampus.com.

There are a number of self-help books (e.g., Cliff Notes) on economics that you might find useful; one that I think gives particularly good study advice, along with practice exams, is Alan Axelrod's Ace Your Midterms & Finals:  Principles of Economics.  It is available (along with other similar books) in the ASUN Bookstore, and at Amazon.com for $13.56.

W.W. Norton, Inc., has a great website for the Stiglitz text, but for the full site you will need a password that is given in the Study Guide.

Students are expected to regularly read a business publication such as the Wall Street Journal, Business Week, the Economist, Barrons, or Forbes to familiarize themselves with the business uses of macroeconomic statistics and predictions.   Online versions are available for the New York Times, the Economist, the Financial Times, and Business Week, among others.

Grading

Grading Scale  |  Exams  |  Homework  |  Math Competency Quiz
 Attendance & Participation  |  GUESS  |  Tutoring  | Hints for Success

Grading Scale:

Grading will be done according to a four point scale (4=A, 3=B, 2=C, 1=D, and 0=F).  At the end of the semester, your average will be converted back into a letter grade, based on the following ranges:

There will be three one-hour midterm exams plus a two-hour comprehensive final exam.  Midterms will be worth 20% each, and the final will be worth 40%.  Exams will use both multiple-choice and written problems.  You will probably find them very difficult.  Because they are difficult, exams will not be graded on the standard 60-70-80-90 scale, but will be graded on an experience-adjusted curve.  Midterm exam grades can be adjusted upwards if your homework averages are higher.  Your final grade can be adjusted upwards or downwards based on the math competency quiz, your guess, attendance and participation.

There will be no make-ups without prior approval except under extremely unusual circumstances, and missing an exam will result in a grade of -1 for that exam. By the way, any cheating will be severely punished.

Sample exams from Spring 1998:

Sample first exam (chapters 1-7)
Sample second exam (chapters 8-13)
Sample third midterm exam (chapters 14-18)
Sample Comprehensive final exam (chapters 1-21)

Test Smart!

Optional homework problems will be assigned regularly, either from the problems in the textbook or from a handout (which will be placed on this website if possible).  These will be graded chapter-by-chapter as check (it is complete and shows effort and some understanding), check-plus (meaning that it is complete, correct, and precise), or check-minus.  In my gradebook, a check-plus is recorded as a 4.0 (A), a check is a 3.0 (B), and a check-minus is a 2.0 (C).  Late homework loses one point (-1.0) per day of lecture, and it will not be accepted after the exam for that chapter.  Homework is due at the start of class each day, or it will be considered late.  I encourage you to work with others on the homework, as long as your homework is in your own words and you do not copy the mistakes of others.

Doing the homework can help your course grade in two ways.  First, by forcing you to study the material daily, it helps you perform better on the exams.  Second, on each of the three midterms I will give one-third weight to your homework average for the relevant chapters if your homework average is higher than your exam average.  For example, if you get checks (a 3.0 average) on your homework and a D (1.0) on your exam, then I will record an exam grade of 1.67 (a C-) in my gradebook.  On the other hand, if you get checks on all your homework and a 3.7 (A-) on your exam, then I will ignore your homework and record the 3.5.

This class requires competency in basic math skills, and I will give a quiz in class on Wednesday.  To encourage you to refreshen your math skills, I will give you 0.20 bonus points on your final grade if you can pass this exam.  Because the skills are taught in high school, passing will require 80%!  For example, this would raise a 2.4 (C+) course average to a 2.6 (B-).  If you do not pass this first quiz, you may have one retry up in the Math Center, and I will give you 0.10 bonus points if you can pass it.

See Expectations and a Sample Quiz!

You cannot learn the material if you do not come to class and are not mentally engaged.  To encourage your participation, I will give up to 0.30 bonus points on your final grade for participation.  To discourage you from skipping class, I will subtract 0.10 points from your final grade for each unexcused absence (you will get one freebie).  Arriving late or leaving early may result in a deduction of 0.05.  Excused absences require evidence in writing.  Be warned!  Poor attendance can devastate your grade!

A Modest Proposal for Students in the Classroom

You can earn bonus points on your final grade by making a forecast of economic variables in the Great Unpredictable Economic Statistic Society.  Rewards for the top three guesses will be 0.20, 0.15, and 0.10 bonus points.  The consolation prize is 0.05 points for what I consider to be a reasonable guess.  Here are the statistics to forecast.  Your guess is due on Monday, June 12.

Where do you look for historical information?  Good internet sources are listed on the links page of EC/ODE, the UNR economics club.  You might also check out Dismal.com.

Economics tutors are available at no charge through Student Services (Thompson 107, 784-6801) if you sign up for a small tutoring class, or they can arrange private tutoring at a reasonable hourly rate.  The Mathematics Center (AB 610, phone 784-4433) also provides tutors at no charge to you, and they can help you with your difficulties on the math competency exam, or with other mathematical problems in this class.

Don't miss an exam, for this is a sure-fire way to fail the course.  It is better to turn in your homework late than incomplete, and don't neglect to do your homework.  Study!  Use the materials:  read the assigned chapter before you do the homework, and take the practice tests in the study guide.  Don't cram all your studying in the night before the exam, for you will not only be too tired to think, you will not be able to process all the information.  Tutoring is highly recommended.  Finally, studying in groups is highly recommended, as long as each member of the group pulls his or her own weight, and you each remain responsible for learning the material.  Do not copy other students' homework, for I will not grade it for either of you if you do.

The Difference between A and C students!

Lecture Schedule

In order to facilitate better communication between students and make it possible for me to send relevant information to students by e-mail, I require all students to subscribe to the ec101parker e-mail class list.  This "List Service" mailing list uses the Majordomo software.  Once you are subscribed, you or I can contact everyone on the list by sending an e-mail to ec101parker@unr.edu.

To subscribe, you should be signed in under your own e-mail account.  Then send a message to the Majordomo automated list manager at majordomo@unr.edu.  The title of the message is not important, but the message text should say only:

subscribe ec101parker

You should get a response from Majordomo within an hour confirming your registration. This is a computer program, so watch your spelling!  If you are e-mailing from a university computer, it may not recognize your personal information.  If so, try:

subscribe ec101parker firstname lastname <email@address>

If you don't get a positive response, try it again and c.c. a copy of your message to me at elliottp@unr.edu, then forward me Majordomo's reply and I can take it from there.  For information on the available Majordomo commands, send an e-mail to majordomo@unr.edu with the single word:

help

in the message text.  For example, you can say who ec101parker and get a list of everybody subscribed.

Only people actually subscribed to the list may send any e-mail to the list.  To send an e-mail to the everybody on the list, including me, send your e-mail to ec101parker@unr.edu.  If you want to talk to me alone, send your message to elliottp@unr.edu.

There are some rules of internet etiquette (or netiquette). Try to keep the spam down!  Be thoughtful of others, and do not carry on private, irrelevant conversations on the list.  If you wish to make a reply to an individual, be careful not to send it to the list.  Also, do not flame!  Give other students the respect you would demand of them; do not insult them explicitly or implicitly, and do not say anything vulgar or improper.  Remember that I will read your messages, and even if you send something to an individual it is easy for him or her to forward it on to me.

Links

First, check out the websites of the:

• Economics Club / Omicron Delta Epsilon - good data, jobs, and jokes!
• Economics Department - information on programs, professors, and courses.
• International Business Major.
• College of Business Administration.
• International Resource Center of Northern Nevada - links to international firms, visitors, agencies, etc.


Smartstocks.com has a free Stock Market Simulation Game you might want to try.  According to their announcement:

 
"We provide you a free stock account that starts with One Million dollars in funny money to invest however you want.  You can buy and sell online just like you would with a real online stock broker such as:  Ameritrade, E*Trade, or Charles Schwab.  It is a great way for you to learn about the stock market before risking your hard earned money in today's volatile market."
 


The New York Federal Reserve Bank has a good set of explanations (fedpoints) on the Fed and the intricacies of money and monetary policy.  The San Francisco Fed has a series of Quicktime clips on monetary policy suitable for high school students, as well as a list of online educational publications you might find interesting.

 
The UNR library has a long list of business/economics databases for article citations, abstracts, and statistical information, including a good index of economic journals (Econlit) from the Journal of Economic Literature, and a lot of other good reference information.  Many economics journals now have websites (the library has a different list of online business/economic journals), and you can find an article, read its abstract, and order it if you want the whole thing  For example, I manage the China Economic Review website.

• The Dismal Scientist has an economics site at www.dismal.com it calls "the best free lunch on the web."
• Economic Report of the President
• Current Economic Conditions (The Beige Book)
• Stat-USA (U.S. Department of Commerce website)
• U.S. Census Bureau
• Bureau of Labor Statistics
• The U.S. Budget (and links)
• The Federal Reserve
• Antitrust and Competition Policy
• Federal Reserve Bank of St Louis Database, FRED.
• Congressional e-mail directory

• The Nobel Laureates in Economics
• Great Economists and Their Times
• A Time Line of Economists of the Past
• The Classical Economists
• The Keynesian Economists
• You can find the entire text of Adam Smith's Wealth of Nations, as well as a site devoted to the works of Friedrich Hayek., or to the works of Milton Friedman.  See also the economics section of the Idea Channel.