Course
Description

Basic theory of national income anlaysis. Causes of unemployment and inflation. Monetary and fiscal policies of the federal government.

Methods of Course Instruction

All course content is presented on the World Wide Web; e-mail within the Blackboard and Aplia Web sites is used for the submission of all assignments. Multiple choice questions are graded instantaneously on the Blackboard web site. You will receive feedback on which questions you got "right" and "wrong" but not the right answers to the questions you got wrong. You are expected to reread the assigned chapter(s) and online notes pertaining to the subject matter for these questions so you can learn what you didn't know when answering these questions. The instructor's evaluation and comments on essay questions are also made on the Blackboard web site. Aplia assignments are graded instantaneously within Aplia. The grades for Aplia are exported to Blackboard.

News stories in The Wall Street Journal and other newspapers describe the nation's economic condition; but these stories can be confusing or incomprehensible to most citizens because they do not understand the economic concepts underlying the events. This course acquaints students with the language of macroeconomics. Macroeconomics examines the economy as a whole - the forest, not the trees. This course is divided into three parts.

The first part which covers - Chapters 6, 7, 8, 10, 11 and parts of 15 in Macroeconomics - begins with a study of GDP (gross domestic product), followed by aggregate demand, aggregate supply and the public debt.

In the first part the whole is measured by GDP or gross domestic product, which is defined, discussed, analyzed and explained with the use of logic, accounting tools and simple theoretical models.

The income and expenditure approaches to measuring GDP are developed from the basic income-expenditure identity. The differences between the income and expenditure approaches to determining GDP are discussed and analyzed in terms of their component parts.

One of the components of GDP examined from the expenditures approach is investment. This course examines gross and net investment, the role of inventory changes, and the impact of the net investment on economic growth. On the income approach to GDP, non-income charges such as depreciation and indirect business taxes are covered.

Another component of GDP is government expenditures, which also has a crucial role in determining GDP.

Price indices measure an aspect of economic activity. They can be used to deflate or inflate nominal or measured GDP or to measure the rate of inflation. Current GDP as a tool for measuring economic activity or welfare has shortcomings and these will also be examined. International comparisons of the size of the U.S. GDP and the "underground" economy are made.

Part 2 treats the demand and supply of money and the role of commercial banks in facilitating economic growth which covers - Chapters 12, 13, 14, 14W and 17- considers the subject of money and banking and monetary theory and policy. The role of the Federal Reserve - the central bank of the United States - is examined.

The second part of this course describes the crucial role of the money supply in the determination of GDP. The money supply is managed by the Fed, (the central bank in the U.S.) Both the money supply and the federal government's budget are given detailed attention and form the basis for monetary and fiscal policy. These policy tools are examined and evaluated for their contributions in stabilizing the course of economic activity in our economy.

We also examine the impact of the new economy factors of information and technology, on economic growth and some unsettled theoretical issues in macroeconomics.

Part 3 which covers - Chapters 16, 16W, 18 and 19 - focuses on international trade with particular reference to the United States and the economic development of poor countries. All components have the viewpoint of macroeconomics, that is, the study of the economy as a whole.

The third part of this course discusses the economic basis for international economic trade and the conditions necessary for trading partners to benefit from this trade. This part defines the balance of payments, describes the financing of trade, and proposes a number of explanations for the determination of exchange rates. The course concludes with an analysis of some proposals for the development of poor countries.

Upon completion of this course, students should be able to read and understand general articles on the economy that might appear in papers such as The Wall Street Journal

Materials

Required

McConnell, Campbell R & Brue, Stanley L. Macroeconomics, 17th edition. New York; McGraw-Hill Book Company, 2008. ISBN: 0073273082 (paperback)

OR

McConnell, Campbell R & Brue, Stanley L. Economics: Principles, Problems and Policies, 17th edition. New York: McGraw-Hill Book Company, 2008. ISBN: 139780073126630 (hardcover)

Additional or Optional Materials
Some multiple choice and essay questions from the following manual are used in this course:

Walstad, William B and Bingham, Robert C. Study Guide to Accompany Microeconomics, 17th edition. New York: McGraw-Hill Book Company, 2008. ISBN: 139780073273129 (paperback)

Special Offer from the Wall Street Journal (Optional) With their print and online subscription, students may bring their ideas to class so everyone will be on the same page. The online edition, WSJ.com, allows access to archives, alerts, newsletters, and more for research and follow up. If you subscribe, you will receive the print and the online Journal for 10 Weeks. Go to WJS.com to subscribe. NOTE: The hardcopy books for this course are in stock at College Bookstore, 740.594.3505. You can get an ebook text at: http://textbooks.uso.edu, where a 10% discount is available for Ohio Students.

Note: The books for the course are in stock at College Bookstore, (740) 594-3505. Click here for online ordering.

Note: Books for the course are in stock at the Zane State/OUZ Campus Bookstore or College Book Store in Athens, (740) 594-3505. Click here for online ordering.

Alternative source where materials should be obtained:

Exams
Requirements

Three (3) exams (2 midterms and a final exam)- Proctoring required

How are exams to be taken:
Traditionally. 

Dates of exams:
The first two exams (midterms) are to be taken on the weekend of the 3rd and 6th weeks, respectively. The final is to be taken during the 10th week.