Principles of MacroeconomicsECON 104--Four Quarter Hours Dr. Douglas Adie |
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Please refer to the complete final course syllabus available on the course Website once the course begins.
Course
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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. In the first part the whole is measured by GDP or gross domestic product, which is 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 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 measure the rate of inflation. Current GDP as a tool for measuring economic activity or welfare has shortcomings and these will be examined. International comparisons of the size of the U.S. GDP and the "underground" economy are made. 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.) Both the money supply and the federal government 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. We also investigate some unsettled theoretical issues in macroeconomics. 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. This course is divided into three parts: The first part which covers--Chapters 6,7, 8, 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. 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 and17--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. 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.
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Prerequisites
| Math 101 or higher Math placement. |
Methods of Course Instruction | Blackboard course content, text, lecture notes, regular assignment submissions and returns. |
General Course Requirements |
Weekly assignments, 2 midterms and a final. |
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Materials | |
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Required |
McConnell, Campbell R & Brue, Stanley L. Macroeconomics, 17th edition. New York: McGraw-Hill Book Company. 2008. (paperback) ISBN: 9780073273082 or McConnell, Campbell R & Brue, Stanley L. Economics: Principles, Problems and Policies, 17th edition. New York: McGraw-Hill Book Company. 2008.ISBN: 9780073126630
Walstad, William B. Study Guide to Accompany Macroeconomics, 17th edition. 2008. ISBN: 139780073273204
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Exams
| 2 midterms and a final - Proctored Dates of Exams |
Call the Ohio University Online Staff at 1-888-551-6446 if you have questions about this course or the enrollment process.
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