Economics 114                                                                                         Le Moyne College
Dr. Paul Blackley                                                                                         Spring 2020

Office: RH334 (Hours: M 12:00-12:50, T 11:30-12:30, W 12:00-12:50, by appointment)

Phone: 445-4439

homepage: web.lemoyne.edu/~black_p/
 

Disability Support Services(DSS): The College makes accommodations for students with disabilities.  If you have a disability, please register with the DSS for disability assessment or verification and determination of necessary accommodations.  The DSS is located on the first floor of the Noreen Falcone Library [445-4118 (voice) or 445-4104 (TDD)].  Please meet with me to review your status and discuss the arrangements we will use to meet your needs if that is required.

Syllabus

Course Description: Economics 114 is a course in the principles of macroeconomics which examines the aggregate economy of the United States. The purpose of this course is for you to develop an ability to: (1) explain the workings of the macroeconomy, (2) formulate predictions of the general direction of the economy based upon current data and accepted macroeconomic models, and (3) assess the usefulness of alternative policies by which the government may influence the performance of the economy.

After a brief review of microeconomic concepts and an introduction to the Great Recession and it central position in much of our work throughout the semester, we begin the course with the measurement of unemployment, inflation, and economic growth and how they relate to the business cycle.  Throughout the course it will be important to distinguish between the causes and solutions to short-run problems such as recessions and the long-run forces which promote economic growth.  Following an assessment of long-run growth models, the main part of the course will involve development of the modern macroeconomic model of aggregate demand and aggregate supply.  The multiplier model will be studied as a special case of the general model when the economy is in recession.  The roles of money, banking, and the financial sector will be considered as well, especially in terms of how they relate to the real economy.  The course will then turn to the subject of macroeconomic policy, beginning with fiscal policy and issues related to deficits, surpluses, and the national debt.  Next considered are monetary policy and the debate concerning the existence and stability of the Phillips Curve.  Throughout the semester, areas of agreement as well as differences between the Classical and Keynesian views of macroeconomics will be emphasized.  We will conclude by studying the international dimensions of the U.S. economy, including the determination of exports and imports, trade policy, and international finance

Readings

Macroeconomics, 11th edition, by David C. Colander, McGraw-Hill Companies, Inc., 2020.

Current Events on Final Exam

At the  link above, you will find the information needed for preparing for the the current events portion of the final exam. At the bottom of this page are two links to internet sites that will be helpful for obtaining the appropriate data.

For classroom discussions and exams, you will need a working knowledge of the current state of the macroeconomy. The best way to stay informed is by a subscription to the Wall Street Journal, which will be used as a source for economic data, current events, policy actions and assigned readings on the macroeconomy, particularly for the third exam.

Course Outline: Weekly reading assigments from the text and exam dates are listed below.  Exam dates are tentative. A after a number indicates appendix to that chapter should also be read.

WEEK TOPIC CHAPTERS
Jan. 20 Review of Basic Economics 1-5, 2A, 3A
Jan. 27 Issues in Macroeconomics 6

15 (328-336)

Feb. 3 Measuring the Aggregate Economy 7

16 (348-353)

Feb. 10 Long-Run Economic Growth 9
Feb. 17 Exam 1
Feb. 24 Short-Run Keynesian Model 8
Mar. 2 The Multiplier Model 8W 
Mar. 16 The Financial Sector 10, 10A
Mar. 23 Monetary Policy

Exam 2

11
Mar. 30 Financial  Crises and Panics

New Monetary Policy

12
Apr. 6 Deficits and Debt 13
Apr. 15 Assessing Fiscal Policy 14
Apr. 20
Apr. 27

Inflation and the Phillips Curve


16
May 4 Summary and Review
May 8Final Exam 9:00 AM