Intermediate Macroeconomic Theory Syllabus

Spring 2012 ECON 2122:01 and ECON 2122:02

University of Northern Iowa

Instructor Information

Professor Kanago

Office: 206 CBB

Office Hours: M 11:00-12:00, T 8:30-11:00, W 11:00-12:00

and as available and by appointment.

E-mail questions are generally answered within 24 hours.

Phone: 273-2951

E-mail: bryce.kanago@uni.edu

Website: www.business.uni.edu/kanago/

Course Outline

Topics and chapters covered

Unit 1:  The Economy in the Long Run                      Chapters 3, 5, 6

Unit 2:  Inflation and Growth

 2.1 Inflation                                                     Chapter 4                               

             2.2 Economic Growth                                    Chapters 7, 8   

Unit 3:   Basic Short-Run Macroeconomics              Chapters 9-11

Unit 4:  Advanced Short-Run Macroeconomics        Chapters 12-14

Unit 5:  Government Debt                                          Chapter 16

Dates of Exams and Due Dates of Homework

Unit 1:

1/30     Homework 1 Due

2/3       Exam 1

Unit 2:

2/20     Homework 2 Due

2/27     Exam 2

Unit 3:

3/23     Homework 3 Due

3/28     Exam 3

Unit 4:

4/18     Homework 4 due

4/23     Exam 4
Unit 5:

4/27     Homework 5 due

Final:

4/30     Final Section 2 10:00-11:50

5/2       Final Section 1 10:00-11:50   

Texts

Course Overview and Objectives

Course overview

In this course you will learn about the overall behavior of the economy.  The study of macroeconomics includes the “big” issues, technological progress, economic growth and the standard of living, the ups and downs of output, unemployment, interest rates, and inflation.  You will study how these variables behave, how they are related to each other, and how government policies can affect them.  This is not a course about the everyday mechanics of business management.  However, business owners and managers are well advised to understand how the economy behaves and to be informed about the consequences of government policy. 

Further, many of the tools and the logic used by macroeconomists to study the economy have general applications.  Someone who learns macroeconomics also learns to consider how people respond to incentives, to think about unintended consequences, to be a better abstract thinker who can focus on the key issues, and to think logically about a sequence of changes and responses.  Thinking hard about economic issues and models will improve your analytical and reasoning skills.  A basic understanding of macroeconomics and macroeconomic policy should be part of the knowledge of informed business managers, financial advisors and portfolio managers, accountants, and voters, especially those who are interested in connections between the government and the economy.      

“In order to be able with any safety to interpret economic facts, whether of the past or present time, we must know what kind of effects to expect from each cause and how these effects are likely to combine with one another."

Alfred Marshall

This course focuses on theory more than application.  The analysis mostly involves considering the consequences of shocks or policy on macroeconomic variables.  Primarily this analysis requires considering the chain of consequences of a shock or policy change.  Graphs, rather than equations, are the primary tool used to help understand and apply this analysis.

Exercise and Develop Professional Behavior

Come to class prepared to learn.  Get to class on time.  Ask me, not your neighbor, questions.  Keep your cell phone, laptop, and other electronic devices put away.  Pack up your notebooks only after I have ended the lecture.  I can lecture more effectively and students learn better when there are not distractions.  If you don’t want to be in class, don’t show up.

Habits of Effective Students

Come to class on a regular basis ready to learn and take good notes.

Read the text.  You are responsible for all the material in the text even if I do not cover it in class.   If you actively engage in reading, you will learn to teach yourself which alums report is a very important skill for having a rewarding and successful career.

When reading the text some students take notes or write key points in the margin.

Use the study guide.  It provides practice and feedback.  Use it to determine what concepts you need to study further.   I will send out information on which problems and exercises are relevant. 

Study on a regular basis.  Doing so is a much more effective way of learning than cramming.

Use office hours, email or make appointments to get help with topics or concepts you have trouble understanding.

Tips on Studying

The Oxford Dictionary defines studying as the devotion of time and attention to acquiring knowledge on an academic subject, especially by means of books.

If you approach your education the same way you would approach your professional career or operating your own business, you should spend about two-three hours studying outside of class for every hour you spend in class. 

To a large extent how much you get out of a class depends on the efforts you make.  It’s not simply the number of hours you are in class or the hours you spend studying, but how effectively you use this time.

When you study you should have two goals in mind.  First, study with the intention of increasing your understanding of the material. Second, work to perfect your ability to do problems.   Make notes of errors in your thinking and problems you get wrong so you can learn from your errors and perfect your practice.

The notes, the text, and the study guide are the most important study tools.  The text also has a helpful companion site with glossary flashcards and quizzes.  This site is linked from my website.

Assessment

Homework

There are five graded homework assignments.  Each is worth 10 points.  Due dates are given above.

Exams

There are four midterm exams.  The dates are given above.  The four midterms each have twenty-five multiple-choice questions, and a short-answer section worth 20 points for a total of 70 points.

The final has five sections.  For each of the previous four units there is a section with eight multiple-choice questions, and 10 points of short- answer questions.  For chapter 16 there are 5 multiple-choice questions and 6 points of short answer questions.  There are 120 points on the final.

Improvement points

You will receive two improvement points for every percentage point by which your percentage on the final exceeds the percentage on your combined midterm scores.

Scale

There are a total of 450 points on the homework, midterms and final.  You can also earn improvement points and there may be a few opportunities for a very small number of bonus points.  The tentative grading scale is given below.

Polices

Exam design

The exams are written by me and based on the notes, the text, and current events.  Each exam will have one or two questions on current events.  So, keep up with the current events posted on my website.  Some questions may be based on end-of-the-chapter problems or questions from the study guide or online resources.  Questions will be divided about equally between chapters, with some emphasis given to chapters which more class time is devoted to.  Questions may cover basic facts and definitions; graphs, equations, and logic; and applications requiring you to use different numbers or different changes in directions than those provided in examples you have seen in class.  

Make-up examinations

If you are ill or have a valid excuse, you may take a make- up examination.  Except in unusual circumstances, you must notify me at least 48 hours in advance that you need to take a make-up for a reason other than illness, and within 24 hours after or as soon as possible otherwise for illness or injury.  Make-up exams are designed to be of similar difficulty to the regular exam, but will have different questions.  Depending on the circumstances and how many students need to take a make-up, the make-up may be administered before or after the regular exam.  Make-up exams are not offered for your convenience.  They are designed for people who are unable to be present on the day of the exam.

I will allow you to take the final with the other section if you give me advance notice.  Otherwise, you must take the final exam at the scheduled time unless you have a university approved absence or excessive examination load (three finals on the same day – which you should try to avoid when you schedule your classes) . 

Grade appeals
You have the right to make an appeal to me concerning the grading of your homework or short answers.  However, all appeals must be in writing and explain what the grounds for your appeal are.  “I need a higher grade because....” will never work as an appeal.  Appeals should be made within three weeks from the time that the exam or quiz was taken.

Getting grades

Grades will be posted on e-learning.   Let me know if you need help using it.  I do not provide specifics of grades by phone or e-mail. 

CBA and University Policy

ADA policy
The Americans with Disabilities Act of 1990 (ADA) provides protection from discrimination for qualified individuals with disabilities.  Students requesting instructional accommodations due to disabilities must arrange for such accommodation through the Office of Disability Services.  The ODS is located in room 103 (upper level) Student Health Center.  The phone number is (319) 273-2676.

Students who have special needs of any sort are encouraged to make me aware of them and to discuss any arrangements that may be necessary or helpful.  For example, you should let me know if you need to sit near the front of the classroom for any reason.  However, I often cannot do anything unless you have first contacted the Office of Disability Services and followed their procedures.

CBA course repeat policy
Students enrolled in a CBA course at the beginning of the second week of the spring semester will not be allowed to register again for the same course until the end of advance registration for the fall semester.  Students who wish to re-register for a course may place their name on a waiting list.  Registration accommodation will depend on course openings after the completion of fall advance registration.  Summer session is excluded from this policy.

Academic dishonesty policy
Academic dishonesty includes all dishonorable academic behavior.  This includes, but is not limited to claiming the work of others as one’s own.  Students should be clear on what, if any, cooperation with other students is permissible on an assignment before working together.  University policy concerning cheating allows faculty to assign an F in the course and send a letter concerning the incident to be kept on file by the Vice President of Academic Affairs.  Details of University Policy may be found online at uni.edu/policies/301.

I make special efforts to prevent and detect cheating.  However, if you observe cheating please let me know as soon as possible.  It is easier for me to take timely actions and impose penalties if you notify me immediately.

Deadlines

The consequences of dropping a course differ depending on when you drop.  It is your responsibility to be aware of these deadlines and you should expect that I will not make exceptions to them.  Academic deadlines are available at: 
uni.edu/registrar/dates-to-observe.