MACROECONOMICS (ECO2013 – CRN 30505)

Three Credit Hours

SUMMER B 2004, JUNE 28 – AUG 2

6:00 – 10:15 p.m., Tuesday, Thursday, Room 5-230

 

INSTRUCTOR

 

Kleber Saavedra

Phone   (407) 282-4036 Home

            (407) 582-1203, VCC Social Sciences Department

Email:   Ksaavedra@atlas.valenciacc.edu

 

I don’t have specific office hours, but I am available on an “as-needed” basis to assist you on any matter related to the course.  I can meet with you before or after class, or at any other mutually convenient time. Just see me, or contact me by phone or e-mail to set up an appointment.   I always try to respond to phone calls and e-mails within 24 hours.

 

COURSE DESCRIPTION

 

This course is an introduction to economic theory and fundamentals of economic analysis.  Emphasis is on the study of macroeconomics: national income accounting, consumption, saving and investment, government spending in economic activity, influence of government, money and banking, problems of inflation and unemployment, international trade and its impact on domestic economic activity. For prospective economics majors and students with interests in specialized business curricula, completion of full Principles of Economics sequence (ECO 2013 and ECO 2023) is highly recommended.    

 

VALENCIA STUDENT CORE COMPETENCIES

 

Valencia Community College has established four core competencies that describe the learning outcomes for a Valencia graduate.  They are: THINK, VALUE, COMMUNICATE and ACT.  These general competencies are essential to lifelong success.  They can be applied in many contexts and must be developed over a lifetime.  They specify how learning can be expressed and assessed in practice.

 

COURSE OUTCOMES

 

We will discuss current macroeconomic issues, how they relate to the theory, and how they affect us.  Issues to be discussed include government intervention in specific economic activities through fiscal and monetary policy.  By the end of the course, you should be able to understand and intelligently discuss the economic world around us. This course will enable students to apply three competencies (Think, Value, and Communicate).  Students will be required to think critically, to analyze and integrate controversial economic theories and ideas, to draw well-supported conclusions, and to communicate their conclusions through team discussions, papers and oral presentations.  Outcomes for this course include: increased students’ critical thinking and communication skills, and improved understanding of macroeconomic issues, particularly international trade and its implications for the U.S. economy and individual consumer.

 

TEXTS

 

1)      Required: Macroeconomics, Principles, Problems, and Policies, 15th edition.  McConnell & Brue

2)      Optional: Study Guide to accompany McConnell & Brue

 

OTHER RESOURCES AND MATERIALS

 

Students may be required to use the following resources throughout the course.  Therefore, it is important that you spend time at the beginning of the course getting acquainted with them.  These resources will also be used in class during the course. 

 

1)      Wall Street Journal (available at the LRC, building 6)

2)      The internet Resources:

McConnell’s web page:  www.mhhe.com/economics/mcconnell15

Bureau of Labor Statistics:  www.bls.gov

Federal Reserve System:  www.federalreserve.gov

Federal Reserve Economic Data (FRED):  www.stls.frb.org

The Conference Board: www.conference-board.org

Federal Trade Commission:  www.ftc.gov

OPEC:  www.opec.org

FTC and Justice Department on mergers:  www.ftc.gov/bc/docs/horizmer.htm

Justice Department Anti-Trust Division:  www.usdoj.gov/atr

Congressional Budget Office:  www.cbo.gov

For proper grammar (for paper): http://community-2.webtv.net/solis-boo/Grammar1/

For proper format (for paper): http://www/gale.com/free_resources/term_paper/index.htm                    

 

GRADING POLICIES AND PRACTICES

 

Grades will be based on the standard VCC grading scale:

A  =  90 – 100; B  =  80 -  89; C  =  70 -  79; D  =  60 -  69

Weights:

            Test One                                                                       20.0%

            Test Two                                                                       20.0%

            Test Three (Final Exam – not cumulative)             20.0%  

            Six Quizzes                                                                    15.0%

            Four Team Discussions                                                   15.0%

            Research paper or Oral presentation                                10.0%                                      

            Total                                                                 100.0%

 

TESTS

 

There will be three tests during the course, each worth 20.0% of the total grade.  Students who fail to take test one or two at the designated time (see course schedule) MUST make arrangements with me for taking a make-up test.  Make-up tests will be approved only in cases of emergency.

 

QUIZZES

 

There will be six quizzes during the course.  The dates of these quizzes are given on the course schedule. They will be worth 15% of the total grade (equally weighted at 2.5% each). Quizzes will be in the form of short-answer and problems, and will be taken at the beginning of each session and prior to covering the material in class. Therefore, students must read the chapters assigned prior to coming to class.  No “make-up” quizzes are allowed.

 

 

 

TEAM DISCUSSIONS

 

Team discussions are intended to promote group collaboration and to stimulate an interest in analyzing and solving important problems of economic policy.  They should help students get a firm grasp of basic principles and analytical tools necessary to think intelligently about economic problems, make reasoned judgments, draw their own conclusions and communicate their findings.  There will be four team discussions (all in the classroom) during the course, worth 15% of the total grade (3.75% each).   Students will be grouped in teams of 3-6 persons (depending on class size).  Using Pro and Con grids, each team will discuss and, at the end of the discussion, handwrite and turn in a one-page report on the pros and cons, benefits and costs, of alternative policy decisions on topics selected for group papers and oral presentations (See “Pro and Con Grid” Topics below). The one-page report must include the students’ own opinion(s) and recommendation(s).  Teams will be allowed to use the textbook, study guide, articles, notes and any other available material.  Reports will be graded based on the Research Paper, Team Discussions and Oral Presentation Rubric provided below. Students who do not participate in the discussions will receive zero credit for any discussion missed.

 

RESEARCH PAPERS / ORAL PRESENTATIONS

 

Every student will be required to write a paper or do an oral presentation on a topic selected from the list provided by the instructor (See “Pro and Con Grid” Topics below). Students must analyze the economic theories and ideas covered in the subject matter, make reasoned judgments and draw their own conclusions. The paper must be 3-5 pages long, single-spaced, and must include introduction, main body and conclusion(s).  An additional page with list of works cited must be included.  Students electing to do a presentation must submit a written summary of it, and must follow the same format as the paper (introduction, main body and conclusion).  Adherence to intellectual standards of clarity, accuracy, relevance, depth, breadth, logic and professionalism (see Research Paper, Intellectual Standards below for details) is required.  Students are expected to apply the Think, Value and Communicate competencies.  Websites are available for help with proper grammar and paper format (see above list of internet resources). Both, the paper and the presentation will be graded based on the Research Paper, Team Discussions and Oral Presentation Rubric provided below.  Oral presentation must be 5-10 minutes. Students must select their topic by July 1.  A rough draft of the paper must be submitted for review by July 20, and the final version is due by July 27.   Oral presentations will take place during the last week of classes.

 

ASSIGNED PROBLEMS/QUESTIONS NOT TO BE TURNED IN

(Worth up to 5% of Total Grade)

 

The following five problems/questions are optional and may be completed by those students who cannot take all the quizzes and/or participate in all the team discussions.  They may count for up to 5% of the total grade (up to 1% each).  These assignments must be completed, but not turned in, by the below due dates. I will collect them without prior notification; therefore, students must be prepared to turn in assignments due at all times. Any student who doesn’t turn in the assignment(s) when requested will receive a grade of zero. Incomplete or late assignments will receive a grade of zero. No make-up assignments are allowed.

 

Chapter           Question #                               Page                Due Date

Two                  Eight                                         38                     July 1

Four                  One                                          70                     July 8

Six                    Seven                                       112                   July 13

Twelve              Six                                            241                   July 22

Fifteen              Four                                          303                   July 27

STUDENT PREPARATION PRIOR TO CLASS

 

Students are expected to read the chapters and material assigned prior to class, as a minimum.  Failure to do so will result in poor grades on quizzes.   Students are responsible for the material assigned.

 

CLASSROOM ACTIVITIES AND PARTICIPATION

 

In addition to the quizzes, team discussions and presentations, classroom activities will include “minute papers,” end-of-chapter discussions, videos and other activities, as announced by the instructor.  Minute Papers will be part of the review session prior to each of the four tests.   They are intended to help evaluate the effectiveness of the learning process, and to highlight areas that need further discussion.  Students will have an opportunity to submit questions or concepts/ideas that remain unanswered or need clarification during the review.

 

STUDENT ATTENDANCE

 

Students are expected to attend all class sessions.   Any student absent two sessions (either in a row or cumulatively), without a valid excuse, will be warned about the danger of being withdrawn from the class.   Repeated absences after warning will result in withdrawal from the class.  Exceptions for emergencies will be considered.  There will be a roll call every single session.  A significant portion of each test is drawn from the classroom material and discussions.  Students missing any class sessions, or that have to leave a class session early, are responsible for any missed class work and/or related announcements during their absence.   It is against policy to leave a class session early without the instructor’s approval.  For text of Student Code of Classroom Conduct, refer to http://valencia.cc.edu/security/procedures.htm

 

ACADEMIC HONESTY

 

Any form of academic dishonesty on an exam, paper or quiz will result in a grade of F for the exam, paper or quiz in question, as a minimum penalty.  Academic dishonesty includes, but is not limited to, plagiarism, cheating, furnishing false information, forgery, alteration or misuse of documents, misconduct during a testing session, and misuse of identification with intent to deceive.

 

WITHDRAWAL AND GRADING POLICY

 

The withdrawal deadline for a “W” grade is July 16.  Knowledge of withdrawal policy and procedures is the student’s responsibility.  All students are required to take the final examination (test three) on July 29.  If you do not withdraw and fail to take the required final examination, you will be assigned a WF (withdrawn failing), which counts toward your GPA.  An incomplete (I) will be assigned only if you are progressing satisfactorily but cannot complete the course because of an emergency.  Full details of grading policy are found in the college catalog.     

 

STUDENT CODE OF CLASSROOM CONDUCT

 

For the complete text of the Valencia Student Code of Classroom Conduct, go to http://valencia.cc.edu/security/procedures.htm

All students are expected to be familiar with and abide by the provisions of this code.

Research Paper, Team Discussions & Oral Presentation Rubric

 

 


 


Levels of Achievement

Criteria

Excellent

90-100

Good

80-89

Average

70-79

Below Average

0-69

Understanding of topic selected for discussion

Paper/Presentation demonstrates a high level of understanding of topic selected. The reader and listener can tell that you have researched the subject matter thoroughly.  Rich in Pros and Cons and in personal insight

Paper/Presentation shows an intermediate level of understanding of topic selected. The reader and listener can tell that you have researched the subject matter but wish you had provided a more in-depth analysis. Fair amount of Pros, Cons and personal insight

Paper/Presentation demonstrates a low level of understanding of topic selected. The reader and listener can tell that you have not done “your homework.”  Pros, Cons and personal insight are limited

Paper/Presentation shows lack of understanding. The reader and listener are left confused, and do not understand what you are trying to say. Pros, Cons and personal insight are lacking

Communication of Ideas

Complex ideas and principles are explained in a very clear manner. Relevant details, examples and evidence are provided.

Complex ideas and principles are explained but some remained obscure. Few details, examples and evidence are provided.

Attempt is made to explain ideas and principles, but few are explained.  Hardly any details, examples or evidence.

No serious attempt is made to explain ideas and principles. None are explained.  No details, examples or evidence.

Organization and format

Paper/Presentation is very carefully organized and delivered, clearly showing an introduction with clear purpose, body of detail and conclusion(s). Paper makes proper references to works cited and researched. Works cited list included.

Paper/Presentation are logically organized, and include introduction, detail and conclusion(s). Paper makes references to works cited and researched, but it is incomplete and not in proper form. Works cited list included.

Paper/Presentation show lapses in organization and focus. Introduction, body of detail and conclusion(s) hard to identify.  Few references to works cited and researched, and lacks proper format. Works cited list is incomplete.

Paper/Presentation disorganized and lack focus. No distinguishable introduction, body of detail or conclusion. No references to works cited or researched. Works cited list is missing.

Delivery of Oral

Presentation

Oral Presentation. Very articulate. Rich voice inflection, use of body language, visual aids, and eye contact.  Very little reading from notes.  Maintained audience’s attention.

Oral Presentation. Some voice inflection, use of body language, visual aids, and eye contact.  Some reading from notes.  At times lost the audience’s attention.

Oral Presentation. Very little voice inflection, use of body language, visual aids, and eye contact.  Heavy reading from notes.  Did not gain audience’s attention.

Presentation very poor. No voice inflection, use of body language, visual aids, or eye contact.  Heavy reading from notes.  Lost the audience.

Language and Grammar

No incorrect spelling, syntax or punctuation errors.  No redundancies.  No improper use of terms. Language is rich, varied and precise.  Proper sentence length and structure.

Very few syntax, punctuation or spelling errors.  No redundancies.  No improper use of terms. Language is somewhat rich, varied and precise.  Proper sentence length and structure.

Quite a few syntax, punctuation and spelling errors and redundancies.  Some improper use of terms. Language is very limited and imprecise.  Proper sentence length and structure lacking.

Too many grammatical errors.  Language is very poor, and sentences are long and confusing. 

Preparation and References

A rich list of works Researched and cited.   Shows a substantial amount of research and preparation

A decent list of works researched and cited.   Shows a fair amount of research and preparation

Few works researched and cited.   Shows a little amount of research and preparation

Hardly any works researched and cited.  Shows hardly any effort to do research and/or prepare adequately.

 

 

 

 

Research Paper, Team Discussions and Oral Presentation –

Appropriate Methods

 

Learning Outcomes

Performance Criteria

Assessment Techniques

Instructional Strategies

Achieve a higher level of understanding of complex concepts and ideas related to topic(s) selected

Students demonstrate a superior level of understanding of conflicting viewpoints and interpretations of key economic phenomena related to topic selected.  This understanding is supported by students’ ability to explain the ideas and concepts to others by use of specific details, facts, and demonstrated personal reflection and insight.

Student papers and oral presentations will be used to measure achievement of standards specified in the rubric attached.

Strategies will include use of Pro and Con grids, minute papers, class discussions, review of current events and news.

Develop the ability to distinguish between economic facts and opinions; unlearn incorrect or incomplete knowledge about economic events

Students demonstrate substantial progress in unlearning incorrect or incomplete knowledge and acquiring factual information. 

Student papers and oral presentations will be used to measure students’ progress toward acquiring a knowledge base based on facts.

Strategies will include use of minute papers, class discussions, review of current events and news.

Analyze conflicting ideas, interpretations and perspectives

Students will be required to consider multiple viewpoints for each subject analyzed.

Students will show individual contribution to group discussions of conflicting opinions, team discussion  papers and oral presentations

Class discussions, group meetings, review of current events

Critically evaluate others’ points of view.

Students will evaluate conflicting perspectives by making a well-reasoned judgment as to the merits of each perspective

Student papers and oral presentations will be used to measure students’ critique and evaluation of others’ points of view from all sides of the argument.

Class discussions, group meetings, review of current events

Draw your own inferences and conclusions

Students will be required to present their own ideas and conclusions on the subjects considered.

Student papers and oral presentations will be used to determine whether individual independent opinions have been presented.

Class discussions, group meetings,

Communicate in writing and orally

Students will communicate effectively through their oral presentations, their papers and in class discussions.  They will communicate clearly and make a distinction between theirs and others’ viewpoints.

Students’ performance in effective communication will be measured using standards specified in rubric attached.

Review of effective communication standards, including proper grammar, format and delivery, found in various communication aids including several websites. 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Pro and Con Grid” Topics

For Individual Papers, Oral Presentations and Team Discussions

 

Trade Deficits, Are they Good or Bad?

 

The United States is currently running a trade deficit of over $100 billion a year with China, or about 1% of U.S. Gross Domestic Product.  You should come up with at least two costs and two benefits to the U.S. economy from this trade deficit.

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

 

President Bush’s Tariffs on Foreign Steel

 

Presently Bush imposed hefty tariffs on imported steel. Come up with at least two benefits that prompted President Bush to impose these tariffs, and at least two costs that the U.S. economy will bear as a result.

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

 

Government-Provided Subsidies to U.S. Farmers

 

Historically, the United States has always provided subsidies to U.S. farmers.  More than a year ago, a new round of subsidies was approved.  Make a list of at least two pros and two cons of continuing to provide these subsidies.

 

Pros                                                                                        Cons

 

 

 

 

 

 

 

 

 

 

 

A Weak U.S. Dollar

 

A weak U.S. dollar, as has been experienced lately, has significant implications for the U.S. and world economies.  Provide at least two costs and two benefits that a weak U.S. dollar brings to the U.S. economy. 

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

Labor Costs in the U.S. and Abroad

 

The cost of labor in the United States is significantly higher than in many other countries.  As a result, businesses often elect to manufacture their products in countries where they can produce more cheaply.  List at least two costs and two benefits to the U.S. economy as a result of this situation.

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

 

“Buy American.”

 
Buying U.S.-made goods vs. goods made overseas is proposed by many as a great policy to protect U.S. jobs.  Come up with at least two costs and two benefits of following such policy.

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

 

U.S. Budget Deficits and the National Debt

 
The recent tax cuts and the war in Iraq have contributed substantially to an increase in the U.S. budget deficit and the National Debt.   Provide at least two benefits and two costs to the U.S. economy resulting from this situation.

 

Costs                                                                                      Benefits

 

 

 

 

 

 

 

 

 

 

 

The topics selected above for the “Pro and Con Grids” will be the basis for individual papers and oral presentations by students. 

 

 

 

 

 

 

 

 

 

Student Reflection

 
 


                         RESEARCH PAPER

 

Prepare a 3 to 5-page (single-spaced) essay to address the question/topic selected from the list provided.  You should use as many outside sources as possible to help you gain a complete perspective on all sides of this controversial question.  You must analyze and present at least two sides of the issue. You must then answer the question based upon your own viewpoint.  You must state how and why your answer ties in with economic theory and principles. A grading criteria is itemized below that will provide you with insight to the Intellectual Standards that will determine how your essay will be graded.

 

 

Intellectual Standards

 

Key Components

 

Steps Involved

Clarity:  are your topic, purpose, questions, and information clearly stated?

State concept/problem/issue.

Elaborate on statement.

Illustrate with metaphor, analogy, picture.

Exemplify by giving a concrete example.

Accuracy: is the information from which you draw your conclusions accurate and precise?

Verify your data.

Use scholarly resources.

Share sources so community can check them.

Relevance: is the information relevant to the topic/question, is it appropriate to Economic thinking?

Show that your writing bears on the issues.

Answer the questions that you pose.

Identify how this data/action helps with the issue.

Depth: are the data and the explanation complex enough to address the topic chosen?

Identify causal factors, “the why.”

 

Breadth: are multiple viewpoints considered? Is data gathered across historical periods or cross-nationally?

Identify perspectives, i.e., historical, national, cultural, political, biological.

Consider alternative points of view.

Logical: does your reasoning make sense? Do you contradict yourself? Do your conclusions/actions follow logically?

 

Premises support, not contradict each other.

Effects follow from causes.

Conclusions/actions are relevant to the issues.

Multi-causality and over-determination are considered.

Professionalism:  Is your work neat? Would your paper be accepted in the business world?

Papers must be typed and single spaced

-1 errors from not proof reading

-2 errors from not checking spelling

-3 Other grammatical errors

 

 

 

 

 

 

 

 

 

 

COURSE SCHEDULE*

*Subject to Change

Date

Assignments

Classroom Activities

Jun 29

Chapter 1, The Nature and Method of Economics

Appendix: Graphs and Their Meaning      

Review of Syllabus and Course Schedule

Discussion – Questions, Chapter 1

 

Chapter 2, The Economizing Problem

Discussion – Questions, chapter 2

Jul 1

Chapter 3, Individual Markets: Demand & Supply

Quiz # 1 On Chapters 3, 4

 

Chapter 3, continued

 

Video on Equilibrium

Discussion – Questions, chapter 3

 

Chapter 4, The Market System

Selection of Topic for Papers/Team Discussion/Oral Presentations

Chapter 2 Optional Question due

Discussion – Questions, chapter 4

Jul 6

Chapter 5, U.S. Economy: Private and Public Sectors

Quiz # 2 on Chapters 5, 6

 

Chapter 6, The United States in the Global Economy

Discussion – Questions, chapter 5

Discussion – Questions, chapter 6

 

Review Chapters 1-6 (Minute Paper)

Team Discussion # 1 on Topic Selected

Jul 8

Test on Chapters 1-6

Test One, 6:00 – 7:15 pm

Chapter 4 Optional Question due

 

Chapter 20, International Trade

Discussion – Questions, chapter 20

 

Chapter 21, Exchange Rates, Balance of Payments and Trade Deficits

Discussion – Questions, chapter 21

 

 

 

Jul 13

Chapter 7, Measuring Domestic Output, National Income and the Price Level

Quiz # 3 on Chapters 7, 8

Discussion – Questions, chapter 7

 

Chapter 8, Economic Growth Unemployment and Inflation

 

Discussion – Questions, chapter 8

Chapter 6 Optional question due

Team Discussion # 2 on Topic Selected

Jul 15

Chapter 9, Building the Aggregate Expenditures Model

Quiz # 4 on Chapters 9, 10, 11

 

Chapter 10, Aggregate Expenditures: The multiplier, Next Exports and Government

Discussion – Questions, chapter 9

Discussion – Questions, chapter 10

 

Chapter 11, Aggregate Demand and Aggregate Supply

Discussion – Questions, chapter 11

 

Review Chapters 20,21, 7-11 (Minute Paper)

 

Jul 20

Test on Chapters 20,21, 7-11

Test Two, 6:00 – 7:15 pm

 

Chapter 12, Fiscal Policy

Rough Draft of Papers Due

Discussion – Questions, chapter 12

Team Discussion # 3 on Topic Selected

Jul 22

Chapter 13, Money and Banking

Quiz # 5 on Chapter 13, 14

Chapter 12 Optional question due

Discussion – Questions, chapter 13

 

Chapter 14, How Banks & Thrifts Create Money

 

Discussion – Questions, chapter 14

Video on Banking

 

 

 

Jul 27

Chapter 15, Monetary Policy

Quiz # 6 on chapters 15, 18

Video on Quantity Theory of Money

 

Chapter 18, Deficits, Surpluses & the Public Debt

Discussion - Questions, chapter 15

Discussion – Questions, chapter 18

 

 

Chapter 15 Optional question due

Team Discussion # 4 on Topic Selected

 

Final Papers Due

Oral Presentations (TBD)

Jul 29

Chapter 19, Disputes Over Macro Theory and Policy

Discussion – Questions, chapter 19

 

Review Chapters 13,14,15,16,19 (Minute Paper)

 

 

Final Exam (Chapters 12-15, 18, 19)

Final Exam 8:30 – 10:15 pm