UNIVERSITY OF SOUTHERN INDIANA

DEPARTMENT OF ECONOMICS AND FINANCE

ECON 209 - PRINCIPLES OF MACROECONOMICS

DR. CASHEL-CORDO   FALL 2008

Economics is the painful elaboration of the obvious.

TEXT:  The Macroeconomy Today, 11^th Edition, Schiller, McGraw-Hill Irwin, 2008

Recommended Companion Websites –

McGraw-Hill Irwin Student Companion Website

The chapter multiple choice questions are a good tool to gauge your understanding.

Careers for Economics Majors – useful information for interested students

Mother lode of economic related topics – wide variety of economic related topics; follow the “neat stuff” link for economic jokes

COURSE PREREQUISITE:  College Algebra, MATH 111 or its equivalent

COURSE CONTENT:  Economics is a social science that explores how a society, through the decision making of individual agents, allocates its scarce resources in the production, exchange and consumption of different goods and services.  Macroeconomics studies the aggregate behavior of these agents in their roles as households, business firms, and government policy makers.  The main focus of this course will be the study of government fiscal and monetary policy as it applies to avoiding inflation and unemployment in the aggregate economy.

COURSE OBJECTIVES:  This course serves as or fulfills requirements for several different constituencies.  As such, it has an extensive list of objectives.  Being a foundation course in the economics department, this course introduces students to the principles of macroeconomics.  At the end of this course students should be able to:

Define relevant economic vocabulary and concepts

Apply these concepts in explaining the behavior the different economic agents within the macro economy,

Predict outcomes of fiscal and monetary policy as they relate to inflation and unemployment

Interpret and use graphs to explain macroeconomic concepts,

Use simple algebra to conduct economic analysis.

Analytical Problem Solving – Economic reasoning is analytical thinking.  By the end of this course the student should be able to identify and apply relevant economic concepts to solving a variety of economic problems and should be able to interpret the results of their solutions. 

UCC - C2:  This course serves in the fulfillment of the University Core Curriculum in the C2-Category, An Understanding of Individual Development and Social Behavior.  The objectives of this category are, as described in the UCC guidebook:

Students should know how individuals develop, interact, and organize themselves in political, religious, social, and economic spheres.  They should understand the significance and vitality of social organizations ranging from groups to institutions, and the role of the individual within social environments.

GRADING: Student performance is calculated using the following instruments.  Each instrument is given a percentage weight towards the final grade in the course.  Grades are assigned on the basis of a grade distribution where the average grade is in the C to C+ range.  In essence grades are curved. 

QUIZZES:  Quizzes will be given every Friday with the exception of test days.  They are designed to keep students current with the readings.   The quizzes will consist of five short answer questions dealing with reading assignments and lecture materials. There will be no make up for quizzes.  However your lowest quiz grade will be dropped.  If you miss a quiz, it will be considered the one to be dropped.

HOMEWORK:  At the discretion of the instructor, students will be assigned homework.   Homework will take the form of either analytical problem solving or open-ended questions.  These assignments are to be completed individually by each student; however, students are encouraged to work together.  Homework will be announce in class and will be available on the course’s webpage located in the reading list (see below).  As with quizzes, the lowest homework grade will be dropped, thus no late assignments will be accepted.

EXAMS: Three midterm exams are scheduled during the semester.  They will be given as shown in the reading list.  Exams consist of two sections.  The first section will be multiple choice questions designed to test the breadth of the student's knowledge and assess meeting course objectives.  The second section will be a combination of essay and/or problem solving questions designed to test the depth of the student's understanding of important concepts or issues.  Make-up exams are strongly discouraged, but possible under extraordinary circumstances.  It is the student’s responsibility to inform me BEFORE the exam and be able to provide written documentation should there be a question of the circumstances.

RECOMMENDED STUDY METHODS:  You will have the opportunity at the beginning of each lecture to ask questions.   You are strongly encouraged to review material from the previous lecture.  Experience shows that the best way to review is to copy your class notes into a second notebook as soon as possible after class.  You should add material that you remember from class but were unable to write down at the time.  It is also useful to meticulously draw all the graphs with a ruler making sure you understand the underlying concepts.  This will reinforce what you have learned, and more importantly, make clear what you do not understand.  You will then be able to ask questions in the next class period or during office hours.  The old adage is true, the best way to learn is to teach.  Teach yourself and you will learn.

ATTENDANCE POLICY:  While attendance is not mandatory, it is highly recommended since students will be evaluated on both lecture and reading materials.  Class participation is strongly encouraged.

ACADEMIC HONESTY:  Academic dishonesty, in particular plagiarism (submitting another person's work, in whole or in part, as your own), or cheating on quizzes or exams will not be tolerated.  Students will be subject to disciplinary action as outlined in the Student Rights and Responsibilities section of the 2007-2009 USI Bulletin.  The student will receive an "F" grade in the course and may be dismissed from the University if found guilty.

DISABILITY SERVICES:  USI students with disabilities can receive services through the University Counseling Center.  More information is available from the Counseling Center, OC 1051 or phone 464-1867.

READINGS:    The student is required to read all relevant material PRIOR to its being covered in class.  By using the following readings list the student should know what is currently being covered in class.  The student will have prior notification should lectures deviate from the list.  We will attempt to complete all the topics on this reading list; however, the instructor retains the right to make changes as necessary.