Economics 101: Principles of Macroeconomics
M W F 11:00-12:00 p.m., SH 105
Instructor Michael Gale
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Office hours and Location: Monday 12:00-1:30 p.m and Wednesday 1:45-3:15 p.m or by
appointment in NH 320.
Instructor’s email: mgale@rohan.sdsu.edu
Text: PRINCIPLES OF MACROECONOMICS California edition with Norton Smartwork.
ISBN 9780393250008
Coppack, Lee, and G. Dirk Mateer. Principles of Macroeconomics.
*Note: The book itself is not a mandatory text, however it is imperative that you purchase the
online supplement. The online component is mandatory in class performance.
Learning outcomes: This course is intended to introduce the principles of economic analysis,
economic institutions, and issues of public policy. Emphasis on macroanalaysis including
national income analysis, money and banking, business cycles and economic stabilization.
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Identify the source of comparative advantage that drive trade
Rationally analyze decisions using the cost-benefit principle taking into account both explicit and
opportunity costs and thinking at the margin
Articulate how changes to supply and demand affect the market price and quantity of a particular
good or service
Understand and intelligently discuss how the national economy works and see the reasons (or
lack of good reasons!) for macroeconomic policy proposals. Understanding this will help you
judge what policies you as an informed member of society and participant in the economy, will or
will not support.
Know the definitions of and how to calculate various macroeconomic variables such as GDP, the
CPI, the unemployment rate, and the rate of inflation.
Discuss the usefulness and limitation of macroeconomic aggregates such as GDP and CPI
inflation
Identify and define the different types of unemployment including frictional, cyclical, and
structural unemployment.
Differentiate between and explain the effectiveness of fiscal and monetary policy
Understand the distinction between real and nominal values.
Be able to distinguish between short and long run effects, with a particular emphasis on how
economic policy will affect the macroeconomy in both the short and long run.
Distinguish between the Classical and Keynesian views on Macroeconomics and Economic
Policy
Identify the demand-side and supply side policies to increase economic growth and the limitation
of each
Derive the link between government budget deficits and private investment
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Discuss the importance of a Central Bank and the banking system in general to the monetary
system
Reconstruct the series of events that led to the current financial crisis
Assess the effectiveness of the various fiscal and monetary policies implemented to alleviate the
global economic recession.
Debate the arguments for and against a national sales tax, privatizing social security, and national
health care.
Identify the causes and effects of trade deficits.
Discuss the merits and costs of foreign investment.
Compute exchange rates and interpret the impact of appreciations and depreciations on different
sectors of the economy.
Attendance: Attendance will not be taken for this course, as it is not mandatory. However, bear
in mind that class lectures and discussions will prove to be useful resources in the preparation for
your exams.
Blackboard: This course has a dedicated blackboard site which you should have access to. To
obtain access to blackboard, go to http://blackboard.sdsu.edu and login by entering your red id
and password (the same one you use for WebPortal). Please let me know if you do not have
access to the site as soon as possible.
Exams: There will be three midterms and one final during the semester. The dates of the exams
are noted in the table below. They will all be held in the classroom and it is imperative that you
arrive on time, as you only have the scheduled class period for the test. The midterms are NOT
cumulative. No makeup exams will be offered. If you do miss one of the midterms, then the final
becomes mandatory and the weight of the missed exam will be added to the final. If a student
takes all three midterms and does not take the final, then each midterm will be worth 25% of the
student's grade, with homework counting for the remaining 25%. If a student takes all three
midterms and does take the final, then the three midterms and the final will each be worth 20%
of the student's grade, with homework counting as the remaining 20%. Finally, if a student
misses a midterm, then final will count for 40% of the grade, the two midterms the student did
complete will be 20%, and homework will fill out the remaining 20%
Exams
Exam
Exam #1
Exam #2
Exam #3
Final Exam
Chapters Covered
** Subject to Change **
1-5
6-10
11, 12, 13, 18, 20
1-13, 18, 20
Date of Examination
September 26th
October 31st
December 10th
December 15th 10:30-12:30 In
the same classroom
PLEASE NOTE: THERE ARE NO MAKE-UP EXAMS. TAKE THE TESTS ON THE DAY THAT THEY ARE
GIVEN. THERE ARE NO DROPPED EXAMS. THERE ARE NO EXCEPTIONS TO THESE OR ANY OTHER
RULES LISTED IN THE SYLLABUS.
Homework:
We will be utilizing the online homework program, Norton Smartwork.
Each assignment will be posted at least a week in advance of the due date and will
correspond to the material discussed in class. You will have the opportunity to attempt
each assignment twice before your grade is recorded. The homework on Norton
Smartwork is intended to be a fair way for you to improve your grade while keeping up
with the course material. Economics is very much a cumulative discipline and if you fall
behind, you'll have a difficult time catching up. Completing the Connect homework on
time is a good way to make sure you don't fall behind.
Grading
Grades will be based on the following allocation:
Homework Assignments
Exam #1
Exam #2
Exam #3
Final Exam
20%
20%
20%
20%
20%
Due by Sunday by Midnight
September 26, 2014
October 31, 2014
December 10, 2014
December 15, 2014
Academic Integrity: Academic integrity is one of the fundamental principles of a university
community. San Diego State University expects the highest standards of academic honesty from
all students. Violations of academic integrity include the following: (1) unauthorized assistance
on an examination, (2) falsification or invention of data, (3) unauthorized collaboration on an
academic exercise, (4) plagiarism, (5) misappropriation of research materials, (6) unauthorized
access of an instructor’s files or computer account, and (7) any other serious violation of
academic integrity as established by the instructor. If your academic integrity is not maintained
on a test or assignment, you will automatically receive an F in the class and you will be reported
to the Academic Affairs Office, in accordance with SDSU academic integrity policy. Penalties
can be severe. More specific information is available in the SDSU Bulletin, both in print and online at http://studentaffairs.sdsu.edu/SRR/academics1.html
Students with Disabilities: If you are a student with a disability and believe you will need
accommodations for this class, it is your responsibility to contact Student Disability Services at
(619) 594-6473 or http://go.sdsu.edu/student_affairs/sds/Default.aspx . To avoid any delay in the
receipt of your accommodations, you should contact Student Disability Services as soon as
possible. Please note that accommodations are not retroactive, and that I cannot provide
accommodations based upon disability until I have received an accommodation letter from
Student Disability Services. Your cooperation is appreciated.
Course Schedule
*This schedule is tentative and may be modified at the instructor’s discretion.
Dates
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
Week 14
Week 15
Topic
The Five Foundations of
Economics
Model Building and Gains from
Trade
The Markets at work: Supply
and Demand
Price Controls
The Efficiency of Markets and
the Cost of Taxation
Introduction to Macroeconomics
and Gross Domestic Product
Unemployment
The Price Level and Inflation
Saving, Interest Rates, and
Market for Loanable Funds
Financial Markets and Securities
Economic Growth and the
Wealth of Nations
Growth Theory
Aggregate Demand-Aggregate
Supply Model
Monetary Policy
International Finance
Reading
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 18
Chapter 20