Course ECO 2301–003: Principples of Macrooeconomics

Instructor Ahmed Alzzahrani

Term Fall 2009
Meetings TR 11:30 a.m. - 12:45 p.m.,
p GR 2.3002

Instructoor’s Contact Information

I
O
Office Phone 469-487-868 84 (cellphonee)
O
Other Phone 972-883-4913 (office)
Offi
fice Location Office Green n Hall, GR 2..822
Emmail Address asa061000@ @utdallas.eduu
[T 10:00 a.m
m. - 11:15 p.m
m.]; [R: 10:000 a.m. – 11:155 p.m.]
O
Office Hours
(or by appoiintment)
Please use my
m UTD emaail address foor communications, and please p feel freee to
Other Information
I
contact me about
a any conncerns you maay have relateed to this classs.
General Course
C Inforrmation
Pre-reqquisites, Co-
The course is self-containned, and doess not have anny pre-requisites; however some
s
requisiites, & other
knowledge off college level algebra is usefful.
restrictions
Principles off Macroeconom mics (3 semesster hours) Ann introduction to theories of the
determinationn of nationall production and income,, interest rates, inflation, and
unemploymennt. Other topiccs include bankking system, thhe balance of payments, economic
growth the material
m that covers the princiiples of econom mics that applyy to an econom my as
Course Description
a whole, particularly the genneral price level, output and income, and innterrelations am mong
sectors of thee economy. Thhe course placces particular emphasis
e on the
t determinannts of
aggregate dem mand and aggrregate supply, anda on monetaary and fiscal policy
p tools thaat can
be used to achhieve particulaar policy objecttives.
By the end off the semester, students are exxpected to learrn the following:
1) the language and terminoology of Macrooeconomics,
2) the basic methodology
m a models off Macroeconom
and mics and the application
a of these
t
models, and
3) problem-soolving skills.
Within this context,
c studennts are expected to understannd measuremennt concepts succh as
gross domesttic product, connsumption, invvestment, unem mployment, infflation, inflatioonary
gap, and receessionary gap. Students are alsoa expected tot demonstratee knowledge of o the
institutional structure
s of thee Federal Reseerve Bank and the monetary policy tools it uses
Learnin
ng Outcomes to stabilize economic
e fluctuuations and prromote long-teerm economic growth, as weell as
the tools of fiscal
f policy annd their impactts on income, employment,
e p
price level, defficits,
and interest rate.
r Basic understanding of foreign
f exchannge markets, baalance of paym ments,
effects of currrency, and apppreciation and depreciation onn a country’s imports
i and expports
are also expected.
For economiccs majors, thiss course will laay the foundattion for continuuation in advaanced
economic anaalysis. For majjors and non-m majors alike, thhis course will give you probblem-
solving and analytical
a skills that should prove
p useful inn various aspeccts of the everryday
decision-makking process and the ability a to form informedd opinions about a
macroeconom mic policies useed by the goveernment.
Requiired Texts &
CoreMacroecconomics w/CoourseTutor, by Gerald W. Stoone, 1st Editioon
Materials
Sugggested Texts,
Book:"The Innstant Econom
mist", [Chapter 1] (Reserved) ; call #13045.
R
Readings, &
SparkCharts: Macroeconommics and/or QuickStudy: Maccroeconomics.
Materials
Lecture notees are posted on WebCT, but b they are not sufficient substitute forr the
Leecture Notes
textbook or inn-class lecturess.
Book:"The Innstant Econom mist" , call #130045.
Reserveed Materials
DVD: "The Standard
S Deviaants: Macro Ecconomics" call #DVD9030.
Course Policies

96-100 A+ 86-89 B+ 76-79 C+ 65-69 D+ 0-49 Fail

Grading (credit)
Criteria 93-95 A 83-85 B 73-75 C 60-64 D
90-92 A- 80-82 B- 70-72 C- 50-59 D-

[04] In-class Exams

60%
(Take Best 3 * 20% each)
Grade [06] Take-home Online Quizzes
30%
Distribution (Take Best 5 * 6% each)
10% Attendance, and Participation :
5% Extra Credit: Short Essays

Attendance and Participation counts for 10% of final grade.

Some topics not covered in the textbook will be introduced in lectures and you will be held
responsible for them on exams. Moreover, experience tells me that students who miss class
do not perform well on exams. Lastly, students are responsible for being aware of any and all
announcements that are made in class.
Class Attendance Good participation includes (but is not limited to) attending class, being prepared for class
& Participation (i.e. doing the reading), attending office hours, making thoughtful comments or other positive
contributions to class.
Bad participation includes (but is not limited to) poor attendance, lack of preparation, not
submitting Chapter Evaluation sheets on due dates, coming to the class very late, or leaving
very early, text messaging, answering your cell phone, reading the newspaper, using your
laptop for purposes other than taking notes, sleeping.
Please note ahead the scheduled dates of the exams and make sure you can attend the exams.
Unless you have a very good reason for missing the exams, no make-up exam will be given
(If you miss one midterm and have no good reason for missing it, you will be given a grade
of zero for that midterm, and method two will be used to calculate your final grade). The only
acceptable reason for missing an exam is your own illness or other family emergencies. If
this applies, please make a xeroxed copy of the "Report of Absence from Exam" form
attached to the online syllabus and fill it in and return it to me. You must also have a signed
Make-up Exams
excuse from your physician in case of illness stating the nature of your illness (a statement
saying that you weren't feeling too well is NOT enough). Your petition will be considered,
but you must submit it as soon as you are back on campus. Any delays will lead to your
petition being turned down. If I accept your petition, a make-up exam will be administered.
Please note that the make-up exam may be entirely different from the original exam. If you
need to take the exam early or elsewhere, you must submit the petition by the deadline given
in class.
Deadlines for assignments will be announced in class. It is your responsibility to take note of
Late Work the deadline. If you miss the deadline, you will be assessed a 10% penalty, there are no
exceptions.
 The Assignment and Calendar Sheet
Economic Foundations for Macroeconomics
Dates Topics Assignments
Aug 20 1. Exploring Economics Ch.1
Aug 25 Appendix: Working With Graphs and Formulas Ch.1
Aug 27 2. Production Economic Growth and Trade Ch.2
Sept 01 3. Supply and Demand Ch.3
Sept 03 Tutorial Problems and Assignment (1)

Macroeconomic Measures
Dates Topics Assignments
Sept 08 4. Market Efficiency, Market Failure, and Government Intervention Ch.4
Sept 10 5. Introduction to Macroeconomics Ch.5
Sept 15 6. Measuring Inflation and Unemployment Ch.6
Sept 17 Tutorial Problems and Assignment (2)

Sept 22 Review
Sept 24 Exam (I)

The Core of Macroeconomics

Dates Topics Assignments
Sept 29 7. Economic Growth Ch.7
Oct 01 8. Keynesian Macroeconomics Ch.8
Oct 06 9. Aggregate Demand and Supply Ch.9
Oct 08 Tutorial Problems and Assignment (3)

Economic Policy
Dates Topics Assignments
Oct 13 10. Fiscal Policy Ch.10
Oct 15 11. The Monetary System Ch.11
Oct 20 12. Monetary Policy Ch.12
Oct 22 Tutorial Problems and Assignment (4)

Oct 27 Review
Oct 29 Exam (II)

Deficits, Debt, and Policy Challenge

Dates Topics Assignments
Nov 03 13. Federal Deficits and Public Debt Ch.13
Nov 05 14. Macroeconomic Policy Challenges Ch.14
Nov 10 Tutorial Problems and Assignment (5)

Open Macroeconomics
Dates Topics Assignments
Nov 12 15. International Trade Ch.15
Nov 17 16. Open Economy Macroeconomics Ch.16
Nov 19 Tutorial Problems and Assignment (6)

Nov 24 Review (III)

Nov 26 Thanksgivings
Dec 01 Exam (III)

Dec 11 Make-up Comprehensive Exam (IV) Optional

Dec 11 Extra Credit Essay Optional
 Extra Credit

One Short Essay Divided into Three Parts

Part (1): Explain: How inflation and unemployment are currently measure in the
US economy (use data graphs and comments on the trend) (2 pages)

Part (2): Synthesize: What combinations of fiscal and/or monetary policies are
recommended to mitigate the problem in Part (1) (use AD/AS graph to
explain your proposal)

Part (2): Evaluate: Construct and solve the simultaneous equation representing of
the real and the monetary sections of the economy, derive the equilibrium
values before and after your suggested policy, and use AD/AS graph to
analyze the results.

Consider the following structure of economy:

C = 25 + 0.75(Y − T )
I = 5 − 0.25(i )
G = 10
T = 20
M S = 80
M D = (Y − i ) P
where is (i) interest rate in percentages, (C) is consumption, (Y) is nominal
GDP, (I) is investment, (G) is government expenditures, (T) is taxes, (MS)
is money supply and (MD) is money demand.
Assuming that the price level is P = 1.

If you need further details please see me in my office hours

Please see the complete online syllabus

 Report of Absence from Exam
Fill out completely, sign and return to the course instructor as soon as possible. Lateness
in turning in the form may affect the acceptance of your petition.
NAME_______________________________________________________________
PHONE________________ADDRESS_____________________________________
EMAIL ADDRESS_____________________________________________________
COURSE NUMBER AND SECTION______________________________________
DATE OF EXAM MISSED______________________________________________
Give specific reason(s) for your absence on the exam date. Give details such as dates of
illness, treatment, etc. and attach your physician's statement.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
READ CAREFULLY AND SIGN
I pledge that all the information contained on this form is true to my best knowledge. I
understand it is my responsibility to take this form to my professor as soon as possible. If
accepted, it is also my responsibility to set up a date for a make-up exam with my
professor before the semester is over. I understand that failure to complete any of the
above will make me ineligible for a make-up exam.
_______________________________ ______________
Signature Date
 Study Suggestions

Chapter Evaluation Sheet

Name : [ ] Date: [ ]
Chapter [ ]; Title: [ ]
STEP 1: Know What You Need to Learn:
What did you learn from this chapter?
What did you find simple to learn in this chapter?, and

What did you find difficult to learn in this chapter? (Be specific)

Optional
Submit the evaluation sheet to the instructor if you need help with specific topic
 1) Bring to the class:
• The Chapter Evaluation Sheet, and
• The Assignment Calendar Sheet
2) Take clear notes and supplement your notes with your readings
• The lecture notes are more advanced presentation of the textbook
materials
• The exams are not limited to the textbook, but also includes lecture
notes
3) Use the Chapter Evaluation Sheet as guidelines for:
• Communicating your understanding with the instructor
• Studying the materials
• Doing the homework/quizzes, and
• Utilizing the office hours
4) Use the Assignment Calendar Sheet to:
• Follow the progression of the lectures and relate it to your study plan
• Record the due date for Chapter Evaluation and Homework
• Record the due date for the short project
5) Register online at
• http://bcs.worthpublishers.com/stone_macro/default.asp to have
access to the online materials and quizzes

Suggested Study Plan

STEP 2: Review the Key Terms √ or ×
STEP 3: Work Through the Chapter Tutorial and Check Your Knowledge √ or ×
STEP 4: Consider the Hints. Tips, and Reminders √ or ×
STEP 5: Do the Homework for the Chapter (Optional)
√ or ×
[It will done in class; it is part of your in class-participation]
STEP 6: Use the ExamPrep to Get Ready for Exams √ or ×
STEP 7: If you have difficulty understanding something take these extra steps:
a) Read the topic from the textbook and the lecture notes √ or ×
b) Use the instructor’s office hours (this is an important educational tool) √ or ×
QUIZ: Do the Online Homework (Required)
√ or ×
[It must be Submitted on time; this is your Take-home Online Homework]

(All the above guidelines and timelines are subject to change

at
the discretion of the instructor)
 Off-campus, out-of-state, and foreign instruction and activities are subject to state
Field Trip
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Policies
activities. Information regarding these rules and regulations may be found at the
Off-Campus
website address http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm.
Instruction &
Additional information is available from the office of the school dean. Below is a
Course Activities
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PO Box 830688
Richardson, Texas 75083-0688
(972) 883-2098 (voice or TTY)
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