Syllabus, Econ 2105: Principles of Macroeconomics

Prerequisites: Math 1111 College Algebra

Catalog Description: ECON 2105 analyzes the overall performance of economic systems including output and employment levels, inflation, economic growth, international finance, and the effects of monetary and fiscal policies.

Course Objective: The goal of ECON 2105 is to develop a framework which the student may use to analyze the overall behavior of a modern mixed capitalist economy and its international interactions. This framework introduces the student to the economic way of thinking about the macro-level forces at work in society which shape economic performance and guide economic policy. Performance and policy then feed back to influence the business and social environment.

Method of Instruction: ECON 2105 is taught through a combination of lecture, discussion, homework and examinations. Class interaction allows the students to discover the strengths and weaknesses of alternative policy recommendations.

Text and Other Materials Required: Economics, first edition, by Paul Krugman and Robin Wells. Website: http://bcs.worthpublishers.com/krugmanwells_econ/default.asp

Please remember that all university regulations, deadlines, and policies must be observed. In particular, students are expected to follow the GSU “Policy on Academic Honesty” (Section 409 of the Georgia State University Faculty Handbook). Also, on some date after the mid-point of the course (a date set by the Provost), students on the grade rolls but no longer taking the class will be given a grade of WF, and the last day of class that the student attended or turned in an assignment will be reported to the GSU administration.

Course Learning Outcomes

The student should be able to:

1. understand and describe the concepts and measurement of gross domestic product, unemployment, and inflation.
2. understand and describe the difference between business cycles and economic growth and the factors that contribute to each.
3. understand and describe the concept of Macroeconomic Equilibrium.
4. understand and describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and long-run.
5. understand and describe the multiplier concept, how it is computed, and its qualifications and limitations.
6. understand and describe the concepts, tools, and implementation of fiscal policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity.
7. understand and describe the concepts, tools, and implementation of monetary policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity.
8. understand and describe the essential differences that separate and distinguish the Classical and Keynesian Schools in macroeconomics.
9. understand and describe the arguments pro and con for a policy of laissez-faire versus government activism in the management of macroeconomic policies.
10. understand and describe the concepts of Comparative Advantage, balance of payments and its components, and the determinants of exchange rates.

The course outline below provides a general plan for the course; deviations may be necessary.