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					Principles of Macroeconomics: ECON 202
Summer II 2006 MTW 6:00-8:15 Room 440
Claudia Williamson
Office 326
Office Hours: MTW 4:00-5:00 or by appointment
Phone: 304-293-7839

Text: Macroeconomics, by Hubbard and O’Brien

Pre-requisite: Econ 201 Principles of Microeconomics

Course Objectives: This course meets the following GEC Objectives

Contemporary Society: Apply knowledge, methods and principles of inquiry to
contemporary problems, ideas and/or values.

Western Culture: Analyze historical, cultural, and/or political issues of a western nation
in an international context.

At the end of the course the student should be able to:

   1. Identify and understand the major macroeconomic issues facing national
      economies such as economic growth and living standards, productivity, recessions
      and expansions, employment and unemployment, and, inflation.

   2. Identify and understand the factors determining important macroeconomic
      variables such as Gross Domestic Product and national income, prices and
      inflation, nominal and real interest rates, actual output and potential output, short
      run and long run output, Consumption, Savings, Investment and Money.

   3. Be familiar with the Federal Reserve System and understand the use of monetary
      policy by the Fed to stabilize the U.S. economy.

   4. Understand the role of fiscal policy especially in the context of the basic
      Keynesian model and Aggregate Demand-Aggregate Supply models.

   5. Understand the economic interdependence between the U.S. and other economies,
      especially in the new environment of global competition.

   6. Be capable of evaluating media reports on current macroeconomic issues facing
      the U.S. economy such as low national savings, large government budget deficits,
      outsourcing, inflation, unemployment, job creation and immigration.
Examinations and Grading Policy:

Hmwk 1:         July 10       6%

Hmwk 2:         July 17       6%

Hmwk 3:         July 19       6%

Mid-Term:       July 24       35%

Hmwk 4:         July 31       6%

Hmwk 5:         August 7      6%

Final:          August 9      35%

Total                         100%

Your grade will be based on 5 homework assignments worth 6 percent each for a total of
30 percent of your final grade. There will be two exams, a mid-term and a final exam,
each worth 35 percent, for a total of 70 percent of your final grade. The final is not
cumulative. The exams will consist of multiple choice questions and problems similar to
homework questions. Homeworks are due at the beginning of class on the scheduled due
date. No exceptions.

Grading Policy:

A        89.5 – 100
B        79.5 – 89.4
C        69.5 – 79.4
D        59.5 – 69.4
F        0.00 – 59.4

There will be no extra credit options.

Make-up and Late Assignment Policy: Missing an exam will only be excused by West
Virginia University excuses. A make-up exam will be arranged outside of class time by
the instructor. Everyday a homework is late, 10 points will be deducted from the
homework grade.

Grades of Incomplete: A grade of incomplete may be given out in case of extreme
unforeseen emergencies, according to my discretion and in accordance with
college/university guidelines. Poor performance during the semester is not a valid reason
for an incomplete.
Attendance Policy: Attendance is not mandatory. Attendance will be taken, but it does
not directly affect your grade. However, it should be noted that class attendance is
strongly correlated with academic success.

Days of Special Concern:
WVU recognizes the diversity of its students and the needs of those who wish to be
absent from class to participate in Days of Special Concern, which are listed in the
Schedule of Courses. You should notify me by email by the end of the second week of
classes or prior to the first Day of Special Concern, whichever is earlier, regarding Day of
Special Concern observances that will affect your attendance. Other than that all students
must abide by the attendance policy as stated above. I will make reasonable
accommodation for tests that you may miss as a result of observing a Day of Special

Statement of Social Justice
West Virginia University is committed to social justice. I concur with that commitment
and expect to foster a nurturing learning environment based upon open communication,
mutual respect, and non-discrimination. Our University does not discriminate on the basis
of race, sex, age, disability, veteran status, religion, sexual orientation, color or national
origin. Any suggestions as to how to further such a positive and open environment in this
class will be appreciated and given serious consideration.

If you are a person with a disability and anticipate needing any type of accommodation in
order to participate in this class, please advise me and make appropriate arrangements
with Disability Services (293-6700).

Policy on Academic Dishonesty:
West Virginia University expects every member of its academic community to share the
historic and traditional commitment to honesty and integrity. Academic dishonesty is
defined to include but is not limited to the following: plagiarism; cheating and dishonest
practices in connection with examinations, papers and projects; forgery,
misrepresentation and fraud. Such behavior will not be tolerated and will be handled
according to university guidelines (please refer to your Student Handbook for details).
Chapters:                                                                 Dates:


Chapter 1: Economics: Foundations and Models                              7/3

Chapter 2: Trade-offs, Comparative Advantage, and the Market System       7/5
              **Homework 1: Ch.1 and 2 Due 7/10**

Chapter 3: Where Prices Come From: The Interaction of Demand and Supply   7/10

Chapter 7: GDP: Measuring Total Production and Income                     7/11

Chapter 8: Unemployment and Inflation                                     7/12
              **Homework 2: Ch 3, 7, and 8 Due 7/17**

Chapter 9: Economic Growth, the Financial System, and Business Cycles     7/17
              **Homework 3: Ch 9 and 10 Due 7/19**

Chapter 10: Long-Run Economic Growth: Sources and Policies                7/18

Chapter 11: Output and Expenditure in the Short Run                       7/19

Mid-Term Exam: Ch. 1, 2, 3, 7, 8, 9, and 10                               7/24

Chapter 12: Aggregate Demand and Aggregate Supply Analysis                7/25

Chapter 13: Money, Banks, and the Federal Reserve System                  7/26
             **Homework 4: Ch. 11, 12, 13 Due 7/31**

Chapter 4: Economic Efficiency, Government Price Setting, and Taxes       7/31

Chapter 14: Monetary Policy                                               8/1

Chapter 15: Fiscal Policy                                                 8/2
               **Homework 5: Ch. 4, 14, and 15 Due 8/7**

Chapter 16: Inflation, Unemployment, and the Federal Reserve System       8/7

Wrap up and review for Final Exam                                         8/8

Final Exam                                                                8/9
Additional Topics: If time permits these topics will also be covered.

Chapter 6: Comparative Advantage and the Gains from International Trade

Chapter 17: Macroeconomics in an Open Economy

Chapter 18: The International Financial System