UMUC-Europe Syllabus

An introduction to the problems of unemployment, inflation, and economic growth. Emphasis is on the roles of monetary policy and fiscal policy in determining Macroeconomic policy. The efficacy of controlling wages and prices is analyzed. Students may receive credit for only one of the following courses: ECON 201 or ECON 205.

Course Goals/Objectives:

After successfully completing this course, the student will be able to: * describe an economic way of thinking * discuss and measure economic variables * apply macroeconomic theory to the problems of price stability, full employment, and economic growth * describe monetary tools and policies * discuss the determinants of economic growth * explain international trade and finance Cross Curricular Initiatives In addition to these learning objectives, this course also concentrates on UMUC's cross-curriculum initiatives, detailed below, designed to help UMUC students build skills to enhance their careers and overall effectiveness in their employment. Effective writing: There are numerous writing assignments throughout the semester. Those assignments are expected to reflect appropriate professional writing skills. That is, they will be evaluated on the basis of grammar, sentence structure, spelling, and overall sound writing principles. At least 10 percent of your grade on each writing assignment will be based on your proficiency in expressing yourself in writing. Information literacy: You will be expected to demonstrate proficiency at research activity through the library and use of online sources. Globalization: An important outcome of this course will be the realization that macroeconomic principles apply to global situations. Computerization: The computer has virtually altered the way macroeconomic research is conducted. This course will emphasize the increasing use of the computer in macroeconomics. Historical Perspective: This course will integrate the historical development of theory to provide the student with a context for current theories and practice. Civic Responsibility: Ethical behavior and role of macroeconomics in society will be explored in this course.

Course Introduction:

This class is concerned with economic method and the fruits of that method. We will start with a description of the tools of economics, such as basic definitions, science, logic, and some math. The tools will be discussed in sufficient detail for students to acquire a good background to continue with the class. Your study of economics will then move into a brief excursion into the basic schools of economic thought. Economists make different assumptions about the "way things are" and they use different tools to analyze the economy. Not surprisingly, they come to different conclusions. This section will provide you with some ways to think critically about economics and the economy. We will learn about classical, Keynesian, monetarist, and supply-side schools of thought. Applying the tools, we will learn how income and employment in the economy are determined. This is a large question, and there are many parts to the answer. We need to know what the various definitions of income are, and examine the role of financial and political institutions. Lastly, we will study international economics. This section will put the question of income determination into a larger context. The course will cover a great deal of information, but the other important thing to be gotten from the course is an understanding of the way economists think about problems. The facts and theories change over time, but the way economists reason has remained fairly stable, and has resulted in all the facts and theories.

Grading Information and Criteria:

A = 90-100% B = 80-89% C = 70-79% D = 60-69% F = below 60% Midterm Exam: 25% Final Exam: 25% Textbook Assignments: 25% Written Assignment: 25%

Other Information:

The student is responsible for all material assigned in the text as well as material covered only in the classroom. In case of a marginal grade, class participation will be used. In case the classes are canceled on an exam date, the exam will be administered in the following class. Make-Up Policy: If you are ill or must be out of town during an exam, you must make prior arrangements concerning the exam or you will receive a zero on that exam. The professor reserves the right to change the format and level of difficulty of the make-up exam. Written Assignment: A short research paper and presentation is required. The paper must be five to six single-spaced typewritten pages. Since effective communication is an important component of success in the business world, papers with poor grammar and spelling errors will lose credit. Also, late papers will be reduced by one letter grade. Please refer to Guide to Research and Writing (University of Maryland University College, 1998), pp. 100-102 for grading criteria. Additional information is provided below. Attendance Policy: The study of economics is cumulative in the sense that concepts learned are applied in subsequent classes. Students should read the assigned chapters prior to coming to class and be prepared to discuss the assigned material in class. The nature of the material is such that if you don't attend class regularly, you will have difficulty passing.

Project Descriptions:

You are to pick a macroeconomics subject from the index of your textbook, and write a brief (5-6 pages) research paper on the subject. You must use the Web and other sources (like textbooks, journals, newspapers...) for information. You MUST use at least five sources and at least one MUST be a Web source. The information in your text on your topic is only a starting point. The paper MUST be new information on the topic. This is a RESEARCH paper, not a repeat of what is in the text. It should be typed (make it pretty) and you MUST use standard bibliographic form (use any style sheet you like). Footnotes are required. (You may use endnotes instead). This paper is an individual effort. Everyone has to do their own. I do not mind at all if you share ideas, but ultimately, one product per person. Look at the Course Schedule to find the date the term paper topic is due. I ask for this information to help where I can in referring you to information. I also help students narrow the topic or expand it where appropriate. So in the meantime you should go through the index of the textbook and come up with a topic that looks interesting to you. Don't ask me for a topic. I want you to choose something that you would like to learn more about.

Academic Policies:

Cases of plagiarism are handled consistent with current UMUC guidelines. See the UMUC policies at the following URL: http://www.umuc.edu/policy/

Course Schedule:

Week 1 Chapter 1 Limits, Alternatives, and Choices Chapter 1 Appendix Graphs and Their Meaning Chapter 2 The Market System and the Circular Flow Chapter 3 Demand, Supply, and Market Equilibrium Week 2 Chapter 4 The U.S. Economy: Private and Public Sectors Chapter 5 The United States in the Global Economy Week 3 Chapter 6 Measuring Domestic Output and National Income Chapter 7 Introduction to Economic Growth and Instability Chapter 8 Basic Macroeconomic Relationships Week 4 Chapter 9 The Aggregate Expenditures Model Midterm Exam (Chapter 1 – 8) Week 5 Chapter 10 Aggregate Demand and Aggregate Supply Chapter 11 Fiscal Policy, Deficits, and Debt Week 6 Chapter 12 Money and Banking Chapter 13 Money Creation Chapter 14 Interest Rates and Monetary Policy Week 7 Chapter 17 Disputes over Macro Theory and Policy Chapter 18 International Trade Week 8 Chapter 19 Exchange Rates, the Balance of Payments, and Trade Deficits Final Exam (Comprehensive with emphasis on Chapters 9 – 14 and 17 – 19).