1. Resources

Prerequisites: There are no college-level prerequisite courses for Econ 001. However, students are expected to have a basic understanding of graphs, fractions and simple algebra. Note: This course is substantially more advanced than most high school economics courses and has no relation to courses in "consumer economics."

Lecture hours: Section CRN 1331 meets MWF 8:00-8:50 AM in 10 Aliber Hall. Section CRN 1332 meets MWF 9:00-9:50 AM in 10 Aliber Hall.

Contact instructor:

• Office: 319 Aliber Hall
• Telephone and voice mail: 271-3129
• Electronic mail: william.boal@drake.edu
• U.S. mail: College of Business and Public Administration
  Drake University, 2507 University Avenue, Des Moines, Iowa 50311-4505

Office hours: Office hours are a time when you can get help with homework, ask questions about course material, discuss your grade or anything related to this course or economics in general. No appointment is necessary during office hours--just drop by. Bring your slideshow handouts and the textbook, and we will decipher them together. Office hours this semester are posted at the instructor's web page (www.drake.edu/cbpa/econ/boal). If these hours are inconvenient due to schedule conflicts, please call or send email to make a special appointment.

Learning objectives: In this class we learn to interpret economic data and to predict the economic effects of fundamental conditions and government policy using basic economic theory as applied to market economies. In particular, we learn

• to predict how changes in fundamental conditions and government policy affect price and output in individual markets, using the demand-and-supply framework.
• to interpret national accounts data, price indices, and employment data published regularly by U.S. government agencies.
• to predict how a country's long-run economic growth rate and inflation rate are affected by fundamental conditions and government policy, using the framework of the aggregate production function.
• to describe how business cycles in developed countries begin and end, and to identify government monetary and fiscal policies that can aggravate or mitigate them, using Taylor's aggregate demand-inflation framework.
• to identify the effects of international trade and international financial markets on the macroeconomy and macroeconomic policy.

Course resources to purchase:

• Required: John B. Taylor and Akila Weerapana, Principles of Macroeconomics, 6th edition, paperback, South-Western Cengage Learning, 2010, ISBN-13: 978-1-4390-7822-8, ISBN-10: 1-4390-7822-X. Available at University Bookstore.
• Required: Slideshow Handouts for Boal's Econ 1, a course packet. Available at University Bookstore. Bring this packet to class every day.
• Required: A simple calculator for exams. Graphing calculators, calculators with alphabetical keyboards, wireless devices and mobile phones are NOT permitted during exams.
• Recommended: A three-ring binder for your slideshow handouts.

Online resources:

• A Drake email account is required for all students. Course announcements will occasionally be sent to this account, so each student should check it daily.
• A course home page (www.drake.edu/cbpa/econ/boal/001) contains this syllabus, old exams, and homework exercises. All of these, plus a gradesheet updated every few weeks, are also posted on Blackboard (bb.drake.edu). If you have difficulty accessing Blackboard, please contact the HelpDesk at 271-3001.

Tutoring resources:

• Your instructor should be your first resource for questions and help.
• The Economics Tutoring Lab provides free tutoring for students by students in Aliber Hall. The Lab will begin operation about the third week of the semester. Hours and location will be announced at the Economics web site (www.drake.edu/cbpa/econ/tutor.html). Read the textbook before going to the Lab.
• The Math Tutoring Lab (www.drake.edu/mathcs/) can be a useful resource for purely mathematical questions.

Data resources: Three U.S. government agencies calculate and publish most macroeconomic data for the United States. Many other web sites offer macroeconomic data, but these three agencies are the authoritative original sources.

• The Bureau of Economic Analysis (www.bea.doc.gov/), in the Department of Commerce, publishes the National Income and Product Accounts (GDP and its components).
• The Bureau of Labor Statistics (www.bls.gov), in the Department of Labor, publishes data on unemployment and the consumer price index.
• The Federal Reserve Board of Governors (www.federalreserve.gov/), an independent agency, publishes data on interest rates and the money supply. Its Federal Open Market Committee ( www.federalreserve.gov/policy.htm), which sets monetary policy for the United States, publishes its meeting calendar, decisions, and a pre-meeting briefing book on current economic conditions called the Beige Book.

2. Requirements and grading

Course grade: Each exam and homework assignment is graded on a scale from zero to 100. Your overall course score is calculated as a weighted average, using the following formula:

Exams: There will be four hour exams and a final examination. All exams are closed-book, closed-notes. Simple calculators are permitted, but graphing calculators, calculators with alphabetical keyboards, wireless devices and mobile phones are NOT permitted. The nature of the course material is cumulative, so exams may contain material from previous sections of the course. Exam seating is assigned. The final exam counts double and is required--students who do not take the final will not pass the course.

Homework: Assignments are posted on Blackboard (bb.drake.edu) and the course web page ( www.drake.edu/cbpa/econ/boal/001) in PDF format with clearly marked due dates. Print the question sheets, complete them in pen or pencil, and turn them in at class by the due dates. Late homework is not accepted. If your computer is not working, please use one of the computers in Cowles Library. Computer problems are not an acceptable excuse for late homework.

Attendance: Attendance will be taken during classroom activities on randomly-chosen days during the semester. Students will not be marked absent if they present documentation for a valid excuse (see below). The deadline for presenting documentation is the day of the final exam.

Valid excuses: If your own medical emergency, or a serious illness or death in your family causes you to miss class the date a homework exercise is due or an exam is given, you may be given an extension on a homework exercise or a makeup exam. However, you must inform me of the emergency before class (e.g., by phone) and soon afterward submit a written explanation (including date of absence and documentation).

Certain other circumstances are acceptable reasons for missing class. These include religious observance, medical appointment, interview trip, and athletic team trip. Because these circumstances can be predicted, a written explanation including date of absence must be submitted before the date of absence. No extensions for any homework exercises are given in these circumstances--submit exercises early, if necessary.

Disabilities: Any student who has a physical or mental disability that substantially limits his or her ability to perform in this course under normal dicrumstances should contact Student Disability Services, 271-1835, to request any accommodations. Any request must be received and approved (by the instructor, among others) at least one week before the necessary accommodation. All relevant information will be kept strictly confidential.

How to succeed in this course:

• Read the textbook before class.
• Attend every class.
• Work the homework assignments carefully. They will help you prepare for exams, which count for 90 percent of the course grade. (If you simply copy other students' answers, you will not be prepared for exams.)
• Further prepare for exams by working through old exams, posted on Blackboard (bb.drake.edu) and at the course web page (www.drake.edu/cbpa/econ/boal/001/exams.html). Don't look at the answer key until after you have solved each problem.
• If you are doing all this and still having trouble, please ask me for help. Talk to me after class, send email to william.boal@drake.edu, or drop by during my office hours. I am eager to help!

Academic integrity: The CBPA’s Academic Integrity Policy applies to this course. The consequences of violating this policy vary, depending on my evaluation of the severity of the dishonesty. A violation (such as cheating, plagiarism, or fabrication) can result in a grade of zero on the test or assignment, an F for the course grade, or even expulsion from the university. Please read the policy and ask for clarification if necessary.

3. Schedule of lectures, readings, and exams

Part 1: Introduction to Economics

A. Introduction [Aug 22, 24, 26]

- Read Taylor and Weerapana chapter 2 pp. 32-39.

- Bring to class the following handouts: Welcome to Econ 001. The economic perspective on human behavior. Economics as a science. Math review: basic concepts. Math review: percent changes.

B. Production and gains from trade [Aug 29, 31, Sept 2]

- Read Taylor and Weerapana chapter 1.

- Bring to class the following handouts: Production functions. Production possibilities. Comparative advantage. Gains from trade. Institutions that support trade.

C. Demand and supply [Sept 7, 9, 12]

- Read Taylor and Weerapana chapter 3, plus chapter 4 pp. 80-86.

- Bring to class the following handouts: Demand. Supply. Equilibrium. Shifts in demand and supply curves. Price controls.

First exam [Sept 14]

- Prepare by studying old exams on Blackboard (bb.drake.edu) or at www.drake.edu/cbpa/econ/boal/001/exams.html.

- You may bring a simple pocket calculator to the exam. Graphing calculators or calculators with alphabetical keyboards are NOT permitted.

- Exam seating is assigned--please check the projector screen before you sit down.

Part 2: National Income and Product Accounts

A. Overview of macroeconomics [Sept 16]

- Read Taylor and Weerapana chapter 5.

- Bring to class the following handouts: The macroeconomic record: GDP and employment. The Great Depression. The macroeconomic record: inflation and interest rates. Macroeconomic theory and policy.

B. Gross domestic product and its components [Sept 19, 21, 23]

- Read Taylor and Weerapana chapter 6 pp. 142-155 and 162-end.

- Bring to class the following handouts: What is GDP? The spending approach to GDP. Stocks and flows. The production approach to GDP. The income approach to GDP. Income and saving.

C. The price level and inflation [Sept 26, 28]

- Read Taylor and Weerapana chapter 6 pp. 155-162.

- Bring to class the following handouts: Real GDP versus nominal GDP. Measuring inflation. International comparisons of GDP.

Second exam [Sept 30]

- Prepare by studying old exams on Blackboard (bb.drake.edu) or at www.drake.edu/cbpa/econ/boal/001/exams.html.

- You may bring a simple pocket calculator to the exam. Graphing calculators or calculators with alphabetical keyboards are NOT permitted.

- Exam seating is assigned--please check the projector screen before you sit down.

Part 3: Long-Run Economic Growth and Inflation

A. Labor: unemployment and employment [Oct 3,5]

- Read Taylor and Weerapana chapter 8.

- Bring to class the following handouts: Output and the labor force. Measuring the labor force. Who is unemployed? The labor market and unemployment.

B. Capital: the spending allocation model [Oct 7, 10, 12]

- Read Taylor and Weerapana chapter 7.

- Bring to class the following handouts: Output and capital. Measuring investment. The interest rate as an opportunity cost. GDP spending components and the interest rate. How spending components of GDP are determined in the long run. Shifts in nongovernment shares.

C. Technology: productivity and economic growth [Oct 19]

- Read Taylor and Weerapana chapter 9.

- Bring to class the following handouts: The growth model of Thomas Malthus. Measuring technology in economic growth. Technology policy.

D. Money and inflation [Oct 21, 24, 26]

- Read Taylor and Weerapana chapter 10.

- Bring to class the following handouts: Forms and functions of money. Banks. How banks create money. The "quantity equation" for money and inflation. Inflation and unemployment. Why inflation matters.

Third exam [Oct 28]

- Prepare by studying old exams on Blackboard (bb.drake.edu) or at www.drake.edu/cbpa/econ/boal/001/exams.html.

- You may bring a simple pocket calculator to the exam. Graphing calculators or calculators with alphabetical keyboards are NOT permitted.

- Exam seating is assigned--please check the projector screen before you sit down.

Part 4: Short-Run Business Cycles

A. Causes of economic fluctuations [Oct 31]

- Read Taylor and Weerapana chapter 11.

- Bring to class the following handouts: Sticky prices. The consumption function. The Keynesian cross.

B. Keynesian multipliers [Nov 2, 4]

- Read Taylor and Weerapana appendix to chapter 11.

- Bring to class the following handouts: The simple Keynesian multiplier. The Keynesian multiplier and net exports. More Keynesian multipliers. Consumption smoothing and the permanent income hypothesis.

C. Monetary policy rules and aggregate demand [Nov 7]

- Read Taylor and Weerapana chapter 12.

- Bring to class the following handouts: Inflation over the business cycle. How the interest rate affects GDP. How inflation affects the interest rate.

D. Inflation adjustment and business cycles [Nov 9, 11]

- Read Taylor and Weerapana chapter 13.

- Bring to class the following handouts: Inflation adjustment. Classic business cycles triggered by changes in fiscal policy. Classic business cycles triggered by changes in monetary policy. Business cycle from a price shock.

E. Fiscal policy [Nov 14, 16]

- Read Taylor and Weerapana chapter 14.

- Bring to class the following handouts: Budget deficits, budget surpluses, and the debt. Using fiscal policy to tame short-run business cycles. The deficit or surplus over the business cycle. Fiscal policy and long-run growth.

F. Monetary policy [Nov 18, 21]

- Read Taylor and Weerapana chapter 15 pp. 365-383.

- Bring to class the following handouts: Central banks. How the central bank controls the interest rate. Monetary policy rules. What is an "aggressive" monetary policy?

Fourth exam [Nov 28]

- Prepare by studying old exams on Blackboard (bb.drake.edu) or at www.drake.edu/cbpa/econ/boal/001/exams.html.

- You may bring a simple pocket calculator to the exam. Graphing calculators or calculators with alphabetical keyboards are NOT permitted.

- Exam seating is assigned--please check the projector screen before you sit down.

Part 5: The International Economy

A. Economic growth and globalization [Nov 30]

- Read Taylor and Weerapana chapter 17.

- Bring to class the following handouts: Convergence in GDP per capita. Raising growth rates in developing countries.

B. Gains from international trade [Dec 2]

- Read Taylor and Weerapana chapter 18.

- Bring to class the following handouts: Motivations for international trade. Effects of international trade.

C. International finance and macroeconomic policy [Dec 5, 7]

- Read Taylor and Weerapana chapter 15 pp. 383-end.

- Bring to class the following handouts: International accounts. Exchange rate determination. Fixed exchange rates.

D. International trade policy [if time permits]

- Read Taylor and Weerapana chapter 19.

- Bring to class the following handouts: Tariffs. Quotas and voluntary export restraint agreements. Other trade barriers. The politics of reducing trade barriers. Strategies for reducing trade barriers.

Final Exam

Final exams are scheduled by the University's Office of Student Records. The 8:00 section (CRN 1331) will have a final exam on Monday, December 12 from 2:00 to 3:50 PM in the regular classroom. The 9:00 section (CRN 1332) will have a final exam on Wednesday, December 14 from 7:30 to 9:20 AM, also in the regular classroom.

The content of the final exam is comprehensive and includes questions from all parts of the course. Prepare by reviewing the hour exams you have taken already and by studying old final exams posted on Blackboard (bb.drake.edu) or at www.drake.edu/cbpa/econ/boal/001/exams.html.

You may use a simple calculator, but graphing calculators, calculators with alphabetical keyboards, wireless devices and mobile phones are NOT permitted. Seating is assigned--please check the projector screen before you sit down.

[end of syllabus]