ECON 202

PRINCIPLES OF MACROECONOMICS

Winter 2002

Instructor: Dr. Bob Carbaugh

Office: Shaw-Smyser 428

Telephone: Office: 963-3443 Home: 962-5871

Email: carbaugh@cwu.edu

Web Page: www.cwu.edu/~carbaugh/

Office Hours: 10:00 - 10:50 a.m., Monday through Friday

COURSE OBJECTIVES

This course will provide you with the basic economic literacy to be informed citizens in today’s world. Among the topics investigated in this course are:

1. Introduction to economics and the problem of scarcity

2. National income, employment, and fiscal policy

3. Money, banking, and monetary policy

4. Problems and controversies in macroeconomics

5. International economics and the world economy

COURSE OUTCOMES

The Principles of Macroeconomics course will encourage student development of:

1. Critical thinking skills

2. Use of quantitative analysis and graphical analysis

3. Application of economic theory to contemporary policy issues.

READINGS

1. C. McConnell and S. Brue, Economics, 2002.

2. W. Walstad and R. Bingham, Study Guide to Accompany Economics, 2002.

3. The Wall Street Journal

COURSE GRADE

1. Three midterm exams. . . . . . . . . . . . . . . . . . ......... 300 points

2. Three announced quizzes . . . . . . . . . . . . . . .......... 100 points

3. Optional final exam . . . . . . . . . . . . . . . . . . . . ......... 200 points

COURSE OUTLINE

McConnell-Brue Walstad-Bingham

Topic* Text Chapter Study Guide Chapter

Economic problems and production possibilities................................................ 2................................ 2

Mixed economy and public finance 5, 31 (618-626) 5

National income accounting and the price level 7 7

Economic growth and the new economy 17 17

Business cycles, unemployment, and inflation 8 8

Aggregate expenditures model 9 9

---- TEST #1 ----

Multiplier, net exports, and government 10 10

Aggregate demand and aggregate supply 11 11

Fiscal policy 12 12

Budget deficits and the public debt 18 18

Money and banking 13 13

----TEST #2 -----

How banks and thrifts create money 14 14

Federal Reserve System and monetary policy 15 15

Extending the analysis of aggregate supply 16 16

Disputes over macro theory and policy 19 19

International economics 6, 37, 38 6, 37, 38

----- TEST #3 -----

*Some topics may have to be eliminated or condensed, as time permits.