1

PrinciplesofMacroeconomicsSaddlebackCollege‐‐Economics2(Spring2011)

Ticket#10650

Professor:NandoGuerraDayandTime:Thursdaysfrom7‐9:50PMClassLocation:BGS327Office:BGS311Email:fguerra@saddleback.eduOfficeHours:ByappointmentPhone:949‐582‐4900ext.3114I.AbouttheCourse:WhatisEconomics?WhatisMacroeconomics?Economicsisthestudyofhowpeoplechoosetouseresources.Resourcesincludethetimeandtalentpeoplehaveavailable,theland,buildings,equipment,andothertoolsonhand,andtheknowledgeofhowtocombinethemtocreateusefulproductsandservices.

Inshort,economicsincludesthestudyoflabor,land,andinvestments,ofmoney,income,andproduction,andoftaxesandgovernmentexpenditures.Economistsseektomeasurewell‐being,tolearnhowwell‐beingmayincreaseovertime,andtoevaluatethewell‐beingoftherichandthepoor.

Althoughthebehaviorofindividualsisimportant,economicsalsoaddressesthecollectivebehaviorofbusinessesandindustries,governmentsandcountries,andtheglobeasawhole.Microeconomicsstartsbythinkingabouthowindividualsmakedecisions.Macroeconomicsconsidersaggregateoutcomes.Macroeconomics(fromGreekprefix"macr(o)‐"meaning"large"+"economics")isabranchofeconomicsdealingwiththeperformance,structure,behavioranddecision‐makingoftheentireeconomy.Thisincludesanational,regional,orglobaleconomy.MacroeconomistsstudyaggregatedindicatorssuchasGDP,unemploymentrates,andpriceindicestounderstandhowthewholeeconomyfunctions.Macroeconomistsdevelopmodelsthatexplaintherelationshipbetweensuchfactorsasnationalincome,output,consumption,unemployment,inflation,savings,investment,internationaltradeandinternationalfinance.Incontrast,microeconomicsisprimarilyfocusedontheactionsofindividualagents,suchasfirmsandconsumers,andhowtheirbehaviordeterminespricesandquantitiesinspecificmarkets.

2

II.RequiredTextbook:

TimothyTaylor,PrinciplesofMacroeconomics,2ndEdition,TextbookMedia,2011(ISBN1‐930789‐25‐5)

III.RecommendedBooksandotherReadings:

EconomicsExplained,RobertHeilbronerandLesterThurow HowMarketsFail,JohnCassidy The21stCenturyEconomy,ABeginner’sGuide,Randy‐CharlesEpping TheLittleBookofEconomics,GregIp TheEconomist,BloombergBusinessWeek&ForeignPolicymagazines TheFinancialTimesandTheNewYorkTimes,onlineversions,Business,

World,OpinionandCommentSections

IV.AdditionalRecommendedCourseResources:

RoubiniGlobalEconomicswebsite ConfessionsofanEconomicHitman,JohnPerkins DanielYergenandJosephStanislaw,TheCommandingHeights:TheBattle

fortheWorldEconomy,2002edition,websiteandPBSfilm JohnR.Talbott,Obamanomics,SevenStories,2008 GPS:GlobalPublicSquare,withFareedZakaria,programonCNN

V.ExpertsintheFieldofEconomics(MoreResources)Lookforarticles,essays,editorials,books,andinterviewsfromtheseexpertsinEconomicsandInternationalEconomics:

NourielRoubini,MarkZandi,JosephStiglitz,PaulKrugman,RaghuramRajan,NassimNicholasTaleb,J.BradfordDeLong,KennethRogoff,DaniRodrik,JeffreySachsandRobertSkidelsky

VI.StudentResponsibilities:Attendance–Studentsareresponsibleforattendingallclassmeetings.Youcannotbenefitfromclassifyouarenothere.Ifyoumissclassyouwillhavetoworkhardertolearnandrememberthematerial,yourunderstandingwillbeincomplete,andyouwilllikelyperformmorepoorlyonthequizzesandexams.Ifyoumissmorethanoneclassyoumustprovideavalidexcusewhichincludesdocumentedmedicalproblemsandotheremergencies.Youmayinformmeinpersonorviaemail.Excessiveabsencesfromclasswillautomaticallyresultinalowerfinalgraderegardlessofyourperformanceongradedassignments.Donotcometoclasslateandallcellphonesmustbeturnedoff.Itisyourexclusiveresponsibilitytosubmita

3

dropcardtoadmissionsandrecords.Failuretodosowillresultinan“F”gradeforthecourse.AcademicHonesty–StudentsareexpectedtocomplywiththeAcademicHonorCodeasstatedinthe2010‐2011SaddlebackCollegeCatalogaswellastheStudentCodeofConduct.Pleaseseemeifyouwouldlikeacopyofthesepolicies.Theinstructorreservestherighttodetermineacademicrepercussionsforfailingtocomplywitheitherofthesepolicies.VII.StudentResources:Pleasevisitthefollowinglinkforinformationregardingstudentresources:http://www.saddleback.edu/sbs/Student_Resources.htmlVIII.CourseStructure,RequirementsandGrades:Classmeetsroughlythreehoursonceaweek.Theformatwillincludeadiscussionofweeklycurrentevents,lectures,discussionofcoursereadings,andfilms.Itisabsolutelycriticalthatstudentsarriveateachclassmeetinghavingcompletedtheassignedreading.Thecoursewillhaveamidtermandfinalexam.Theexamswillbebasedonlecturesandreadings.Inaddition,thiscoursewillincludequizzes.Gradingwillbedeterminedasfollows: Attendance:5%

Quizzes:30% MidtermExam:30% FinalExam:35% ExtraCredit:TBDQuizzesTheywillfocusonthekeytermsandconceptsfromeachchapter.Quizzeswillbemultiplechoice(MC).MidtermandFinalExamExamswillbebasedonreadingsandlectures.TheywillincludeMCquestionsandshortwrittenresponsesalongwithlongessayquestions.AttendanceClassattendanceisabsolutelyessentialandmustmeettheSaddlebackCollegerequirements.Inaddition,attendancewillbepartofyourgrade.

4

IX.ImportantDates:FirstClassMeeting:Thursday,January13,2011AddwithoutInstructorPermissionby:Wednesday,January12,2011DropwithRefundby:Sunday,January23,2011ElectPass/NoPassby:Tuesday,February15,2011Dropwithout“W”Gradeby:Tuesday,February15,2011Dropwith“W”Gradeby:Thursday,April7,2011X.TentativeLectureTopicsandReadingSchedule:Thefollowingcalendarcouldpossiblybealteredinsomewaysandsupplementedwithadditionalreadingsastheybecomeavailable.Week1Thursday,January13–IntroductionandOverviewofCourse

Introducemyselfandcourse,introductions,reviewsyllabus,introduceclassthemes,reviewtext,discussexpectations,discussreadings,quizzes,andexams,discusscurrentevents

Chapter1,TheInterconnectedEconomy PossiblystartChapter2

Week2Thursday,January20–ChoiceinaWorldofScarcityandEconomicHistory

Discussweeklycurrentevents Chapter2andsomeHistoryofEconomicThought PossiblyprovideadditionalreadingsforWeek3(TBD)

Week3Thursday,January27–TheFoundationofEconomics–SupplyandDemand

Discussweeklycurrentevents Chapter4 ProvideadditionalreadingsforWeek4(TBD)

5

Week4Thursday,February3–InternationalTradeandGlobalization

FirstQuiz Discussweeklycurrentevents Chapter3andChapter6 DiscussadditionalreadingsandCommandingHeightswebsite ProvideadditionalreadingsforWeek5(TBD)

Week5Thursday,February10–TheMacroeconomicPerspective

Discussweeklycurrentevents Discussadditionalreadings Chapter21

Week6Thursday,February17–EconomicGrowth

SecondQuiz Discussweeklycurrentevents Chapter22 DiscusstheissueswithGDPasasourceofmeasurement

Week7Thursday,February24–Unemployment

Discussweeklycurrentevents Chapter23 PossibleprovideadditionalreadingsforWeek8(TBD)

Week8Thursday,March3–Inflation

Discussweeklycurrentevents Chapter24 MidtermReviewandclassdiscussion

6

Week9Thursday,March10–Midterm

Midterm Discussweeklycurrentevents ProvideadditionalreadingsforWeek11(TBD)

Week10Thursday,March17–SpringBreakWeek

BeSafeandHaveaGreatTimeWeek11Thursday,March24–TheBalanceofTrade

Discussweeklycurrentevents Chapter25 PossiblywatchTheCrash(Frontline)(TBD) PossiblyprovideadditionalreadingsforWeek12(TBD)

Week12Thursday,March31–TheAggregateSupply‐AggregateDemandModel

Discussweeklycurrentevents Chapter26 ClassDiscussionandpossibleprovideadditionalreadingsforWeek13(TBD)

Week13Thursday,April7–TheKeynesianPerspective

ThirdQuiz Discussweeklycurrentevents Chapter27 FocusonJohnKeynes ProvideadditionalreadingsforWeek14(TBD)

7

Week14Thursday,April14–TheNeoclassicalPerspective

Discussweeklycurrentevents Chapter28 ProvideadditionalreadingsforWeek15(TBD)

Week15Thursday,April21–MoneyandBanks

FourthQuiz Discussweeklycurrentevents Chapter29 ProvideadditionalreadingsforWeek16(TBD)

Week16Thursday,April28–MonetaryPolicyandBankRegulation

Discussweeklycurrentevents Chapter30

Week17Thursday,May5–ExchangeRatesandInternationalCapitalFlows

Discussweeklycurrentevents Chapter31

Week18Thursday,May12–GovernmentBudgetsandFiscalPolicy

Discussweeklycurrentevents Chapter32 FinalReview&Discussion Ifnecessary,scheduleanadditionalfinalreviewsession

Week19Thursday,May19–7:30PM–Final

Final