Macroeconomics

Topic Overview

• microeconomics vs macroeconomics

• how societies make choices in the face of scarcity

• demand, supply, and equilibrium in markets for goods and services

• demand and supply in particular markets (labor, financial)

• the market system as an efficient mechanism for information

• the tradeoff between economic output and environmental protection

• why the private sector underinvests in innovation

• poverty and economic inequality

• measuring the size of the economy: gross domestic product

• sources of long-run economic growth

• unemployment in the short run and long run

• inflation in the short run and long run

• aggregate demand/aggregate supply model of business cycles

• the Keynesian perspective vs the neoclassical perspective

• macroeconomic effects of exchange rates

• government budgets and fiscal policy

• effect of government borrowing

Learning Outcomes

After taking this course, students will be able to:

• Explain the difference between microeconomics and macroeconomics.

• Describe the problem of choice in the presence of scarcity.

• Describe and illustrate market equilibrium.

• Describe and illustrate labor market equilibrium and disequilibrium.

• Explain the tradeoff between growth and environmental protection.

• Explain and give examples of important externalities.

• Show how to measure economic inequality and poverty.

• Explain how to measure the size of the economy.

• Describe the causes of unemployment in the short run and long run.

• Describe the causes of inflation in the short run and long run.

• Use the aggregate demand/aggregate supply framework to explain the Keynesian perspective.

• Use the aggregate demand/aggregate supply framework to explain the Neoclassical perspective.

• Use the aggregate demand/aggregate supply framework to illustrate the effects of monetary and fiscal policy actions.

• Describe the macroeconomic effects of exchange rates movements.

• Describe long-run and short-run effects of government borrowing.

Prerequisites

There are no college-level prerequisites for this course. This course does not assume prior exposure to economics. However, it does assume a real interest in learning economics. In order to master the content of this course, you will need:

• mastery of basic algebra and interest in using it.

• commitment to critical thinking and analytical reasoning.

• willingness to learn a new vocabulary for describing the world.

• commitment to staying current with the required reading.

• interest in developing abstract models that are helpful when thinking about real-world social phenomena.

Communication

This class will use Canvas. Look there for the syllabus, lecture supplements, and assignments. Canvas announcements are sent by email; students must monitor these announcements and Canvas Conversations (Inbox). Students should also subscribe to the Canvas Discussions. In online interactions, all students are expected to adhere to basic etiquette: be respectful, and quote appropriately.

Classroom Policies (IRW)

The following policies apply to in-person meetings only.

Masks:

Be sure to follow the AU mask guidelines. These are updated on a regular basis, in response to local conditions. Use a high-quality mask (e.g., KN95). Surgical masks are not adequate. When wearing a mask, ensure that it fits correctly. The mask must be snug over both the nose and mouth.

Connected devices:

As a courtesy to other students, do not browse the web or check your email during class. Such activities distract others and reduce your ability to contribute to discussions. In addition, there is evidence that students believe themselves capable of productive multitasking but in fact are not (May and Elder, 2018).

Cell phones:

Please silence your phone before entering the classroom. (E.g., put it on vibrate, or turn it off.) Place it out of sight in a pocket or bag (and not on your desk). If you need to make or take a call, you may quietly leave the classroom. (Please sit near the door if you anticipate such a need.)

Computers:

You may use a computer to take notes or do other course-relevant activity. However, be aware that research indicates that using a computer to take notes can hinder learning (Sana, Weston, Cepeda 2013). This appears to be due to the distraction of multitasking.

Homework Policy

Input on Teaching

Near the end of the course, you will have the opportunity to evaluate this class and your learning experience by completing an Input on Teaching from Students (ITS) survey. You are strongly encouraged to fully participate in the ITS process. I especially appreciate written comments that help me to improve and strengthen this course.

Academic Support and Access Center (ASAC) MGC 243, 202-885-3360.

All students may take advantage of the Academic Support and Access Center (ASAC) for individual academic skills, counseling, workshops, tutoring and writing assistance, as well as Supplemental Instruction. All services are free. The services include the Writing Center (first floor of Bender Library), which assists students with academic writing and assignments. The Math/Stat Lab (Myers Building, 202-885-3154) which provides mathematics and statistics tutoring. Additional content tutoring is also available in the ASAC’s Tutoring Lab.

Academic Integrity

Standards of academic conduct are set forth in the University’s Academic Integrity Code. By registering for this course, you have acknowledged your awareness of the Academic Integrity Code and your obligation to become familiar with your rights and responsibilities as defined by the code. Violations of the Academic Integrity Code will not be treated lightly, and disciplinary actions will be taken should violations occur. The standard sanction for violations is failure of the course.

Emergency Preparedness

In the event of a declared pandemic (influenza or other communicable disease), American University will implement a plan for meeting the needs of all members of the university community. Should the university be required to close for a period of time, we are committed to ensuring that all aspects of our educational programs will be delivered to our students. These may include altering and extending the duration of the traditional term schedule to complete essential instruction in the traditional format and/or use of distance instructional methods. Specific strategies will vary from class to class, depending on the format of the course and the timing of the emergency. Faculty will communicate class-specific information to students via AU e-mail and Blackboard. Students are responsible for checking their AU e-mail regularly and keeping themselves informed of emergencies. In the event of a declared pandemic or other emergency, students should refer to the AU Web site (american.edu/emergency) and the AU information line at (202) 885-1100 for general university-wide information, as well as contact their faculty and/or respective dean’s office for course and school/college-specific information.

Sharing of Course Content

Students are not permitted to make visual or audio recordings, including live streaming, of classroom lectures or any class related content, using any type of recording devices (e.g., smart phone, computer, digital recorder, etc.) unless prior permission from the instructor is obtained, and there are no objections from any of the students in the class. If permission is granted, personal use and sharing of recordings and any electronic copies of course materials (e.g., PowerPoints, formulas, lecture notes and any classroom discussions online or otherwise) is limited to the personal use of students registered in the course and for educational purposes only, even after the end of the course.

Exceptions will be made for students who present a signed Letter of Accommodation from the Academic Support and Access Center. See: How Do I Request Accommodations?

http://www.american.edu/ocl/asac/Accommodations.cfm

To supplement the classroom experience, lectures may be audio or video recorded by faculty and made available to students registered for this class. Faculty may record classroom lectures or discussions for pedagogical use, future student reference, or to meet the accommodation needs of students with a documented disability. These recordings are limited to personal use and may not be distributed (fileshare), sold, or posted on social media outlets without the written permission of faculty.

Unauthorized downloading, file sharing, distribution of any part of a recorded lecture or course materials, or using information for purposes other than the student’s own learning may be deemed a violation of American University’s Student Conduct Code and subject to disciplinary action (see Student Conduct Code VI. Prohibited Conduct).