Edward J. Deak
Department of Economics
Fairfield University
Fairfield, CT 06430
Phone: 203-254-4000 x2866
Office: Don 327
DrDeak@edwardjdeak.com

Spring 2001
Office Hours
M/W 2:30 -4 pm
Th 1:40 - 2:45 pm

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Economics 11
Economics 12
Economics 125
Economics245
 

Economics 12 -- An Introduction To Macroeconomics
Texts: The Following Books Will Be Used In This Course
  • McConnell, Campbell R. and Stanley L. Brue, Macroeconomics, 14th Ed. New York: McGraw-Hill, 1999.
  • Walstad, William B. and Robert C. Bingham, Study Guide For Macroeconomics, 14th Ed. New York: McGraw-Hill, 1999.
  • Dr. Deak’s “Course In A Binder: EC 12”, 2001-02 Edition, mimeo.
 
Examinations
  • There will be two 100 point intra-term examinations to test your understanding of the material covered during the previous section of the course.
  • There will be three quizzes  worth 100 points in total. The quiz questions will be drawn from the questions in the study guide.  The solution to a number of assigned computer problems may be substituted for quizzes #2 and/or #3. These computer problems will carry a slightly higher weight. The final exam will be comprehensive and worth 200 points.  A missed exam or quiz will require an acceptable and verifiable excuse or a grade of zero will be recorded. There will be no makeup exams or quizzes, except for the final exam. I reserve the right to alter your final grade by up to 1/2 letter grade based upon the quality of your class participation.
Old Exams And Academic Honesty
  • Copies of the essay portion of some old exams are available in the final section of the “binder". The University policy regarding plagiarism and cheating on exams and papers is in full force in this class at all times.
 
Macroeconomic website connections
  • The following web sites contain both current and historical macroeconomic information:
  • www.dismal.com
    www.economy.com
    www.freelunch.com
  • You are expected to check the “dismal” site at least once each week to get information on the most recent data and macro events. From time to time, I will refer you to specific stories on the site. These references and trends in macro behavior revealed at the site will be part of your exam responsibilities.
 
Excel Computer Exercises
  • The Excel computer exercises offer you a valuable educational option in addition to the standard content of this course. Excel is a powerful spreadsheet program with graphic capabilities. You will use excel to solve problems that will not only help you to understand macroeconomic concepts, but that will also teach you the power of the IBM-PC, and the MS-Office software package. Excel problems and operating instructions are in the “Course in a Binder” document.
  • Graded participation in this phase of the course is optional. It will require a sense of adventure, some determination, and an understanding of college level, non-calculus math. A special mandatory excel training class will be scheduled in the Don 148 computer lab. The session will give you hands on experience and show you how to run Excel. Subsequent to this training session, each student must hand in the answers to a specific mandatory exercise as evidence of participation in and mastery of Excel. Failure to hand in this exercise will result in a grade of incomplete in this course.
  • As ongoing support during the semester, three economics lab assistant will be available on the 3rd floor of Donnarumma during designated evening hours. They will be available in the event that you have questions regarding the problems to be solved. This lab assistant can also help you with exam and quiz related questions regarding economic concepts that are not necessarily based on the excel problems. If you choose to participate, you may elect to substitute the solutions to several assigned problems to the in-class quizzes #2 and/or #3. All students must take quiz #1. Computer assignments are due, in class, the same day as the quiz. They carry a slightly greater point weight of 50 points each. The extra 15 points are treated as bonus points towards your final grade in recognition of the additional effort.
  • I urge you to try the excel assignments. They may seem more difficult at first, but the knowledge gained is very rewarding. Please read and be familiar with the introductory pages in the Excel section of the “binder” before you attend the instructional class.
 
Excel Substitute Quiz Assignments
  • QUIZ #2 - PROBLEMS: #1, 2A, 3, AND 4.
  • QUIZ #3 - PROBLEMS: #5, 6, 7, AND 8.

 

   
Readings
 
 
 The following pages contain the reading assignments and the proposed class outline.  You are expected to read the assignment before class and be able to participate intelligently in class discussions. This participation may be a factor in your final grade. Periodically, articles may be added to the list and either distributed in class or placed on reserve in the library.

 
 
 
1.  
The Basic Economic Problem - Wants and Resource Scarcity
  • McConnell and Brue Ch.1, PP. 22-25.
  • Walstad and Bingham - Ch. 1, 2 (Part) 
2.  
Scarcity and Macroeconomic Performance Goals
  • McConnell and Brue - Ch. 8, pp. 368-371, 372-373.
  • Walstad and Bingham - Ch. 8, Ch 18 (Part) 
3.  
Production Possibilities - A Model of Scarcity, Choice, and Growth
  • McConnell and Brue - PP. 25-34
  • Walstad and Bingham - Ch. 2 (Remainder)
4.  
The Circular Flow Model - Economic Growth v. Business Cycles
  • McConnell and Brue - PP. 34-37, 89-91, pp.373-378.
  • Walstad and Bingham – Ch. 5 (Part), Ch.18 (Part)
 5.  
Measuring GDP - The Expenditure And Income Approaches
  • McConnell and Brue - PP. 126-134
  • Walstad and Bingham - CH. 7
  • QUIZ #1 - On the material in meetings 1-4 
6.  
Measuring GDP - Value Added and Welfare Implications of GDP
  • McConnell and Brue - PP. 134-144
7.  
Classical And Marxian Theories Of Business Cycles
  • McConnell and Brue - PP. 172-174
  • Walstad and Bingham - CH. 9
8.  
The Keynesian Macro Model - Consumption and Saving
  • McConnell and Brue - PP. 174-179
9.  
EXAM #1. 
  • (On the material covered in meetings 1-8) 
10.  
Consumption And Saving (Continued)
  • McConnell and Brue - PP. 179-181
11.  
Investment - Investment Demand, Inventory Changes And The Business Cycle 
  • McConnell and Brue - PP. 181-188, 193-195.
12.  
Equilibrium Income - Simple Keynesian Income / Expenditure Model
  • McConnell and Brue - PP. 188-190
13.  
 The Leakages / Injections Approach To Equilibrium Income
  • McConnell and Brue - PP. 190-193
  • QUIZ #2 (On material from Quiz #1 to meeting #12)

 
14.  
Changes In Equilibrium Output - The Multiplier Concept
  • McConnell and Brue - PP. 199-204.
  • Walstad and Bingham - CH. 10.

 
15.  
 Equilibrium v Full Employment - Adding The Government And Foreign Sectors To The Model
  • McConnell and Brue - PP. 204-217.
16.  
The Aggregate Supply and Demand Model -- Restarting the Macro Economy
  • McConnell and Brue - PP. 221-233.
  • Walstad and Bingham - CH. 11.
17.  
AS/AD – Comparison to the Keynesian-cross Model, and an Analysis of Contemporary Macro Events.
  • McConnell and Brue - PP. 233-239.
18.  
 EXAM #2
19.  
FISCAL POLICY IN PRACTICE
  • McConnell and Brue –Ch. 12, pp. 91-96
  • Walstad and Bingham - CH. 12, CH. 5 (PART).
20.  
BUDGET DEFICITS AND THE NATIONAL DEBT
  • McConnell and Brue - CH. 19
  • Walstad and Bingham - CH. 19.
21.  
MONEY, THE U.S. FINANCIAL SYSTEM AND THE ECONOMY
  • McConnell and Brue – Ch. 13
  • Walstad and Bingham - Ch. 13
22.  
MONETARY THEORY - KEYNESIAN VIEW v. THE QUANTITY THEORY
  • McConnell and Brue - PP. Pp. 272-275, 314-318, 353-355
  • Walstad and Bingham - Ch. 15 (Part), Ch. 17 (Part)
23.  
 BANKS AND THE EXPANSION OF THE MONEY SUPPLY
  • McConnell and Brue - CH. 14
  • Walstad and Bingham - CH. 14
24.  
 MONETARY POLICY: TOOLS AND OPERATIONS
  • McConnell and Brue – Ch. 15
  • Walstad and Bingham - CH. 15
25.  
STABILIZATION CONTROVERSIES - POLICY DEBATES.
  • McConnell and Brue - Ch. 17.
  • Walstad and Bingham - Ch. 17.
  • QUIZ #3 – (On material since last quiz – 1-week before end of class)
26.  
THE PHILLIPS CURVE - INFLATION AND ANTI INFLATIONARY POLICY
  • McConnell and Brue – Ch. 16, pp. 161-168
  • Walstad and Bingham - CH. 16, CH. 8 (PART)
27.  
ECONOMIC GROWTH
  • McConnell and Brue – Ch. 18.
  • Walstad and Bingham – Ch. 18.28. 

 
28.  
FINAL EXAM