Principles of Macroeconomics: Economics 201

Northern Virginia Community College, Manassas Campus

Spring Session 2011: January 12 – May 4 Wed. 7:00 – 9:40 PM
Instructor: Roger Schaufele, Jr.
E-mail: rschaufele@nvcc.edu Phone: 703-257-6500 (ext 47024)

Communication

You may reach me either by e-mail or phone.

E-mail: I check my e-mail frequently. This is the best way to communicate with me.
Phone: If you wish to speak with me, please call the office number listed above and
leave a message indicating what would be a good time for me to contact you, and I will
try to get back to you as soon as possible.

Course Description

The course introduces macroeconomics including Keynesian, classical and monetarist

principles and theories. As a hybrid course, while the number of class meetings is less
than a traditional course, the amount of material covered is the same. Students are
expected to combine independent study with class instruction. Topics covered include
supply & demand, national income accounting, inflation, unemployment, economic
growth, fiscal policy, monetary policy, and international trade. The course is designed to
provide students with conceptual and analytical tools to understand economic principles
and policies.

Objectives

This course is designed to provide students with the conceptual tools and analysis to
understand economics principles and policies.

1. Look at everyday events within a framework of supply, demand and prices.

2. Use terms such as GDP, unemployment, and inflation to analyze the health of the
economy.
3. Have a deeper insight into the decisions the government makes about taxes and
spending.
4. Understand how money and interest rates affect the economy.

Text: Macroeconomics, Krugman & Wells, 2nd Edition

Grading

Grades are based on combination of homework, midterm and final exam scores.
Homework: 20%
Midterm I: 20%
Midterm II: 20%
Final Exam: 40%

Attendance Policy

For the dates when a class meeting is scheduled, I must take attendance. However, it is
up to you as to whether or not you show up. However, since your grade in the class is
based on your homework and exam scores and since the exams are based on material
from the class lectures, it would be in your best interest to attend regularly. If you do
decide that you don’t want to attend the lectures but do intend to remain in the class,
please notify me of this decision so I don’t drop you from the class.

Outline

Date Session Book Chapters Topic(s)

1/12 In Class 1,2, Appendix First Principles, Econ Models, Graphs
1/19 On-line 3 Supply/Demand
1/26 In Class 3,4,6 Supply/Demand, Market Intervention, Macro Overview
2/2 On-line Midterm I – on line
2/9 In Class 7,8 Measuring Output, Inflation/Unemployment
2/16 On-line 7 Measuring Output
2/23 In Class 9,10,11 Growth, Savings/Investment, Income/Spending
3/2 On-line 12 Aggregate Supply/Demand, Review for Midterm II
3/9 NO CLASS – SPRING BREAK/Midterm II on line
3/16 On-line 13 Fiscal Policy
3/23 In Class 13,14 Fiscal Policy, Money & Banking, Money Creation
3/30 On-line
4/6 In Class 15,16 Monetary Policy, Inflation
4/13 On-line 16,17 Inflation, Macro Policy and Theory Disputes
4/20 In Class 5,17,18 Macro Policy Disputes, Int’l Trade, Exchange Rates
4/27 On-line Review for Final Exam
5/4 In Class Final Exam
Homework: Homework consists of chapter problems below

Date Assigned Assignment

1/12 Ch, 1: 1, 12; Ch. 2: 2, 8, 14
1/19 Ch. 3: 2, 13, Problem Set I
1/26 Ch 4: 7, 8; Ch 6: 3, 8
2/9 Ch 7: 3, 8b-e; Ch. 8: 3, 8, 10
2/23 Ch. 9: 2, 7; Ch. 10: 2, 9, 11; Ch. 11: 2, 8, 12
3/2 Ch. 12: 4, 6, 8, 12, 15
3/16 Ch. 13: 3, 6, 11, 15, Problem Set II
3/23 Ch. 14: 2, 4, 12
3/30 Ch. 15: 2, 6, 12
4/6 Ch. 16: 3, 6, 9
4/13 Problem Set III
4/20 Ch. 5: 1, 4, 5; Ch. 17: 2, 7; Ch. 18: 2, 8

Homework policy

Homework should be submitted to the instructor in the homework section of the Blackboard site
for the course. Homework will be due 1 week after the date assigned unless student has
unavoidable and documented cases that are beyond the student’s control. Homework will be
penalized 25% for every week late. Computer/internet failures will not be considered valid
excuses for late homework. As such, it is advisable to submit your homework as early as possible.

Exam policy

Midterms will be take home exams that will need to be submitted to the instructor via e-mail no
later than time and dates specified. Midterms that are submitted after the specified time and dates
will be given a grade of “0”.