Macroeconomics And The Global Economy Syllabus

Macroeconomics and the Global EconomySyllabusTextbook: Macroeconomics by Paul Krugman and Robin icsOrientation Introduction Honor Code Class Rules and Expectations Pre-Assessment Math Review (Appendix-Chapter 2 p 49)Review on the concepts and calculations on nonlinearslopesArc and Tangent Methods (if needed-Chapter 2 AppendixIntroduction/Overview of MacroeconomicsDiscussions on the 1st five principles of EconomicsPractice Problems pp 20-22, 59-69Difficult Choice Activity- p 8 IRM Economic Models: Trade-offs and TradeCasual Relationships-p 23 IRM Economic Models: Trade-Offs and TradeTrade Offs: The production Possibility Frontier-Efficiency-Opportunity Cost Related ActivitiesGetting to know GameLearning Style SurveySigning DocumentsPre-AssessmentDiscussionsGroup Activity on the slopes ofNonlinear CurvesDefining Macroeconomics andits Key PrinciplesExit TicketReflectionsStudy Hall, Chapters 2 &3Questions/problemsp 39 # 1, p 43 #1, p 44 #1 and p94 #’s 1, 2, and 3Day 1 ReflectionsQuick Review on the previousday discussions and materialsReview on Day 1 reflections

AfternoonEvening3MorningAfternoon Opportunity Cost Total Revenue-Economic Profit-Economic Growth-Transactions: The Circular Flow DiagramSupply and Demand-A Model of a Competitive market-The Demand Schedule and Demand CurveGiant Living Supply and Demand ActivityShifts of the Demand CurveOpportunity CostUnderstanding Shifts of the Demand CurvePPF AnalysisSupply, Demand and EquilibriumQuestions for thoughtAnalysis on the comparative Advantage and Gains fromTradePractice problems selected from pg 90-92, 113-116Global Comparison (GC)A Ticket Shortage-pg 41 IRMEconomic ModelsTrade OffsComplements & SubstitutesCircular Flow of Economic ActivityPrice Ceilings/Price Floors (Quotas, Licenses)Discuss Sugar Quota Problem – Pg 39 IRMComparative vs. absolute advantageSources of CA Difficult Choices Activity-p 8Instructor’s Resource Manual(IRM)Supply and Demand BingoQuiz on the Opportunity CostActivity on PPFProduction of Paper AirplaneCoastersWould you switch? Would youeat PB with no J? Drawing a Demand Curve – p38Active Readings on (Chapters 3)Day 2 Reflections Simple review the previousdays materialDay 2 reflections reviewGiant Living Supply & DemandActivityBuying & Selling TurquoiseSimulation – pg 39 IRM(Chapters 3)Talk and Turn activitiesRound Table DiscussionsDiscussions and GroupActivities

Evening4MorningAfternoonEveningIntroduce two-panel diagram analysisGlobal Comparison (GC):Pay More, Pump LessS&D autarky vs. tradeEconomics in Action -Rich Nation, Poor Nation – p 39Questions for Thought International TradeComparative v. absolute advantageCA Simulation RevisitedSources of CA Phase 2Autarky v. Trade (shows there are gains from trade)S&D autarky v. tradeIntroduce two-panel diagram analysis (Chapter 5) AfternoonInternational International TradeWorld price Phase 3Import QuotasTariffsQuotas *Practice problems selected from pg 143-146For Inquiring Minds (FIM)Increasing Returns and International TradeFIM – Chinese Pants Explosion Drawing a Demand Curve pg 38IRMA Ticket Shortage – pg 41 IRMActive Reading on Chapters 4and 5 for group presentationsDay 3 ReflectionsSimple Recall on the previousday materialsDay 3 Reflections reviewActive Group Presentations-Presenters-Audience-Q & A between presenters andAudienceActive Group Presentations-Presenters-Audience-Q & A between presenters andAudienceCA Simulation RevisitedPick a Trade Dispute – pg 66 IRMTwo-panel analysis oftariffs/quotas (Chapter 5)Questions for ThoughtDay 4 Reflections

5MorningAfternoon 6Macroeconomics: The Big Picture (Chapter 6)The Nature of MacroeconomicsExpanded circular flow with Foreign MarketsTheory and PolicyInflation and Deflation and Its CausesLong-Run Economic GrowthFending Off DepressionComparing RecessionsThe Pain of Inflation and DeflationInternational ImbalancesBusiness CycleThe Business Cycle and the Decline of the MontgomeryWardCharting Business CycleInternational ImbalancesSundayEvening Computer LabResearch on topics unemployment rates, factors thatcontributes unemployment growth and status quo ofmacroeconomics in supply and demandMorning GDP and the CPI: Tracking the Macroeconomy (Chapter 7)GDP Calculations (real exports) real and nominal (Students’ notetakingstrategies-Instructor check’sstudents’ notetaking skills)Simple Recall on topicsdiscussed on the previous dayReview on Day 4 ReflectionsRecommendations onNotetaking skills (Cornell Notetaking system)Turn and Talk ActivityRound table DiscussionsReview on what discussed inthe morning sessionClass circular-flow revisited:Open EconomyWhat’s In, What’s Out? p 85IRMQuestions for ThoughtGDP Calculation practiceResearch on the followingtopics:-Status quo of macroeconomicsin supply and demand-Unemployment rates invarious states-Factors that contribute themost to economic growth?Follow ups/Questions relatedto their research

GDP, CPI, PPI, Deflator, and Inflation rate calculationsInflation and Interest Rates: shoe-leather costs, menu cost,nominal and real interest ratesUnemployment and Inflation (Chapter 8)-Types-Causes-Natural Rate AfternoonEvening Long-Run Economic Growth (Chapter 9)ProductivityReal GDP/CapitaGrowth RatesRule of 70 (or 72)Factors of Long-Run GrowthAggregate Production FunctionEconomic Growth and SustainabilityRaising the Bar(code)Introduction of Country Analysis Project Simple recall on the previoustopics discussedDay 5 Reflections ReviewWho made a higher startingsalaryCPI watching Christmas PriceIndexCreating Price Index ActivityGroup Discussions and AnalysisHow often a business owner goto the bank?How often a restaurant ownerchanges their menu prices?Who counts when the BLScounts number ofunemployed?Name that Unemploymentp95 IRMGC-Unemployment Around theOECDDiscussionsEIA Group Case Studies-p 107108 IRMLong-Run Economic Growthand Natural Resources-p 109IRM**Economic Advice, Pleasecheck p 110 IRMPractice Problems pp. 266-266Questions for Thought

7Morning Savings, Investment Spending, and Financial System(Chapter 10)The Saving-Investment Spending IdentityLoanable Funds Market Supply and DemandTasks of Financial SystemTypes of Financial AssetsRole of Financial IntermediariesFinancial FluctuationsAsset Prices and MacroeconomicsThe Great American Bubble Income and Expenditures (Chapter 11)Marginal propensity to consume/saveThe multiplier-Infinite SeriesIndividual consumption function Practice problems pp. 340-341GC-America’s Low SavingsEIA- The Multiplier and the Great Depression pg. 133 IRM AfternoonEvening Discovering Data Questions #’s11 and 15Project on the Long-RunEconomic Growth prediction oftheir Country’s Choice based onthe factors and its indicators ofLong-Run Economic GrowthQ & A on the Country AnalysisProjectSimple recall on the previoustopics discussedDay 6 Reflections ReviewMatch the Saver with theInvestor Banking Simulation(Showing the Importance offinancial Intermediaries)EIA-Banks & The South KoreanMiracle – pg 121 IRMSpending Round by Round – pg134 IRMWhat’s your consumptionFunction?(Students’ personalconsumption)Group country Analysis Project:Basic key indicators for thecountry (current and past GDP,unemployment rate, inflationrate, exchange rate,consumption/saving rate

8Morning Afternoon9 Aggregate Demand and Aggregate Supply (Chapter 12)InventoriesAggregate Demand Curve and the Income-ExpenditureModelAggregate SupplyInvestment Spending (Planned and unplanned)Chapter 11 and AppendixPlanned aggregate spending (Keynesian Cross)Shift of PAE with changes to consumption and investment Evening Toyota Makes Its MovePractice Problems pp 377-379 Morning The AD-AS ModelShifts of Aggregate Demand: Short-Run EffectsThe Curves (AD, SRAS, LRAS)Macroeconomic Policy AD/AS Model ContinuedShifts and Shifters (Shocks)Practice on Supply Shocks vsDemand Shocks in PracticeStabilization Policy Introduction Afternoon Simple recall on the previoustopics discussedDay 7 Reflections ReviewDiscussionsInventories and the End ofRecession-pg 133 IRMWorking with the AggregateConsumption Function-pg 134IRMGraphing AnalysisQuestions for ThoughtResearch Paper TopicsSelectionsSimple recall on the previoustopics discussedDay 8 Reflections ReviewDiscussionsClass AD Simulation (Eachstudent will represent a ShortRun planned AggregateExpenditure Equilibrium pointand are challenged toaggregate and build the ADCurveAD/SRAS/LRAS BingoEIA-Supply Shocks vs. DemandsShocks in Practice pg 150 IRMEIA-Is Stabilization PolicyStabilizing? -pg 150 IRM

10Evening Practice Problems selected from pp 377-379Research Paper (Continuation)Morning Fiscal Policy (Chapter 13)Expansionary/Contractionary fiscal policyTax multiplierTaxes vs. transfers vs. Government Spending Afternoon11Morning Balancing the Federal BudgetGovernment Debt and Interest PaymentsFiscal Policy and the MultiplierAusterity and the MultiplierThe Budget BalanceImplicit LiabilitiesMoney, Banking, & the Federal Reserve System (Chapter 14)Money and Its RolesBanks and T-AccountsReserve RatioDetermining the Money SupplyThe Money Multiplier Afternoon Central Banks-The FederalOpen-market OperationsThe Financial Crisis of 2008 AD/SRAS/LRAS Bingo (withStudent Callers)Simple recall on the previoustopics discussedDay 9 Reflections ReviewClass DiscussionsWhat’s the best fiscal year Discussions/DebateEIA-Expansion Fiscal Policy inAction in Japan- pg 162 IRMTo Balance or not to BalanceActivity-pg 166 IRMHere comes the SunPractice Problems pp407-410Simple recall on the previoustopics discussedDay 10 Reflections ReviewClass DiscussionsGC-The Big Moneys“Bad Banks” Activity/T-AccountPractice (This American Life)Be a Bank’s Accountant-pg 178IRMFederal 101Fed Open-market CommitteeActivity

12Evening Perfect Gift: Cash or a Gift Card?Research Paper (Continuation)Morning Monetary Policy (Chapter 15)Demand for Money CurveShifts and ShiftersMoney Supply CurveShiftsReconciling the Two Models of Interest Rates Interest Rate in the Short/Long RunExpansion/Contractionary Monetary PolicyMoney S&D/PAE/AD/AS Chain reactionInflation/Interest Rate TargetsPractice Problems pp 436-438Research Activities International Macroeconomics (Chapter 18)Open Economy MacroeconomicsCapital Flows and balance of paymentsLoanable Funds in 2 Countries Exchange Rates-Appreciation-app/depreciationThe Foreign Exchange Market S & DPurchasing Power of ParityExchange Rate PolicyExchange Rates and Macroeconomic PolicyThe Little Currency that Could AfternoonEvening13MorningAfternoon Questions for thoughtDay 11 ReflectionsPractice Problems pp 444-445Simple recall on the previoustopics discussedDay 10 Reflections ReviewClass DiscussionsFed Open-Market CommitteeActivity revisited with GraphsPg. 189 IRMEIA – A Yen for CashPg-188 IRMEIA-The Fed Reserves CoursePg 188 IRMQuestions for ThoughtDay 11 ReflectionsEIA-International Evidence ofMonetary Neutrality-pg 188IRMSimple recall on the previoustopics discussedDay 10 Reflections ReviewClass DiscussionsResearch Paper FinalizationTo Fix or To Float? ActivityEIA-Low Cost America-pg 218IRMEIA-China Pegs the Yuan-pg 552IRM

14Evening A Yen for Japanese CarsPractice Problems 559-561Morning Synopsis and ReviewAfternoon15Morning Research PresentationsPost AssessmentsFinal PresentationsFinal ThoughtsCertificates and Goodbyes Questions for ThoughtDay 12 ReflectionsResearch PresentationsSimple recall on the previoustopics discussedDay 13 Reflections ReviewClass DiscussionsGroup PresentationsDebate

Macroeconomics and the Global Economy Syllabus Textbook: Macroeconomics by Paul Krugman and Robin Wells Day Session Topics Related Activities 1 Morning Orientation Introduction Honor Code Class Rules and Expectations Pre-Assessment Getting to know Ga