GENERAL BUSINESS 765
SPRING 2003
Instructor: Elizabeth Sawyer Kelly
Office: 7416 Social Science
Office Phone: 608-262-8829
Office Hours: Before and after class and by appointment
E-mail: eskelly@facstaff.wisc.edu
Webpage: www.ssc.wisc.edu/~ekelly/genbus
Text: Macroeconomics: Principles and Applications, by Robert E. Hall and Marc Lieberman. In addition, there is a Study Guide available to accompany this text. The Study Guide is optional, but highly recommended. Both of these texts may be purchased at the University Bookstore.
There are many definitions of economics. Two of my favorite are 1) Economics is the study of choice under conditions of scarcity; and 2) Economics is the study of the production, allocation, and distribution of goods and services in a world where resources are scarce. In this course we will explore the relevance of these two definitions and then turn our attention to exploring a variety of macro topics including unemployment, inflation, and sluggish economic growth. We will also consider the monetary and fiscal policies available to the government to alter the prevailing economic situation. The course will also examine the role of government, government expenditures and revenues, the Federal Reserve System, and the creation of money.
COURSE
STRUCTURE AND GRADING POLICY:
There is one lecture a week starting at 6:15 and ending at approximately 9. We will have a single 15 minute break in the middle of the lecture. Attendance is not mandatory at the lectures, but exams will focus primarily on material presented in lecture. Students are expected to have completed the reading prior to lecture. A second reading of the textbook after the lecture will greatly enhance your understanding of the ideas being presented.
There will be two midterms and a comprehensive final. The format for all exams will be announced in class prior to the exam. The time allowed for each midterm exam will also be announced in class prior to the exam. In addition to these exams, there will also be QUIZZES throughout the semester. The first midterm will be on
WEDNESDAY,
FEBRUARY 26, 2003
And the second midterm will be on
WEDNESDAY,
APRIL 9, 2003.
Both of these exams will be held during the regularly scheduled class meeting time.
The final exam for this course will be held on
WEDNESDAY,
MAY 7, 2003
during the regularly scheduled class time. The final will be comprehensive and cumulative and students will have the entire class meeting time to complete the exam. We will not have a break during the final exam.
All three exams are mandatory and any student missing any exam will receive a grade of zero for that missed exam.
There will be a total of five QUIZZES over the course of the semester. If you miss a quiz you will receive a grade of zero for that quiz.
First Midterm 25% of your final grade
Second Midterm 25% of your final grade
Quizzes 20% of your final grade
Final Exam 30% of your final grade
LOW GRADES ON MIDTERMS
WILL NOT BE DROPPED.
THERE IS NO EXTRA CREDIT
IN THIS COURSE.
NO LATE HOMEWORKS WILL BE
ACCEPTED.
Helpful hints for
students:
1. Attend all lectures: most of the material emphasized on exams will be covered in lecture.
2. Prior to going to class, try to read the assigned material. If possible, read it again after the lecture: you will be surprised by how this will improve the depth of your understanding.
3. Visit the website for Professor Kelly’s Econ 102 course for practice questions, problems, old homeworks, and other helpful material. www.ssc.wisc.edu/~ekelly/econ102
4. If you are struggling with the material see Professor Kelly: do not wait until later in the semester if there are problems.
5. No special considerations will be given to students beyond that offered due to a student’s status as a McBurney student.
3. GRADE
DISTRIBUTION:
Letter grades in this course will be roughly distributed as follows:
A: 20%
AB: 20%
B: 35%
BC: 15 %
C: 10%
CLASS MEETING DATES:
1/22/03 PRACTICE QUIZ #1
1/29/03 QUIZ #1
2/5/03
2/12/03 QUIZ #2
2/19/03
2/26/03 FIRST MIDTERM
3/5/03
3/12/03 QUIZ #3
3/19/03 UW SPRING BREAK
3/26/03
4/2/03 QUIZ #4
4/9/03 SECOND MIDTERM
4/16/03
4/23/03 QUIZ #5
4/30/03
5/7/03 FINAL EXAM
READING LIST:
The following dates and assignments are advisory: Professor Kelly reserves the right to adjust the dates and the assignments as needed. Please pay attention to announcements in class about any reading assignment changes.
1/22/03 Introduction: PPFs, Absolute and Comparative Advantage
Read Chapter 1 and the Appendix to Chapter 1 and Chapter 2
Review of Supply and Demand
Read Chapter 3
1/29/03 Continuation of The Review of Supply and Demand
Introduction to Macroeconomics: GDP Accounting and Employment
Read Chapters 4 and 5
2/5/03 Continuation of Introduction to Macroeconomics
2/12/03 Inflation and Employment
Read Chapter 6 and the Appendix to Chapter 6
2/19/03 Classical Long Run Model and Economic Growth
Read Chapters 7 and 8
2/26/03 FIRST MIDTERM
3/5/03 Booms and Recessions: Economic Fluctuations
Read Chapter 9
3/12/03 Short-run Keynesian Model
Read Chapter 10 and Appendix 1 and Appendix 2 to Chapter 10
3/19/03 SPRING BREAK
3/26/03 Continuation of Keynesian Model
4/2/03 Banking System and the Money Supply
Read Chapter 11
4/9/03 SECOND MIDTERM
4/16/03 The Money Market and the Interest Rate
Read Chapter 12
4/23/03 Aggregate Demand and Aggregate Supply
Read Chapter 13
4/30/03 Inflation and Monetary Policy
Read Chapter 14
Fiscal Policy
Read Chapter 15
5/7/03 FINAL EXAM