Ohio University-Lancaster
Economics 104
MACROECONOMICS

Prof. Ault office #310 
Phone: (740) 654-6711x243 
e-mail: aultl@ohio.edu
url: http://oak.cats.ohiou.edu/~aultl
Textbooks:
Economics, 15th ed., McConnell/BRUE
Economic Concepts, Bingham (optional)
Everyday Economic Statistics, Clayton & Giesbrecht 

Links to the Web


Requirements:
The purpose of the course is to identify and explain the four basic questions of macroeconomics as outlined in the syllabus. Lectures and class discussion will be based upon the textbook material relating to the basic theory of national output, income and employment analysis, economic problems and economic institutions.

Grading Basis:
A = 90-100% 
B = 80-89 
C = 65-79 
D = 55-64 
F = < 55
(0-400 pts.) Four exams - multiple choice/short answer 
  • 50 questions on each exam
  • each exam will comprise roughly 25% of your grade in this class
  • Note exception of essay question on final exam
(0-20 pts.) Mandatory Homework Assignments (journal) 

(0-10) There MAY be short quizzes or problems during the term


 
Attendance:
We strongly recommend that you show for class! A courtesy call would be appreciated if you have a conflict. There will be a five minute break with no catering of meals for late returnees. You are expected to be here. You are responsible for all assigned work, all exams, all materials covered, knowing about schedule changes, when exams are scheduled, and when assignments are due . . . whether or not you come to class. ABSENCE IS NOT AN EXCUSE for not knowing about or doing assignments or exams.


UNIT 1 -- The American Economy: Its Structure & Operation
 
Topic Reading Assignment
A. Tools of Economic Analysis 
1. Structure 
2. History, Economic policy (value statements) 
3. Theory 
4. Statistics
M/B: 1&5*,6,7,8
Bingham: 1,4
WSJ CHS: 1&2 (pp. 1-46)
Handouts: Spillovers & Taxes
B. Four Basic Questions of Macroeconomics (an overview) 
1. How do we MEASURE total output of economy's goods & services?
a. statistics
2. What DETERMINES the level of total output? 
a. theory
3. What CAUSES CHANGES in the level of total output? 
a. theory
4. How can we CONTROL the changes in the level of total output? 
a. policy
1. fiscal 
2. monetary 
3. incomes
C. Mixed Capitalism: The Economic Functions of Government & the Goals of Capitalism 
D. The Public Sector (Gov't): Facts of American Capitalism 
E. National Income Accounting (basic question #1
1. Measuring the economy = performance 
2. GDP: expenditures = income


UNIT TWO --Basic Macroeconomic Questions
 
Topic Reading Assignment
A. What Causes Changes in Level of Output? 
1. The business cycle: unemployment & inflation
M/B:  8,9,10
Bingham: 5, 6
(pp. 153 - 200)
WSJ: 3, 4, 5
B. What Determines the Level of Output? 
1. Overview of macro theory 
2. Analytical tools of Keynesian Employment Theory 
3. Equilibrium NDP & the Keynesian Model
Collect Project Data


UNIT THREE - How Can We Control GDP Changes? Monetary Policy.
 
 
Topic Reading Assignment
A. Institutions & Functions of Money & Banking System 
1. Money 
2. Commercial banks: money creation 
3. Federal Reserve: money supply control
McConnell: 13,14,15,19
Bingham: 7
WSJ: 6&7
Submission of project
B. How Banks Create Money 
C. The FED & Monetary Policy
D. Monetarism & Milton Homework:preliminary
E. Comparison of Policies (value judgements) 
1. Keynesian: demand mgt. 
2. Monetarism: money mgt. 
3. Supply siders: supply mgt.



 
 
 
 
 
 
 
 

UNIT FOUR: How Can We Control GDP Changes? Fiscal Policy.
 
Topic Reading Assignment
A. Fiscal Policy McConnell: 11, 12, 16, 18
B. Federal Budget Deficits Results in Federal Debt Bingham: 6 (203-216)
C. Inflation & Unemployment Again WSJ Homework: Submit Project


UNIT FIVE: Domestic Growth & the World Economy
 
Topic Reading Assignment
A. The Economics of Growth & Productivity 
1. Theory 
2. Policy
McConnell: 17,20,21,23
Bingham: 13
WSJ: pp. 131-140
B. Comparative Advantage 
1. Domestic 
2. International
C. Economics of Free Trade & Protectionism  1. Effects of quotas & tariffs