Introduction to Macroeconomics MECO 113 Spring 2006

1
Introduction to MacroeconomicsMECO 113 Spring
2006

• Dr. Philip J. McLewin
• Professor of Economics
• E-mail pmclewin_at_ramapo.edu
• Webhttp//phobos.ramapo.edu/pmclewin/PM_Web/macr
  ointro.htm

2
Exploration 1 The Economy Economics

• After today you should be able to
• Describe the major topics to be covered in the
  course
• Relate course goals, grading, attendance policy,
  reading assignments, etc.
• Describe what, more than anything else,
  determines ones standard of living

3
(No Transcript)
4
Form into groups to learn about the course

• Join a group based on the number on your playing
  card All Aces together, 1s, 2s, etc.
• Introduce yourselves
• The course handout has four pages 5 min
• Hearts read course goals (p.1)
• Spades read grading and books (p. 2)
• Clubs read schedule (p.3)
• Diamonds read course outline (p. 4)
• Explain the course handout to your group members
  3-4 min. for each section
• Be prepared to explain what you read to the
  entire class randomly selected.

5
Goals be able to write an essay, take a test,
create, identify, calculate .

• Defining features of modern capitalism
• Macroeconomic measurements trade-offs
• Macroeconomic theory
• Competing explanations
• Graphs and data
• Macroeconomics as a policy science
• Learning environment (group work wireless
  response system reflections on your learning)

See full course outline
6
(No Transcript)
7
Grading Plan Extra Credit

• No fault quizzes using clickers
• Only right answers count towards extra credit on
  a coming exam
• Generally every class session will include
  several questions on the readings, group
  exercises, lectures or discussions.
• Maximum up to 5 extra credit points for each
  test
• Example If you earn 85 on Test 1 (thats a
  B) but if you have also earned 5 extra credit
  points leading up to the test thats 90 (an
  A).
• Start your clickers buy and activate them now!

8
The course Attendance policy

• For each class session you attend you earn points
  perfect attendance adds 5 to your grade
  (again, the difference between 75 and 80 is a
  B vs. a C)
• You will do it through the blue clickers
• Dont be late!
• Dont leave it in your dorm room!
• Key to sympathetic treatment Contact me in
  advance by telephone or e-mail

9
What is the current state of the economy?

• Low unemployment rate UR
• Goal 4 to 5.5
• Actual http//www.bls.gov/cps/
• Low inflation CPI
• Goal 1 to 3.5
• Actual http//www.bls.gov/cpi/
• Smooth growth of output GDP
• Goal 3 to 4
• Actual http//www.bea.gov/
• Nice summary http//www.argmax.com/
• Fairness Distribution of income and wealth

10
The course What to read buy

• David C. Colander, Macro-economics (New York
  Irwin/McGraw-Hill) special custom version
  Economics, Introduction to Macroeconomics, MECO
  113-01, Dr. Philip J. McLewin. about 45
• Wireless response pad 4.50
• On-line access code 6 15 with used book
• 1000 class key G17282I495
• 1130 class key J17283A752

11
A word about the wireless response pads

• Hand held device that enables you to respond
  electronically to questions I pose in the
  classroom.
• Engage you with content some graded, some not
• Assess your performance attendance quizzes
  in-class exercises
• There is instant feedback showing class results.
• Do you have your response pad with you today?
• A Yes
• Must bring every class day no excuses accepted

12
See course outline for class key
If you bought a new book, enter a code and save
money
http//www.einstruction.com/
13
Recommended reading

• Mainstream press The New York Times
  http//www.nytimes.com/ subscribe on-line for
  free
• Downstream press The Nation www.thenation.com
  also largely free on-line
• International perspective
• The Guardian http//www.guardian.co.uk/
• BBC News http//news.bbc.co.uk/1/hi/business/bus
  iness_basics/default.stm

14
Reading Schedule
15
Reading Schedule first month see on-line for
the rest
16
Course Outline example for next time
Exploration 2 Economic Reasoning The Dreaded
Disease Thread from previous exploration The
course is about the economy and its health
recall the four goals, hence economics
developed as a way of thinking about the economy,
how it works and why it might fail us at
times. Reading David Colander hereafter DC,
Chapter 1 Exercise The Dreaded Disease
download/print Goals Define economics

pages 12 - 13 Define opportunity cost and give
illustrations pp.
16-17 Define market, political, social and
cultural forces pp. 17-19 Explain
the invisible hand
pp. 17 p. 20-21 Reflect on the relative
merits of each in the context of opportunity cost
and The Dreaded Disease problem.
Page s not in black circle
17
Exploratory discussion

• Jeopardy answer For the majority of the worlds
  population this, more than anything else,
  determines what ones standard of living will
  be.
• Jeopardy question What is .
• Procedure
• Re-join your group
• Develop a list of possible questions -- write
  them on a transparency

http//www.sonypictures.com/games/jeopardy/
18
Whats next?

• We need to explore markets more thoroughly
• Read Colander, Chapter 1 Real World Macro, page
  5
• What is economics?
• Opportunity cost?
• Economic and market forces?
• Look for the exercise on-line The Dreaded
  Disease copy and bring it to class
• Webhttp//phobos.ramapo.edu/pmclewin/PM_Web/macr
  ointro.htm

19
Minute paper not graded

• What went well today?
• What questions do you have about the course?