William Rainey Harper College MACROECONOMICS! MACROECONOMICS IN THE GLOBAL ECONOMY ORIENTATION - Fall 2009 ~/~ Home ~/~ Syllabus ~/~ Schedule ~/~ Assignments ~/~ Lectures ~/~ Blackboard ~/~ Textbook Website ~/~

Welcome to ECO 212 Online!

ECO 212-W01 orientation is Tuesday, 8/25, 5:00-6:15 p.m. in room J-251. The orientation is optional. All the information is available online on this syllabus and on the orientation webpage at: ORIENTATION

Where do you start?

• Read the Syllabus
• On Blackboard click on "WEEKLY ASSIGNMENTS"

At first the materials and structure of this course will seem confusing and maybe a bit overwhelming. This orientation will begin the process of learning to navigate through the course. Remember that you can always ask your instructor for help (mhealy@harpercollege.edu). For those students who missed the on-campus orientation, this web page contains the material that was discussed.

INSTRUCTOR / ROSTER

MATERIALS

Textbook and Study Guide: 

Macroeconomics by Campbell R. McConnell, Brue, and Flynn, 18th edition, McGraw-Hill, 2009   Study Guide to Accompany Macroeconomics by McConnell, Brue, Flynn, and Walstad.   Textbooks can be bought at the Harper College bookstore (L building) or online at: http://www.harperstore.com

WEB PAGES / INTERNET

BLACKBOARD

• Go to http://harper.blackboard.com
• Follow the instructions to "log-in",
  • If you need help see the following on the Blackboard opening page:
    • "Getting Started with Blackboard"
    • "Student Blackboard Technical Support"
• You should see "ECO 212 W01- Fall 2009 - Macroeconomics (Healy)" or "ECO 212 B01- Fall 2009 - Macroeconomics (Healy)"

  • If you do not please e-mail the instructor: mhealy@harpercollege.edu 

 

• Blackboard site will contain:
  • WEEKLY ASSIGNMENTS - this is where you begin
  • Discussion Board
  • Online Quizzes
  • Exams - taken online at the Harper Testing Center
  • Announcements
  • Grades

 E-MAIL

Option to Forward New Harper Email Account

• If you are not planning on using your new Harper email account, please view the instructions on how to forward that account to one you check frequently. Visit http://harper.blackboard.com and check out "How do I forward my Harper email?" in the "Getting Started with Blackboard" are

TEXTBOOK WEBSITE 

• http://www.mcconnell18e.com,
  • click on "Macroeconomics",
  • then click on "Online Learning Center - Student Edition" in lower left-hand corner

    

FACEBOOK

I have set up a facebook study group: HarperEconomics. I will be monitoring this group regularly.

To join the HarperEconomics group, click the group icon in the lower left corner of Facebook and search for HarperEconomics.

HOMEPAGE

Much of the material can also be found at: http://www.harpercollege.edu/mhealy/eco212i/home.htm

EVERYTHING can be found on our Blackboard Site

OTHER:

• ECO 212-W01 does NOT meet at Harper once a week and there is NO certain time that you must be online.

• Always put "ECO 212" and a message in the subject lines of e-mail messages sent to the me. To avoid viruses, I delete messages prior to reading them if I don't know who they are from.
  
• You are NOT on your own. Your instructor is available to provide assistance and answer questions:
  • The Blackboard Discussion Board for course CONTENT questions
  • E-mail for personal questions: mhealy@harpercollege.edu
  • Call me at
    • Home: 815-728-1571
    • Cell: 815-861-7265
    • Harper: 847-925-6352

 WHERE TO BEGIN YOUR STUDYING

• The Blackboard WEEKLY ASSIGNMENTS link will provide access to:
  • Course schedule
  • Online Lecture
  • Assignments

   

EXAMS:

• Exams for ECO 212-W01 and ECO 212-B01will be taken at the Harper Testing Center sometime on, or before, the date it is scheduled (see Schedule).
  • For the Testing Center location, hours, and phone number see: Assessment Center hours.
• BEFORE taking the exams, be sure to do the problems listed on the Assignments page. Use the Discussion Board to ask questions.

   

ASSIGNMENTS

• These are IMPORTANT.
• See the ASSIGNMENTS link on blackboard.
• Always look here BEFORE beginning a new chapter. We do not always read the whole chapter and sometimes additional pages from another chapter are included.
• Few students pass the class without doing the assigned problems. DO THEM and use the Discussion Board if you have questions.
• The answers to the Study Guide questions are at the back of each chapter.
• I strongly urge you NOT to circle your answers to the multiple choice questions in the Study Guide
  • It is easier to grade your answers if they are written on a piece of paper
  • You will want to use some of the questions again as you study for the comprehensive final

   

MANY OF YOU WILL NOT COMPLETE THIS COURSE

• Distance learning courses tend to have a high drop rate. Many students who register for, and pay for, online classes never complete them. Harper gets your money and you get nothing. Up to half of you will not complete this course. If you cannot devote at least as much time or MORE to this course than you do to regular face-to-face college courses, drop now.
• College counselors suggest that you should spend 2 hours studying EACH WEEK for each course credit-hour. Since this is a three-hour online class this means that you should plan for NINE hours a week a week (three hours of "class" and 2 x 3 hours of studying).
• If you decide not to finish the course and you do not officially withdraw by the drop date you will receive an "F" grade for the semester.
• For the last day to withdraw from course see the course schedule.

SYLLABUS
[Go to: http://www.harpercollege.edu/mhealy/eco212i/macsyli.htm]

BLACKBOARD
You may want to log in to BLACKBOARD and take a quick "tour" of the web pages that you will be visiting often this semester.

GETTING STARTED

• The BEST place to begin to organize your studying is the WEEKLY ASSIGNMENTS link on Blackboard which will guide you through all the course components week-by-week
  

ONLINE vs. FACE-TO-FACE

• You should think of these distance learning classes as similar to a normal face-to-face class. In both types of courses there is/are:
  • lectures
  • class discussions on the Discussion Board
  • textbook and study guide
  • assignments
  • exams and quizzes
  • an instructor
    • E-MAIL: mhealy@harpercollege.edu
    • Discussion Board
    • Harper: 847-925-6352
    • Home: 815-728-1571
    • Cell: 815-862-7265

 I. Introduction to Macroeconomics

QUESTION: Assume that a hurricane has struck the coast of Florida causing massive destruction. As a result, the prices of many products like hotel rooms, water, plywood, etc. increase significantly. For example, let's say the price of plywood increases from a price of $10 a sheet before the hurricane to $30 a sheet after the hurricane. What should the government do? A. Pass a law to make these "price-gouging" increases illegal returning the price to $ 10 B. Nothing. Let the price of plywood rise to $30 or more C. Other. Please explain on the Discussion Board

• Why it is GOOD for the people of Florida if, after a hurricane strikes, the price of plywood (or other products) increases from $10 a sheet to $30 a sheet
  [See: http://netra.sptimes.com/Weather/92698/Gouging_complaints__r.html]

 

• Why it was GOOD when the Coca-Cola company(or other companies lays off 6000 workers as they did in the year 2000.
  [See: http://money.cnn.com/2000/01/26/worldbiz/coke/]

 

• Why the price of gasoline in the United States is TOO LOW (we may have to wait until after we finish chapter 4 to truly understand this.)
  [See: http://money.cnn.com/pf/features/lists/global_gasprices/]

 

• Why it is GOOD when companies "outsource" (or move) jobs to India and other countries (again, we may not really understand this right away but we should after chapters 5 and 20).
  {See: http://www.cnn.com/2005/US/03/03/cafta.push/index.html]

   

 II. Introduction to Macroeconomics in the Global Economy

A. Why "the Global Economy"?

1. Who has taken a MICROeconomics course (ECO 211)?

2. no prerequisite for ECO 212

3. need to review of microeconomic principles

4 Therefore, we'll do so, but in an international context

B. The three issues of Macroeconomics

a. Unemployment (UE)
b. Inflation (IN)
c. Economic Growth (EG)

 C. Structural Adjustment and Globalization:

1. What is Structural Adjustment?

2. Structural Adjustment Policies

• Privatization
• Promotion of Competition
• Reduced Role of Government
• Removing Price Controls
• Freer Trade and Convertible Currency
• Foreign Investment
• Other

3. Goals of SAPs / Globalization / Economics

• Maximize society's satisfaction = improve the standard of living
  • Be sure to read the "5Es" lecture
• Macroeconomic Goals:
  • full employment
  • low inflation
  • economic growth

4. Problems with SAPs:

• initial inflation and unemployment
• initial falling output and living standards
• inequality and social costs - some people are worse off

We need to know basic economic principles to understand WHY the world is moving toward Structural Adjustment or Globalization.

D. Applications / Examples

1. Video: Korea vs. Sri Lanka

While watching the video look for answers to these questions:

a. What are they doing? (POLICIES)

b. Why are they doing it? (BENEFITS)

c. What negative effects might arise? (COSTS)

 

Available online at: Click on: http://www.learner.org/resources/series86.html Scroll down to: 10. Developing Countries - How these nations have been helped or hurt by the rapid growth since WWII. Case studies: comparing South Korea and Sri Lanka; aid vs. trade in Tanzania. Click on (A free registration is required for first time users) Then slide the timer to minute 7:45 for the eight minute South Korea vs. Sri Lanka case study

2. Iraqis Confront Mysteries of Capitalism

by Adam Davidson
Weekend Edition Sunday, February 5, 2006 · Just three years ago, Iraq had one of the most rigidly controlled economies in the world. Today Iraqis are struggling to understand an emerging capitalist system. Listen by clicking the link below.
http://www.npr.org/templates/story/story.php?storyId=5190405

3. Read: http://www.cnn.com/ALLPOLITICS/time/1999/12/06/free.trade.html

"The mystical power of free trade: Some people find it hard to believe it really works, but it does. " By Michael Kinsley

 

4. Some people oppose Structural Adjustment

WTO PROTESTS IN SEATTLE / CANCUN, Mexico

http://cnn.com/ALLPOLITICS/time/1999/11/22/seattle.battle.html
http://www.cnn.com/2003/WORLD/americas/09/11/cancun.wto/index.html

5. But most economists, political leaders and people (?) support SAPs

Why?

To answer this we need to:

• Understand the GOAL of Economics
• Learn the 5 Es of Economics

But this article will show you some of the results of SAPs:

Also read:

STRUCTURAL ADJUSTMENT IN AFRICA:
http://www.csmonitor.com/durable/1998/04/01/p7s1.htm

 III. Macroeconomic Policy - What should the government do?

A. Macroeconomic Goals:

• full employment
• low inflation
• economic growth

B. The current recession

Economists Duke It Out Over Stimulus Plan [5 min 20 sec] by David Kestenbaum Morning Edition, January 2, 2009 · Economists often disagree about ways to solve economic problems. Two economists duke it out in a boxing match of words. In one corner, a supporter of the incoming Obama administration's stimulus plan who says government spending is essential to create jobs. In the other corner, an economist who believes taxpayers — not the federal government — should decide where to spend a trillion dollars of the nation's economy. http://www.npr.org/templates/story/story.php?storyId=98943851