MANHATTANVILLE COLLEGE
Department of Economics, Finance & Management
Professor William C. Perkins
Office: Reid Hall 400-A. Telephone: (914)-323-5149
E-mail: perkinsw@mville.edu
Office hours to be announced the first day of classes.
Course Description: This course provides an introductory treatment of macroeconomic, measurement, theory and policy. Students are introduced to the nature of economics and the way economic problems are analyzed. Major topics include the market system, demand and supply, the economic role of government in market economies, national income accounts and the problems of inflation and unemployment. Fiscal and monetary policies are discussed with particular attention to the post 1945 record in the U.S.
Required Reading:
Economics; Principles, Problems and Policies, (16th edition) by Campbell McConnell and Stanley Brue, Irwin McGraw-Hill, Inc., 2005.
A subscription to Business Week magazine is also required.
Course Requirements: Three exams will be given. The two best grades will each account for 35% the final course grade. The low exam score will account for 20% of the course grade. Timely completion of homework assignments, class participation and regular attendance will account for about 10% of the final grade.
August 30 Introduction McConnell & Brue (M&B)
(a) micro and macroeconomics chapter 1 pp. 1-6, 9-11
only
(b) why study economics? and study
question # 10
September 6 The Economic Method (M&B) ch.1(continued);
(a) the model-building method appendix optional.
(b) positive v. normative economics Answer study questions # 7
(c) economic policymaking and 11.
September 13 The
Economizing Problem
(M&B) chapter 2; answer
(a) scarcity, cost and choice #6,7,10,11 & 12
p.37.
(b) production possibilities
September 20 The Market System (M&B) chapters 3 & 4.
(a) demand and supply # 3, 6, 7, 9 on p.57.
(b) market equilibrium
(c) the circular flow & role of market
September 27 The Mixed Economy (M&B) chapter 5.
(a) the private sector # 1, 2, 3, 9, 10 & 11
(b) the public sector on page 90.
(c) the economic role of government
October 4 FIRST EXAM
October 11 Macroeconomic Measurement (M&B) chapter
7 & #8
(a) gross domestic product (GDP) 9, 12 & 13 on pp.129-130
(b) other macroeconomic aggregates
(c) measuring the price level
(d) nominal and real output
(e) GDP and social welfare
October 18 Growth & Economic
Instability (M&B) chapter 8 and # 1,2,
(a) the business cycle 6, 8, 12 & 14 on p. 151.
(b) unemployment
(c) inflation
October 25 Consumption, Investment
& the multiplier (M&B) chapter
9
(a) consumption and saving #3,5,6,8, & 9 p. 169.
(b) Investment
(c) the multiplier and changes in GDP
November 1 Aggregate Demand and Supply (M&B) chapter
11
(a) equilibrium output and price level #4,6,7& 13 on
(b) changes in equilibrium GDP p. 209.
November 15 Fiscal Policy (M&B) ch. 12.
(a) Employment Act of 1946 # 3, 9 & 12 on p. 229.
(b) Discretionary fiscal policy
(c) Problems with discretionary policy
(d) Automatic fiscal stabilizers
November 22 Money and Banking (M&B)
ch. 13
(a)
functions of
money #
6,8, 9
(b)
money supply on
page 250.
(c) money demand
(d) interest rate
(e)
the Federal
Reserve
THANKSGIVING HOLIDAY
November 29 How Banks Create Money (M&B)
ch. 14
(a)
the single bank # 3,
4 & 6
(b)
the banking
system
on pp. 289.
(c)
the need for
monetary control
December 6 Monetary Policy (M&B) ch. 15
(a)
the Fed’s
policy-making group
(b)
general instruments
of policy #3-6 on
(c)
effects and efficacy
of policy p.289
(d)
the fed funds rate
and the prime
(e)
money and economic
activity
FINAL EXAM
Date to be announced by the Manhattanville College Registrar’s Office.