Macroeconomics and the Global Economy CTY Course Syllabus Day/ Time Day 1 AM

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Week 1 -Introductions, Honor Code, Class -Get to know you Rules/Expectations -Pre-assessment -Pre-assessment - Did You Know 3 - video Math Review (If needed - Chapter 2 - Opportunity cost activity Appendix) What is Econ? -Introduction/Overview of -Lecture: What is Macroeconomics?, Key Macroeconomics Principles (Chapter 1, 6) -Rice Fields, Oreos Activity -Practice problems selected from pg 20-22, 59-69 -Ch 1: 1d,i; 5 a,c; 7; 12 Ch 2 appx 1, 9 -Supply & Demand Review & Practice -Concept Check – ppt review day1 -Complements & Substitutes - Supply and Demand – Car Wash - normal/inferior goods - Global Comparison (GC) - Pay More, Pump Less - shortage/surplus - pg 99 rent control article -Price Ceilings/Price Floors - Supply and Demand – Markets Interact -Practice the S&D Shifters (Chapters 3, 4)

- Supply & Demand Activity - Markets never stand still 1-4 -Discuss Sugar Quota Problem -Practice problems selected from pg 90-92, 113-116 - Blue Jeans Activity - Buying & Selling Turquoise Simulation – pg 39 IRM Ch 3: 1,2 Ch 4: 3a,b; 8a Economic Models Positive and Normative analysis -Production possibility frontier (Chapter 2) -Trade-offs, Trade -Comparative and absolute advantage -Circular-flow (Chapter 2)

-Concept Check- - S&D Activity, Markets never stand still 5-6 - Tortoise and the Hare - Production possibility frontier – pg 20 IRM

- Dandy Dollar Activity - Circular Flow Chart activity -Practice problems selected from pg 42-44 -Economics in Action (EIA) – Rich Nation, Poor Nation pg36 – pg 19 IRM

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Day 4 AM

International Trade -Comparative v. absolute advantage -Sources of Comparative Advantage -S&D autarky v. trade International Trade -World price, -Tariffs, -Quotas Globalization and the WTO - Multinationals (Chapter 5)

- Concept Check - Trading bags activity – free trade

Day 4 PM

Article discussions – Multinationals – Sweatshop Earth? - What’s to like about outsourcing? The influence of International Labor Markets -Practice problems selected from pg 143-146 -For Inquiring Minds (FIM) – Increasing Returns and International Trade 3a,b,c,d; 12 Tracking the Macroeconomy - Concept Check - Cars and Computers activity and -Expanded circular-flow with Foreign - Barriers to International Trade Handout Markets - GDP calculation practice -GDP calculations (including net exports) real and nominal - What’s In, What’s Out – pg 85 IRM - Stiglitz – GDP article -, GDP Deflator, and inflation rate calculations if students are unfamiliar (Chapter 7) -Unemployment: introduction and - Anderson – GDP article calculation types, causes, natural rate (Chapter 8) Ch 7: 6; 8a,b,c,d, (to 1980) Summary and reflection – writing exercise

Day 4 Evening Day 5 AM

Day 5 PM Day 5/sun

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Week 2 Unemployment: types, causes, natural -Concept Check – what affects GDP handout rate Bhutan Gross Domestic Happiness Index – part of (Chapter 8) video. CPI, PPI - CPI – Candy Price Index -Inflation & Interest Rates: shoe-leather costs, menu costs, nominal and real interest rates Long-Run Economic Growth The Many Development benefits of educating girls: -Productivity Pakistan – article -Real GDP/capita -Growth rates -Rule of 70 (or 72) -Factors of L-R growth -Economic growth and sustainability (Chapter 9) -Practice problems selected from pg 254-256 : Ch 8: 6, 8 + ch9 -Hand out the Country Analysis Project and have students get into their groups to pick their country and begin planning for their project. Groups of 3 or 4 each pick a country and collect and track important macro data on that economy. Students will present data and make a L-R economic growth prediction based on indicators and factors of L-R growth. Savings, Investment Spending, and the -Concept Check: Financial System - name that unemployment -Who is hurt and who is helped by unanticipated -Loanable funds market S&D inflation -Role of financial intermediaries - EIA Group Case Studies – pg 107-108 IRM (Chapter 10) Income & Expenditure -EIA – Banks & the South Korean Miracle – pg -Marginal propensity to consume/save 121 IRM -The multiplier - Saving and Investing w Financial Intermediaries -Aggregate consumption function activity -Inventories, Investment spending (planned & unplanned), (Chapter 11) -Practice problems selected from pg 284-286 , Multiplier practice problems from pg 311-314 CH10: 4a,b, 8, 11, Ch11 7 Computer lab-Group Country Analysis Project: basic key indicators (GDP, unemployment rate, inflation rate, exchange rate, consumption/savings rate, trade balances and major trading partners, political situation)

Day 8 AM

Aggregate Demand & Aggregate Supply -The curves (AD, SRAS, LRAS) -Wealth and interest rate effects (Chapter 12)

-Concept Check: -Spending Round by Round – pg 134 IRM -GC – America’s Low Savings pg 261 -EIA – The Multiplier and the Great Depression - Interest Rates and the US Housing Boom – pg 133 IRM -Expenditure multiplier Example – with taxes

Day 8 PM

-AD/AS model continued -Shifts and shifters (shocks) -Stabilization policy introduction (Chapter 12)

- Macroeconomic Equilibrium Activity

Day 8 Evening

-Practice problems selected from pg 311-314 8, 12 -Group Country Analysis Project: infrastructure and technology

Day 9 AM

Fiscal Policy -Expansionary/contractionary fiscal policy -Tax multiplier -Taxes vs. transfers vs. government spending - Automatic Stabilizers (Chapter 13 & Appendix)

-Concept Check pg 333 Prices and Output during the Great Depression pg341 Supply shocks vs Demand Shocks in Practice Memo from the Chairman of the Federal Reserve bank activity - What is a fair tax? activity -What’s the best fiscal policy? Discussion/Debate -EIA – Expansionary Fiscal Policy in Action in Japan – pg 162 IRM

Day 9 PM

-Balancing the Federal budget -Government debt and interest payments (Chapter 13)

--EIA – About that Stimulus Package – pg 162 IRM - Unemployment and Budget 1928- 1946 activity - The uneducated American by Krugman - article - To Balance or Not to Balance? Activity – pg 166 IRM

Day 9 Evening

-Practice problems selected from pg 347-349 ch13: 3,6,15 - Computer lab-Group Country Analysis Project: basic key indicators (GDP, unemployment rate, inflation rate, exchange rate, consumption/savings rate, trade balances and major trading partners, political situation)

Day 10 AM

Day 10 PM

Day 10/su

Money, Banking, and the Federal Reserve -Money and its roles -Banks and T-accounts -Reserve Ratio -Determining the money supply -The money multiplier (Chapter 14) -Central banks – The Fed -Open-market operations

-Concept Check -Water world - Dolphin Money article - Money Creation Experiment - It’s a wonderful life – econ in the movies

Ch 14 2, 4, 6

Summary and reflection – writing exercise

- Wizard of Oz article

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Day 12 AM

Week 3 -The financial crisis of 2008 (Chapter -Concept Check 14) - Federal Funds Market experiment Monetary Policy - EIA – A Yen for Cash – pg 188 IRM -Demand for money curve -EIA – The Fed Reserves Course – pg 188 IRM -Shifts & shifters - Memo from the chairman activity -Money supply curve -Shifts (Chapter 15) -Interest rates -Monetary Policy Group Exercise -Expansionary/contractionary monetary policy -Money S&D/PAE/AD/AS chain reaction -Inflation/interest rate targets (Chapter 15) -Practice problems selected from pg 376-378, 411-413, Practice problems selected from pg 436-438. Ch15:2,5,6 - Computer lab-Group Country Project: basic key indicators (GDP, unemployment rate, inflation rate, exchange rate, consumption/savings rate, trade balances and major trading partners, political situation, central bank) Current crisis and the Great Depression -Concept Check – comparison. Veil of Ignorance Activity Open-Economy Macroeconomics -Capital flows and balance of payments Chapter 18

Day 12 PM Day 12 Evening

- Group Country Analysis Project -EIA – Low-Cost America – pg 218 IRM -EIA – China Pegs the Yuan – pg 218 IRM Problems for balance of payments: Ch 18 1,3 - -Group Country Analysis Project: finish up presentations

Day 13 AM

-Exchange rates – app/depreciation -The foreign exchange market S&D -Purchasing power of parity Capital inflows/Capital outflows Pegging (Chapter 18)

-Concept Check

Day 13 PM Day 13 Evening Day 14 AM

-Group Country Analysis Project

Finish up Group Country Analysis Project

Day 14 PM Day 14 Evening Day 15 AM

Review Jeopardy 

-Practice problems selected from pg 522-524: 18: 6,8,9,10 -Group Country Analysis Project: -Group Country Analysis Presentations -Group Country Analysis Presentations - Leverage presentation - activity

Post-test -Final thoughts - goodbyes

Human Development Index Economic Freedom Index Immigration articles