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ECN2000-04 Principles of Macroeconomics

Department of Economics
Babson College
Spring 2019

Tuesday 03:00 PM-4:35 PM

Thursday 03:00 PM-4:35 PM

Instructor Information

Professor: Albert Barnor

E-mail: abarnor@babson.edu
Lecture Room: Horn Computer Center 153
Office Hours: Tuesday and Thursday after Class Westgate -RM 445 or By Appointment
Phone #: 617-834-2269

Textbook
Macroeconomics, R. Glenn Hubbard and A. Patrick O’Brien (7th Ed). Pearson Publishers
ISBN: 13:978-0-13-473831-4

Course Description

Welcome to ECN2000-04 Principles of Macroeconomics, an introductory course in the study of

Macroeconomics. The primary focus of the course is on current Macroeconomic policy issues in the
economy of the United States and the economies of the world. Topics will include but not be limited to
the following: the measuring of national economic activity; the role of fiscal and monetary policies in
stabilizing a turbulent economy; the relationship between inflation and unemployment; the role and
function of the Federal Reserve in addressing monetary policy; and, the role of government in promoting
long term economic growth. Analytical techniques practiced in class will allow individual students to
begin formulating opinions about the economic problems faced by the United States and countries around
the world.

EC 112 Principles of Macroeconomics

I. COURSE GOALS

The aim of this course is for students to acquire the skills needed to analyze the economic
environment of business. This will include the influence of government and central bank
policies, recessions and expansions, and inflation and growth on the economy. In addition, there
will be an introduction to important debates such as: Keynesian versus Classical approaches, rules
versus discretion, the national debt, and "supply-side" economics.

II. SPECIFIC LEARNING OBJECTIVES

A. Knowledge – Participants will be able to

 Explain the short-and long-run effects of monetary and fiscal policy decisions on
macroeconomic variables such as production, employment, interest rates, prices,
consumption, and investment.
 Distinguish between monetary and fiscal policies and describe how each is implemented.
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B. Skills – Participants will be able to

 Analyze the impact of economic shocks and policy decisions on key variables using
macroeconomic models and graphic analysis.
 Use and develop logical reasoning skills to explain how different assumptions lead to
different models (and results).

C. Perspectives – Participants will be able to

 Articulate differing economic perspectives on macro policy.

 Develop a keen awareness of the international ramifications of national policies through
lectures, readings, and other media.

Course Essentials:
Please come to class prepared. This requirement can be satisfied by reading assigned chapters of the
textbook and completing assignments in advance. Students will be graded on their active participation in
class discussions. It is strongly recommended that individuals ask questions as these questions will shed
light on issues not only for the individual but also for members of the class.

Classroom Format:
Each class will consist of a lecture and discussion on assigned chapters and topics. There will be four
multiple choice quizzes. There will be no make-ups on quizzes. Homework assignments should be
completed before class. All homework assignments should be submitted typed in standard format.
Homework assignments are designed to give individuals the opportunity to practice concepts and
definitions addressed in class and in the reading. Homework must be the individual’s own work. While
group discussions are encouraged for homework, students are expected to work on their own once
composition begins. Both the midterm and final are closed book examinations. Examinations will be a
combination of multiple choice and short essays questions. Please check the Academic Policy Section of
the Babson College Website regarding academic integrity. Also, No Cell Phone Use As A Calculator in
Class or During Examinations.

Academic Integrity:
This class will be conducted in full accordance with Babsons policies on academic integrity and the
Babson Honor Code.
http://www.babson.edu/academics/undergraduate/Documents/undergraduate-handbook.pdf

Grading:
Grading for this course will be based upon student performance in each of the following areas:
Homework/ Class Assignments 15%
Quizzes 20%
Mid Term 30%
Final 35 %
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Macroeconomics -Class Schedule

Week of Topic Assignment

January 22 & 24, 2019 GDP Measuring Total Chapter 8

Production and Income
January 29 & 31, 2019 GDP Measuring Total Chapter 8
Production and Income
February 5 & 7, 2019 Unemployment and Inflation Chapters 8, 9

February 12 &14, 2019 Economic Growth, the Chapters 9,10

Financial System, and Quiz 1
Business Cycle
February 19 & 21, 2019 Aggregate Expenditure and Chapter 12
Babson Monday 2/19. No Output in the Short Run
Tuesday Class
February 26 & 28, 2019 Aggregate Expenditure and Chapter 12
Output in the Short Run Quiz 2
March 5 & 7, 2019 Aggregate Demand and Chapter 13
Aggregate Supply Analysis

March 12, 2019 Money Banks and the Federal Chapter 14

Reserve System
March 14, 2019 Midterm Examination
March 18 - 22, 2019 Spring Break No Class

March 26 & 28, 2019 Money Banks and the Federal Chapter 14
Reserve System
April 2 & 4, 2019 Money, Banks, and the Chapters 14,15
Federal Reserve System Quiz 3
Monetary Policy
April 9 & 11, 2019 Monetary and Fiscal Policy Chapters 15,16, 17

April 16 & 18, 2019 Fiscal Policy Chapter 16

Quiz 4
April 23 & 25, 2019 Fiscal Policy Chapter 16

April 30, 2019 Macroeconomics in an Chapter 18

Open-Economy
May 2, 2019 International Financial Chapter 19
System
May 7, 2019 Final Examination 10:30AM-12:30 P M

Subject to Change