General: This course will provide a basic grasp of the aggregate economy as described by mainstream economics. Emphasis will be place upon national income accounts, macroeconomic models of the economy (Keynesian, Monetarist, classical, neoclassical), money and banking, and policy problems. Questions of what causes economic recessions, depressions and expansions; how can unemployment and inflation be explained and managed and what is the role of the various government institutions (the Federal Reserve, Congress, the executive branch) in managing the economy will be discussed.

Students will be expected to master the standard textbook and have a moderate familiarity with at least some of the supplementary readings, which challenge conventional economics. All of the supplementary readings are on reserve in the library. It is expected that you have read the material prior to class.

My course website is http://www.vermontel.net/~hancockp/. You will find homework assignments, exam reviews and other good information on the course webpage. Check it frequently.

Book: Neva Goodwin, Julie A. Nelson, and Jonathan Harris, with contributions by Brian Roach and James Devine. Macroeconomics in Context.

Other readings: In addition, you are expected to read the Financial Times or the New York Times on a daily basis and be prepared to discuss current economic events. This is part of the assigned reading and you may be held responsible for it on exams.

Supplementary Readings:

Nancy Folbre/The Center for Popular Economics, The New Field Guide to the U.S. Economy

Robert L. Heilbroner, Beyond Boom and Crash

E.K. Hunt and H. Sherman, Economics

Samuel Bowles/Richard Edwards, Understanding capitalism

Requirements:

Grading: 10% will be based on participation, 30% on homework assignments, 15% on each of two mid-terms and 30% on the cumulative final exam.

Homework: Assignments can be found on the website. They will be chosen from the problems and questions at the end of each chapter. Assignments must be handed in on the day they are due. Homework grades will be lowered a full letter grade if handed in after the class during which they are due and another letter grade for each 24 hour period thereafter.

Class participation is also required. Please purchase a package of 3x5 index cards to bring with you to class—they will be a vehicle for class attendance and participation. At the end of every class, you need to turn one in with your name, the date, a comment and/or a question.

Optional Group Presentations: Students can substitute a group presentation for one of the homework assignments. See the link to the list of presentations and their descriptions on the course web page.

Exam Policy: There are no make-up exams in this class with the exception of documented medical emergencies. Do not make plans to leave campus early for spring break or before final exams.

Readings and Assignments

Introduction

January 16 (M): Introduction and Mathematic diagnostic

Readings: none

Assignment: Homework #1 on website (TBA)

Basic Economic Concepts (supply/demand, graphs, role of the government)

January 18 (W): Macroeconomics in Context

Readings: Goodwin Ch. 1

Optional Group Presentation: #1 Graph & Math Review

January 20-23 (FM): Some Useful Tools of Analysis

Readings: Ch. 2

Exercise (If time): Double Oral Auction

January 25-27 (WF): What Economies Do

Readings: Ch. 3

Optional Group Presentation: #2 Why not a College-owned Bookstore?

January 30-Feb. 1 (MW): Demand and Supply

Readings: Ch. 4

Measuring Economic Performance

February 3-8 (FMW): Measuring Output and Unemployment

Readings: Goodwin Ch. 5, Robert Pollin “Doing the Recovery Right” The Nation January 30, 2009 http://www.commondreams.org/view/2009/01/30-9

Optional Group Presentation: #3 Comparative Growth Rates

Homework Assignment #1 due Wednesday February 8

February 10-13 (FM): Measuring Environmental/Social Dimensions

Readings: Ch. 6

February 15-20 (WFM): The Labor Force: Measuring Employment, Unemployment and Composition

Reading: Ch. 7

Optional Group Presentation: #4 Unemployment by Race, Gender

Homework Assignment #2 due at beginning of class on Monday February 20

February 22 (W) Review for Exam 1

February 24 (F): Exam #1 (Chap. 1-7)

February 27-March 2 (MWF) The Structure of the U.S. Economy

Reading: Ch. 8

Spring Break

Theory and Policy

March 12-16 (MWF): Aggregate Demand, the Business Cycle and the Keynesian Model

Readings: Ch. 9

Optional Group Presentation #5: The reserve army of the Unemployed.

March 19-23 (MWF): Fiscal Policy: Spending, Taxes and the Federal Budget

Readings: Ch. 10, Political Economic Research Institute Paper

Optional Presentation #6: Produce a graph of macro variables.

March 26 (M): Review for Exam 2

Homework Assignment #3 due at beginning of class on Monday, March 26

March 28 (W) Exam #2 (chap. 8-10)

The Federal Reserve, the Full Macroeconomic Model and the Global Economy

March 30-April 4 (FMW): Money, the Price Level and the Federal Reserve

Readings: Ch. 11

April 4 (W) Quiz (Keynes versus Classical school, Consumption Function, Loanable Funds Theory)

EASTER BREAK

April 11-18 (WFMW) Aggregate Demand, Aggregate Supply and Inflation

Readings: Ch. 12

Optional Group Presentation #7: Relative rates of Inflation --- Health Care, College Tuition

April 20 F) Film: The Take

April 23-25 (MW): The Global Economy

Film: The Take (finish) ~ put on library reserve

Readings: Ch. 13

April 27- May 2 (FMW) Assessment and Review for Final Exam

Homework Assignment #4: due at beginning of class on Monday April 30.

Final Exam: 8 a.m. Friday May 4th