ECONOMICS 222-C – Principles of Macroeconomics, Spring 2020

Instructor Prof. Daniel E. Saros Phone 219-464-5166

Time/Location MWF 12:30 to 1:20 PM, VUCA, Room 1417 E-mail Dan.Saros@valpo.edu

Office Hours M 1:30 to 5:00 PM, W 1:30 to 2:00 PM, Office College of Arts and Sciences, 374
and F 1:30 to 3:30 PM

Catalog Description of the Course

An introduction to macroeconomic analysis with emphasis on national income, consumer spending, investment, government and monetary aspects

Course Objective:
The unique discipline of economics was born during the transition from feudalism to capitalism in Western Europe. Over the course of the last
several hundred years, many economic theories were developed as economists labored to explain the inner workings of market capitalism. Although
many competing schools of economic thought exist presently, the school of thought that we will refer to as “mainstream economics,” “neoclassical
economics,” or “orthodox economics” is the dominant one today. The main objective of this course is thus to introduce you to the strengths and
limitations of neoclassical macroeconomics.

Required Texts and online learning tools for Spring 2020:

Greenlaw, Steven A., David Shapiro, and Timothy Taylor (senior contributing authors). Principles of Economics. 2nd edition. OpenStax, Rice
University: Houston, TX; 2018. Required (in hard copy or e-book format).
The Sapling Learning online learning tool is also required for the completion of all homework assignments in this class.

Semester Units:

UNIT 1: The Foundations of Mainstream Economics, chapters 1-3 and Appendix A

UNIT 2: Macroeconomic Measurement and the Basic Macroeconomic Model, chapters 19, 21, 22, and 24
UNIT 3: Competing Perspectives, the Monetary System, and the Role of Government, chapters 25-28 and 30

Goals:
By the end of ECON 222, students will be able to (see USLOs 1, 2, and 6 on page 4):

 Grasp foundational mainstream economic models and concepts, including the production possibilities model and the supply and demand
model.
 Explain how key macroeconomic variables are measured, including aggregate output, the price level, inflation, unemployment, and the
labor force.
 Analyze the differences between the Keynesian and neoclassical macroeconomic perspectives using the aggregate demand/aggregate
supply model.
 Describe how the monetary system functions and the role of the Federal Reserve in the banking system
 Distinguish between the monetary policy actions of the Federal Reserve and the fiscal policy actions of the federal government
 Evaluate macroeconomic policy measures in terms of their impact on key macroeconomic variables, including the rate of economic growth,
the unemployment rate, and the rate of inflation.

Problem Sets

 Students will have the opportunity to complete as many as 13 problem sets throughout the semester. The 10 highest problem set scores will
count towards the final grade. All problem sets are to be completed using the Sapling Learning online learning tool. Repeat attempts are
possible but students will lose 10% of the credit on each question for each failed attempt. Each problem set has 10 questions that must be
completed online prior to the due date and time. Students may use their own notes and books to complete the graded problems sets.
 Students should complete these assignments without the assistance of anyone else. It is a violation of the Honor Code to accept the
assistance of anyone else when completing graded problem sets in this class. Ungraded practice problems for each chapter are also
available in Sapling Learning.

Exams

 An in-class exam will be administered at the end of each semester unit. The third and final exam will be administered during final exam
week. The final exam is not comprehensive and will only cover the information from unit 3 of the course. The exams consist of multiple
choice questions, problems, and short answer questions. The best exam score will count twice when determining the final grade. All exams
are to be completed in-class without the assistance of notes, books, or electronic devices (except for a basic calculator or foreign
language/English dictionary when needed). It is also a violation of the Honor Code to accept the assistance of anyone else when
completing the exams in this class.

Expectations
The students in this course are expected to attend class regularly. Students should also complete assigned readings prior to each class. Problem sets
should also be completed by the due date. Any student having difficulty with the material should feel free to approach me at any time throughout the
semester.

Grading
The grading scale that will be utilized is as follows: A = 92-100, A- = 90-92, B+ = 88-90, B= 82-88, B- = 80-82, C+ = 78-80, C = 72-78, C- = 70-72,
D+ = 68-70, D = 62-68, D- = 60-62, F = 60 and below. Each student is entitled to a grade as determined in this section. The instructor reserves the
right to make an adjustment to the final grades to benefit all students equally. Students are not entitled to this positive adjustment, which is granted
entirely at the discretion of the instructor. An estimate of this positive adjustment will be determined after each exam, but the final determination of
the point adjustment will not be made until the end of the semester. The final adjustment may be higher or lower than the estimate announced in
class.
Problem Sets (the best 10 scores): 20% 100
Exam 1: 20% 100
Exam 2: 20% 100
Exam 3 (Final Exam): 20% 100
Best exam score (counted twice) 20% 100
TOTAL 100% 500

Attendance Policy
Students are expected to attend all classes. Daily attendance records will be maintained. A student may incur a maximum of three unexcused
absences during the semester. If a student misses three classes without a university excuse, the student will lose 5 points for each additional class
missed. Excused absences will only be permitted when the university recognizes the absence as an excused absence. The student is required to
provide me with the necessary documentation to obtain an excused absence. In the event that a student arrives late to class, it is the responsibility of
that student to inform me at the end of the class that he or she was present that day. No changes will be made to the attendance records after the class
period has ended.

Policy Regarding Plagiarism

Academia is ultimately about the intellectual exchange of ideas. When we express ideas that are not our own ideas as if they are our ideas, we honor
ourselves at the expense of others. On the other hand, when we credit others with the original expression of ideas, we honor them and play an active
role in the intellectual exchange of ideas that ultimately advances understanding. When in doubt, it is always best to cite another person’s work
rather than credit yourself. Plagiarism will not be tolerated at any stage of writing for each assignment in the class. Any Honor Code violation
in this respect will be submitted to the Honor Council so please use good judgment and ask questions when in doubt.

Technology Policy
Personal electronic devices should not be used during class so that students are able to focus on the classroom experience. Students should silence
cell phones and other devices so as not to distract others in the classroom.

Student Learning Objectives (SLOs) for the Department of Economics

The Department of Economics seeks to achieve the following student learning objectives (SLOs) for all students. The SLOs are closely aligned
with the University SLOs. See p.4.

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  Student Learning Objective (SLO) #1: Students will develop a deep and refined knowledge of both microeconomic theory and
macroeconomic theory.

 Student Learning Objective (SLO) #2: Students will demonstrate proficiency in the use of applied econometric skills and the
relevant software necessary to conduct empirical analysis.

 Student Learning Objective (SLO) #3: Students will acquire an understanding of the moral and ideological implications of
economic issues by studying competing economic worldviews, contemporary issues, and economic history.

 Student Learning Objective (SLO) #4: Students will be able to analyze and express the manner in which governments and
central banks influence individual markets and the overall economy.

 Student Learning Objective (SLO) #5: Students will be able to recommend and defend economic policies by drawing upon
different economic perspectives and theories.

University Policies & Resources

Honor Code:

 All participants in ECON 222 will uphold the Valparaiso University Honor Code.
 Valparaiso University’s Honor Code - http://www.valpo.edu/student/honorcouncil/
o “I have neither given or received, nor have I tolerated others’ use of unauthorized aid.”

Access and Accommodations:

The Access & Accommodations Resource Center (AARC) is the campus office that works with students to provide access and accommodations in
cases of diagnosed mental or emotional health issues, attentional or learning disabilities, vision or hearing limitations, chronic diseases, or allergies.
You can contact the office at aarc@valpo.edu or 219.464.5206. Students who need, or think they may need, accommodations due to a diagnosis, or
who think they have a diagnosis, are invited to contact AARC to arrange a confidential discussion with the AARC office. Further, students who are
registered with AARC are required to contact their professor(s) if they wish to exercise the accommodations outlined in their letter from the AARC.

University Counseling Center:

The University Counseling Center is located on the Northwest side of Alumni Hall.  This is a wonderful resource that is available to all VU students. 
Students may use the counseling center to enhance their current functioning or wellbeing as well as receive help with any issues they are facing. 
Individual counseling is available free of charge for full-time undergraduate, graduate or law students.  Intake appointments can be arranged by going
in person to the Counseling Center in Alumni Hall or by calling 219-464-5002.  
Diversity & Inclusion:
Valparaiso University aspires to be a welcoming community, one built on participation, mutual respect, freedom, faith, competency, positive regard,
and inclusion. We see difference as a strength and reason for celebration. As such, we do not tolerate language or behavior that demeans members of
our classrooms based on age, ethnicity, race, color, religion, sexual orientation, gender identity, biological sex, disabilities (visible and invisible),
socio-economic status, and national origin. Instead we commit ourselves to the values of diversity and nondiscrimination, conducting our classroom
as “a learning community where students are encouraged to question, to engage, to challenge, to explore, and ultimately, to embark on a rewarding
personal and professional journey. This can be done only in an environment where diversity is honored and respected. Diversity of thought. Diversity
of background. Diversity of faith." (President Mark Heckler)

Class Cancellation Method:

Notifications of class cancellations will be made via e-mail with as much advance notice as possible. It will be sent to your Valpo e-mail address. If
you don’t check your Valpo e-mail account regularly or have it set-up to be forwarded to your preferred e-mail account, you may not get the
message. Please check your Valpo e-mail (or the e-mail address it was forwarded to) before coming to class.

Statement Regarding Sexual Misconduct

Valparaiso University strives to provide an environment free of discrimination, harassment, and sexual misconduct (sexual harassment, sexual
violence, dating violence, domestic violence, and stalking). If you have been the victim of sexual misconduct, we encourage you to report the
incident. If you report the incident to a University faculty member or instructor, she or he must notify the University’s Title IX Coordinator about the
basic facts of the incident. Disclosures to University faculty or instructors of sexual misconduct incidents are not confidential under Title IX.

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Confidential support services available on campus include: the Sexual Assault Awareness & Facilitative Education Office “SAAFE” (219-464-
6789), the Counseling Center (219-464-5002), University Pastors (219-464-5093), and the Student Health Center (219-464-5060). For more
information, visit http://www.valpo.edu/titleix/.

EMERGENCIES:

VU’s Emergency Notification System (ENS) uses multiple forms of communication, including e-mail, building alarms, outdoor sirens, message
boards, computer alerts, Twitter, and public address messaging. Please review the specific procedures for this class found in Blackboard. Remember:
“Siren inside, GO outside; Siren outside, GO inside.” To evacuate, gather your personal belonging quickly and proceed to the nearest exit. Do not use
the elevator. To shelter in place, move away from the windows and stay low to the ground; lock or barricade the door if there is a threat of violence.

University-Wide Student Learning Objectives

1. Students will demonstrate skill in various methods of acquiring knowledge in the humanities, social and natural sciences, quantitative
reasoning, and the creative arts.
2. Students will master and demonstrate content knowledge by using methods such as inference, generalization, and application.
3. Students will become active learners by finding, analyzing, synthesizing, and evaluating information.
4. Students will demonstrate the ability to build logical and persuasive arguments, cases, reports, and/or responses.
5. Students will communicate clearly and effectively in both oral and written forms.
6. Students will achieve a basic level of technological adeptness, appropriate to their field(s) of study.
7. Students will interact and collaborate effectively in groups and teams.
8. Students will explore the relationship between faith and learning.
9. Students will practice the virtues of empathy, honesty, and justice in their academic endeavors.
10. Students will appreciate that diversity in areas such as culture, gender, race, sexual orientation, and religion is pertinent to functioning
successfully in a global community.

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Course Schedule: ECON 222-C
WEE DAY DAT DESCRIPTION TOPIC REQUIRED READING ASSIGNMENT
K E
1 Wed 8-Jan Classes Begin Syllabus Elements -- --
50 mins Assessment
1 Fri 10- 50 mins Introduction Chapter 1
Jan
2 Mon 13- 50 mins Introduction Chapter 1
Jan
2 Wed 15- 50 mins Mathematics Review Appendix A Problem Set 1 due by 5 PM
Jan
2 Fri 17- 50 mins Mathematics Review Appendix A
Jan
3 Wed 22- 50 mins Scarcity Chapter 2 Problem Set 2 due by 5 PM
Jan
3 Fri 24- 50 mins Scarcity Chapter 2
Jan
4 Mon 27- 50 mins Scarcity Chapter 2
Jan
4 Wed 29- 50 mins Demand and Supply Chapter 3 Problem Set 3 due by 5 PM
Jan
4 Fri 31- 50 mins Demand and Supply Chapter 3
Jan
5 Mon 3-Feb 50 mins Demand and Supply Chapter 3
5 Wed 5-Feb 50 mins Exam 1 Review -- Problem Set 4 due by 5 PM
5 Fri 7-Feb 50 mins Exam 1 --
6 Mon 10- 50 mins The Macro Perspective Chapter 19
Feb
6 Wed 12- 50 mins The Macro Perspective Chapter 19
Feb
6 Fri 14- 50 mins The Macro Perspective Chapter 19
Feb
7 Mon 17- 50 mins Unemployment Chapter 21 Problem Set 5 due by 5 PM
Feb
7 Wed 19- 50 mins Unemployment Chapter 21
Feb
7 Fri 21- 50 mins Unemployment Chapter 21
Feb
8 Mon 24- 50 mins Inflation Chapter 22 Problem Set 6 due by 5 PM
Feb
8 Wed 26- 50 mins Inflation Chapter 22
Feb
8 Fri 28- 50 mins Inflation Chapter 22
Feb
9 Mon- 2-Mar Spring Break No classes
Fri to 6-
Mar
10 Mon- 9-Mar Spring Break No classes

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 Fri to 13-
Mar
11 Mon 16- 50 mins The AD/AS Model Chapter 24 Problem Set 7 due by 5 PM
Mar
11 Wed 18- 50 mins The AD/AS Model Chapter 24
Mar
11 Fri 20- 50 mins The AD/AS Model Chapter 24
Mar
12 Mon 23- 50 mins Exam 2 Review -- Problem Set 8 due by 5 PM
Mar
12 Wed 25- 50 mins Exam 2 --
Mar
12 Fri 27- 50 mins Keynesian Theory Chapter 25
Mar
13 Mon 30- 50 mins Keynesian Theory Chapter 25
Mar
13 Wed 1-Apr 50 mins Keynesian Theory Chapter 25
13 Fri 3-Apr 50 mins Neoclassical Theory Chapter 26 Problem Set 9 due by 5 PM
14 Mon 6-Apr 50 mins Neoclassical Theory Chapter 26
14 Wed 8-Apr 50 mins Neoclassical Theory Chapter 26
15 Mon 13- 50 mins Money and Banking Chapter 27 Problem Set 10 due by 5 PM
Apr
15 Wed 15- 50 mins Money and Banking Chapter 27
Apr
15 Fri 17- 50 mins Money and Banking Chapter 27
Apr
16 Mon 20- 50 mins Monetary Policy Chapter 28 Problem Set 11 due by 5 PM
Apr
16 Wed 22- 50 mins Monetary Policy Chapter 28
Apr

16 Fri 24- 50 mins Monetary Policy Chapter 28

Apr
17 Mon 27- 50 mins Fiscal Policy Chapter 30 Problem Set 12 due by 5 PM
Apr
17 Wed 29- 50 mins Fiscal Policy Chapter 30
Apr
17 Fri 1- 50 mins Fiscal Policy Chapter 30
May
18 Mon 4- 50 mins Assessment Problem Set 13 due by 5 PM
May
Exam 3 Review
18 Wed 6- Reading Day
May
18 Thu 7- Final Exams Begin See Final Exam
May Schedule below
19 Tue 12- Final Exams End
May

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Note: This course calendar is only intended as a guide, and deviations may become necessary. When deviations occur, announcements will be made
in class.

Examinations:
Final Exam Schedule:

1. ECON 222-C – Thursday, May 7, 2020 from 1:00 to 3:00 PM

Starfish retention software

We Care About Your Success! This course is part of a student success project between our institution and Starfish Retention Solutions. Throughout
the term, you may receive emails from Starfish® regarding your course grades or academic performance. Please pay attention to these emails and
consider taking the recommended actions. They are sent to help you be successful! In addition, your instructor may: (1) request that you schedule an
appointment by going to Starfish, or (2) recommend that you contact a specific campus resource, such as tutoring or counseling. You may also be
contacted directly by one of these services.

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