ECON A175: Macroeconomics

Course Outline of Record
Item	Value
Curriculum Committee Approval Date	03/20/2024
Top Code	220400 - Economics
Units	3 Total Units
Hours	54 Total Hours (Lecture Hours 54)
Total Outside of Class Hours	0
Course Credit Status	Credit: Degree Applicable (D)
Material Fee	No
Basic Skills	Not Basic Skills (N)
Repeatable	No
Grading Policy	Standard Letter (S)
Associate Arts Local General Education (GE)	OC Social/Economic Institutions - AA (OD2)
Associate Science Local General Education (GE)	OCC Social/Behavioral Sci - AS (OSD)
California General Education Transfer Curriculum (Cal-GETC)	Cal-GETC 4 Social & Behavioral Sciences (4) Cal-GETC 4B Economics (4B)
Intersegmental General Education Transfer Curriculum (IGETC)	IGETC 4 Social&Behavioral Sci (4) IGETC 4B Economics (4B)
California State University General Education Breadth (CSU GE-Breadth)	CSU D2 Economics (D2)

Course Description

An introduction to the principles and problems of macroeconomics. Covers economic concepts and principles as applied to markets, national income, unemployment, inflation, economic growth, fiscal and monetary policy, banking, the Federal Reserve System, and international economics. Enrollment Limitation: ECON A175H; students who complete ECON A175 may not enroll in or receive credit for ECON A175H. PREREQUISITE: Successful completion of a course at the level of elementary algebra or Appropriate OCC math placement. ADVISORY: ECON A170 or ECON A170H and Successful completion of a course at the level of intermediate algebra or Appropriate OCC math placement. Transfer Credit: CSU; UC. C-ID: ECON 202.C-ID: ECON 202.

Course Level Student Learning Outcome(s)

Apply fundamental economic concepts and standard economic models to explain the interaction of the major components of the American macroeconomy regarding relevant macroeconomic issues – i.e., output, employment, growth, inflation, and stabilization policy – in both the short and long run. (Knowledge)

Course Objectives

1. Explain the fundamental question of economics: making choices within an environment of limits.
2. Demonstrate how to use graphs to represent different types of economic behavior.
3. Demonstrate through the use of diagrams and explanation the concept of opportunity cost.
4. Perform cost/benefit analysis.
5. Explain the law of demand and the law of supply using diagrams and written explanation.
6. Identify and explain how the various forces cause shifts in demand and supply and integrate them into the overall demand and supply functions.
7. Using diagrams and written explanation, analyze different types of market conditions.
8. Describe the parameters of the macroeconomics.
9. Given a set of appropriate data, compute the national income of the economy using the flow of expenditures approach and the flow of income approach.
10. Explain the difference between the Classical and the Keynesian models of macroeconomics.
11. Identify the consumption function and explain what each of the variables within the function represent.
12. Identify the savings function and explain what each of the variables within the function represent.
13. Given appropriate data, compute the APC, APC, MPC, and MPS.
14. Analyze the impact that consumption and savings have upon the economy.
15. Use aggregate demand (AD) and aggregate supply (AS) curves to analyze different conditions and there upon the economy.
16. Explain how investment affects the national income of the economy.
17. Explain the multiplied effects of investment, consumption and government expenditures.
18. Explain how different levels of capacity utilization affect the economy and how they relate business cycle.
19. Describe the role of financial institutions as they conduct the process of intermediation.
20. Given appropriates data, analyze how the Federal Reserve uses its tools to conduct monetary policy.
21. Discuss the different theories and approaches to conducting monetary policy.
22. Identify the various sources and uses of funds that the government uses to conduct fiscal policy.
23. Given appropriate data, to analyze fiscal policy to determine the impact it will have upon the economy.
24. Identify the critical variables affecting the growth rate of the economy.
25. Identify the critical variables affecting the price level of the economy.
26. Identify the critical variables affecting the level of employment of the economy.
27. Given appropriate data, compute the comparative advantage between trading partners and the terms of trade.
28. Given appropriate data, be able to convert from one currency to another and discuss how changes in the rate of exchange affect relative prices between trading partners.
29. Explain how the foreign trade, direct investment, indirect investment and the foreign trade market are interrelated within the world economy.

Lecture Content

Basic concepts of economics Choices and limits Economic analysis Cost/Benefit Analysis Costs Relative prices Production Possibility Analysis Market Analysis Law of demand Law of supply Shifts in demand and supply Market behavior Macroeconomics National income accounts Macroeconomic identities Macroeconomic models Classical model Keynesian model Synthesis Income and Consumption Consumption function APC, APS, MPC, MPS Determinants of income Aggregate expenditure approach to national income Circular flow analysis The impact of investment Multiplier effects The impact of capacity upon the economy Analysis of business cycle Aggregate Demand (AD) and Supply Analysis (AS) Price levels and real output Forces that cause movement along the lines Forces that cause shifts in the curves Analysis of the economy using AD and AS curves Financial Institutions Role of financial intermediaries Supply of money Federal Reserve: structure, objectives and tools Demand for money Business demand Consumer demand Government demand Loanable Funds Market Federal Reserve Policy FED RULES: price, quantity, and commodity Impact of interest rates Capital Markets Money markets Capital markets Bond prices and interest rates Conducting Monetary Policy Quantity Theory of Money Liquidity Preference Neo-Monetarist Neo -Keynesian Rational expectations Fiscal policy Sources of funds Uses of funds Budgets: balanced, deficits, and surpluses Impact of tax policy Impact of debt Economic Policy Growth Prices Employment International Trade Comparative advantage Gains from trade Trade organizations World Markets Foreign trade market Direct investment market Indirect investment market Foreign exchange market

Method(s) of Instruction

Lecture (02)
DE Online Lecture (02X)

Instructional Techniques

Presentation of subject matter through: 1. Lectures are organized around Powerpoint slides or diagrams drawn on whiteboard and directed problem solutions. 2. Directed questions, open discussion and facilitated interaction of the class are used to provide perspective and understanding. 3. Students work both individually and in groups on assignments. 4. A detailed course syllabus is provided. 5. Detailed feedback is provided to all students on all required assignments. 6. All tests and quizzes are thoroughly reviewed in a timely manner.

Reading Assignments

2-3 hours per week. Reading assignments may include but are not limited to reading the textbook, journal articles, news articles, or other reading sources as determined by the instructor.

Writing Assignments

2-3 hours per week. Writing assignments may include but are not limited to short-answer exams/quizzes, essay exams/quizzes, a paper, written analysis of a reading assignment, and written analysis on a problem set. Writing assignments may be combined with a reading assignment or an out-of-class assignment.

Out-of-class Assignments

2-3 hours per week. Outside of class assignments may include but are not limited to problem sets, take-home assessments, essays, and papers. Out-of-class assignments may be combined with a reading assignment or a writing assignment.

Demonstration of Critical Thinking

Students are required to complete problem covering the objectives of the course. Quizzes are given at periodic intervals to determine if objectives are being attained. Short-answer essays and optional assignments from the Internet are given in a timely manner. Classroom participation is encouraged and feedback is provided. Three or more mid-term examinations are given at regular intervals. Comprehensive final consisting of both objective and written answers is given.

Required Writing, Problem Solving, Skills Demonstration

Eligible Disciplines

Economics: Masters degree in economics OR bachelors degree in economics AND masters degree in business, business administration, business management, business education, finance, or political science OR the equivalent. Masters degree required.

Textbooks Resources

1. Required Bade, Robin and Michael Parkin. Essential Foundations of Economics, 9 ed. New Jersey: Prentice Hall, 2021 Rationale: -

Other Resources

1. Economic Indicators, Council of Economic Advisors 2. The Wall Street Journal - optional

Academic Catalogs