Description:

Upon successful completion of this course, the student should be able to use economic terminology and principles to explain and discuss basic macroeconomic concepts, including supply of and demand for products, national income determination, money and banking, and monetary and fiscal policy. The student enrolling in this course should have successfully completed one year of high school algebra or the equivalent. (Macro) 3 hrs./wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Prerequisites: NONE

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. List a nation's economic resources, explain why they are scarce and why their use involves an opportunity cost.
2. Describe the goals of productive and allocative efficiency, list the ingredients for national economic growth, and express these concepts in the context of the Production Possibilities Model.
3. Summarize the characteristics of capitalism.
4. Demonstrate the use of demand and supply analysis in the determination of market prices.
5. Evaluate the pros and cons associated with capitalism and generally describe how government has attempted to address market failures.
6. Define gross domestic product and the other common national income accounts, as well as the different types of inflation and the different types of unemployment.
7. Define the business cycle, describe its different phases, its causes, and its consequences on national income, unemployment and inflation.
8. Compare and contrast the basic Keynesian and New Classical models of national income determination.
9. Define fiscal policy and evaluate its use as a tool designed to smooth out the business cycle from the perspective of the Keynesian and New Classical schools of thought.
10. Define money and the money supply, and explain how the money supply of a nation may change within a free enterprise banking system whether it is desirable or not.
11. Describe the institutional structure of the Federal Reserve System.
12. Define monetary policy and evaluate its use as a tool designed to smooth out the business cycle from the perspective of the Keynesian and New Classical schools of thought.
13. Define absolute and comparative advantage and explain which is relevant for international trade.
14. Summarize the benefits and costs associated with free and open international trade and why most economists are free trade advocates.
15. List and define the various types of international trade barriers.
16. Summarize and evaluate the arguments for and against protectionism.
17. Evaluate a fixed and floating exchange rate system.
18. Explain the impact of a change in a nation's exchange rate on its flow of exports and imports.
19. Describe a nation's balance of payments.

Content Outline & Competencies:

I. Basic Economic Concepts
   A. Define economics and describe what economists do.
   B. Contrast positive from normative economics.
   C. Contrast macroeconomics, microeconomics and normative economics.
   D. List economic resources and explain why they are scarce.
   E. Define opportunity cost, scarcity, productive and allocative
efficiency, economic growth, and illustrate these concepts in the context
of the Production Possibilities Model.
   F. List the ingredients for economic growth.
   G. Describe the Circular Flow of Income Model.
   H. Demonstrate the use of demand and supply analysis in equilibrium
price and quantity determination in any market.
      1. Define demand and derive a demand curve.
      2. Describe what causes an increase and decrease in demand and
express this graphically.
      3. Define supply and derive a supply curve.
      4. Describe what causes an increase and decrease in supply and
express this graphically.
      5. Graphically determine the equilibrium price and quantity within a
market and explain why this price and quantity traded is equilibrium.
      6. Illustrate graphically a surplus and a shortage and predict the
impact of a surplus and a shortage on the price within a market.
      7. Graphically illustrate and predict the impact of a change in
demand and/or a change in supply on the equilibrium price and quantity
within a market.
      8. Apply demand and supply analysis to product, resource and
loanable funds markets.
   I. Explain the relationship between the product, resource and loanable
funds markets.
   J. Evaluate the pros and cons associated with the capitalism's
market-oriented economy.
   K. Summarize how government has attempted to address the market
failures associated with capitalism.

II. The Causes and Consequences Associated with the Business Cycle
   A. Define and contrast gross domestic product (GDP), net national
product (NNP), national income (NI), personal income (PI) and disposable
income (DI).
   B. Define the different types of unemployment:
      1. Frictional (transitional) unemployment
      2. Structural unemployment
      3. Cyclical unemployment
   C. Define the different types of inflation:
      1. Demand-pull inflation
      2. Cost-push inflation
      3. Structural inflation
   D. Define the business cycle and describe its different phases (peak,
contraction, trough and expansion).
   E. Contrast the basic explanations for causes of the business cycle
according to the Keynesian and New Classical schools of thought.
   F. Describe the cause-effect chain relationship through which a change
in total spending (aggregate demand, aggregate expenditures) effects
inventories, GDP, employment and national income, as well as inflation
over the course of the business cycle according to Keynesians.
   G. Graphically illustrate a consumption function and explain what
causes shifts in the consumption function.
   H. Graphically illustrate an investment function and explain what
causes changes in the investment function.
   I. Graphically illustrate an equilibrium national income level and how
it may change.
   J. Calculate the simple Keynesian multiplier and explain its role and
its relevance in calculating changes in national income.

III. Fiscal Policy
   A. Define discretionary fiscal policy and describe how it is
implemented.
   B. Summarize discretionary fiscal policy options considered appropriate
by Keynesians over the course of the business cycle.
   C. Define non-discretionary fiscal policy and describe how it is
implemented.
   D. Demonstrate graphically non-discretionary fiscal policy and explain
how it adds stability to the business cycle.
   E. Evaluate the use of fiscal policy from the Keynesian and New
Classical perspectives.
   F. Contrast a fiscal deficit from public debt.
   G. Analyze the consequences of national debt for a nation.

IV. Monetary Policy
   A. Define money and the money supply.
   B. Explain how a single bank can change the money supply.
   C. Explain how an entire banking system can change the money supply.
   D. Calculate a simple money multiplier and explain its role in a
changing money supply.
   E. Explain the institutional structure of the Federal Reserve System.
   F. Define monetary policy and explain how it is implemented.
   G. Describe the tools of monetary policy and what is considered to be
its appropriate use from a Keynesian and New Classical perspective.
   H. Evaluate the effectiveness of monetary policy from a Keynesian
perspective.

V. International Economics
   A. Define and contrast absolute and comparative advantage and explain
which is relevant for international trade.
   B. Describe the benefits and costs to a nation of free and open
international trade.
   C. Explain why most economists are free trade advocates.
   D. List and define the various kinds of international trade barriers.
   E. Summarize and evaluate the arguments for and against protectionism.
   F. Evaluate a fixed and floating exchange rate system.
   G. Explain the impact of a change in a nation's exchange rate on its
flow of exports and imports.
   H. Describe a nation's balance of payments.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Minimum of three tests                            70-85% of course
grade
Class attendance, projects, reports and/or papers 15-30% of course grade
                                                    100%
                                                    
The student's course grade will be determined using the following grading
scale:

   A = 90-100% of total available points
   B = 80- 89% of total available points
   C = 70- 79% of total available points
   D = 60- 69% of total available points
   F = <   60% of total available points

Caveats: NONE

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.