ECN211 Macroeconomic Principles

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Latest Important Macro News!

Date Posted: 11/17/09

Wholesale Inflation....

Foreign Demand for US Assets

Falling U.S. Dollar....

Fed's Lacker....

Latest Important Macro News!

Date Posted: 11/16/09

Japan 3Q GDP...

Eurozone CPI...

German Manufacturing Jobs...

Fed Will Keep....

Latest Important Macro News!

Date Posted: 11/13/09

Trade Deficit....

Latest Important Macro News!

Date Posted: 11/04/09

Fed Pledges...

Latest Important Macro News!

Date Posted: 11/03/09

Australia....

This Time is Different (go to Nov 2, click on Program#4)

Latest Important Macro News!

Date Posted: 10/29/09

GDP Report...

Frontline, Close to Home (Watch!!!)

Latest Important Macro News!

Date Posted: 10/22/09

NBR

Latest Important Macro News!

Date Posted: 10/05/09

The NewsHour

60 Minutes

Latest Important Macro News!

Date Posted: 09/29/09

Madoff....

Latest Important Macro News!

Date Posted: 09/28/09

Social Security Story...

Emerging Markets Looking Better

Don't Believe "V" Shape

Latest Important Macro News!

Date Posted: 09/24/09

Bernanke Is Wrong??

Housing Remains Weak...

Great Recession....

Latest Important Macro News!

Date Posted: 09/17/09

US Net Worth.....

Watch: Collapse of Lehamn Brothers

Latest Important Macro News!

Date Posted: 09/11/09

The Investment Lessons of 9/11

Latest Important Macro News!

Date Posted: 09/10/09

Wall Street Crisis

Latest Important Macro News!

Date Posted: 09/08/09

Layoffs Toughest.....

The NBR-Special Report

"Square Root Shape"!!!!!!!

Latest Important Macro News!

Date Posted: 09/05/09

5 Days on The Brink!!!!!

The NBR

The News Hour

Very Hard Labor Day!!!

Latest Important Macro News!

Date Posted: 09/04/09

Bank CEOs Still Making Millions!!!

Pay Gap!!!!!

Latest Important Macro News!

Date Posted: 09/01/09

AZ Reports...

Latest Important Macro News!

Date Posted: 08/31/09

60 Minutes

Latest Important Macro News!

Date Posted: 08/28/09

Watch The FDIC Report

Latest Important Macro News!

Date Posted: 08/26/09

The News Hour

Latest Important Macro News!

Date Posted: 08/24/09

The News Hour

The News Hour

Front Line

Latest Important Macro News!

Date Posted: 08/21/09

AZ Figures

Latest Important Macro News!

Date Posted: 08/19/09

What Shape???

Latest Important Macro News!

Date Posted: 08/18/09

House of Cards!!!!!

Latest Important Macro News!

Date Posted: 08/14/09

The News Hour

Latest Important Macro News!

Date Posted: 08/04/09

Stiglitz

Consumer Spending Rises...

Banks Win, Taxpayers Lose

Bernanke on News Hour

Latest Important Macro News!

Date Posted: 07/13/09

"Another Bubble" in Housing???

Min Wage Going UP

60 Minutes and Madoff

Latest Important Macro News!

Date Posted: 06/16/09

Generation Next: Touch Choices

Higher Unemployment Hampers Recovery

Latest Important Macro News!

Date Posted: 06/10/09

Watch: Credit Crisis

Failed Banks

60 Minutes with Bernanke

Latest Important Macro News!

Date Posted: 05/08/09

The Big Lie.......

 

Latest Important Macro News!

Date Posted: 04/23/09

Where Does The Money Come From?

Latest Important Macro News!

Date Posted: 04/21/09

60 Minutes

Latest Important Macro News!

Date Posted: 04/11/09

Please Watch!!!!!

Latest Important Macro News!

Date Posted: 03/18/09

Ben Bernanke in 60 Minutes

Latest Important Macro News!

Date Posted: 01/12/09

I.O.U.S.A: The Movie

Latest Important Macro News!

Date Posted: 12/22/08

2008 in Review

Latest Important Macro News!

Date Posted: 12/16/08

Fed Press Release

Latest Important Macro News!

Date Posted: 11/21/08

Clear Financial Fraud

Latest Important Macro News!

Date Posted: 10/29/08

Fed Press Release

Latest Important Macro News!

Date Posted: 10/24/08

Foreclosure Alley

Latest Important Macro News!

Date Posted: 08/22/08

Best Colleges 2009

Latest Important Macro News!

Date Posted: 05/27/08

Careers with 2-Year Degree

Latest Important Macro New

Date Posted: 03/17/08

Fed Press Release

Latest Important Macro News

Date Posted: 03/13/08

Recession Has Arrived

Latest Important Macro News!

Date Posted: 01/30/08

Fed Press Releas

Latest Important Macro News!

Date Posted: 01/22/08

Fed Press Release

Latest Important Macro News

Date Posted: 12/11/07

Fed Press Release

Latest Important Macro News

Date Posted: 10/31/07

Fed Press Release

Latest Important Macro News!

Date Posted: 09/19/07

Fed Press Release

Latest Important Macro News!

Date Posted: 08/17/07

Fed Press Release

Latest Important Macro News!

Date Posted: 08/08/07

Fed Press Release

Latest Important Macro News!

Date Posted: 05/09/07

Fed Press Release

Latest Important Macro News!

Date Posted: 03/21/07

Fed Press Release

Latest Important Macro News!

Date Posted: 02/14/07

Fed Press Release

Latest Important Macro News!

Date Posted:  10/25/06

Fed Press Release

Latest Important Macro News!

Date Posted:  9/20/06

The Fed Press Release

Latest Important Macro News!

Date Posted:  8/08/06

Fed Press Release

Latest Important Macro News!

Date Posted:  7/06/06

Fed Press Release

Latest Important Macro News!

Date Posted:  5/10/06

Fed Press Release

Latest Important Macro News!

Date Posted:  3/29/06

Seven Ways To Start YOur New Job Right

Latest Important Macro News!

Date Posted:  3/28/06

Fed Press Release

Latest Important Macro News!

Date Posted:  1/31/06

Fed Press Release

Latest Important Macro News!

Date Posted:  12/13/05

Fed Press Release

Latest Important Macro News!

Date Posted:  11/01/05

Fed Press Release

Latest Important Macro News!

Date Posted:  09/20/05

Fed Press Release

Latest Important Macro News!

Date Posted:  08/09/05

Fed Press Release

Latest Important Macro News!

Date Posted:  06/30/05

Fed's Press Release

Latest Important Macro News!

Date Posted:  05/03/05

Fed Press Release

Latest Important Macro News!

Date Posted:  03/22/05

Fed Press Release

Latest Important Macro News!

Date Posted:  02/03/05

Fed Press Release

Latest Important Macro News!

Date Posted:  12/14/04

Fed Press Release

 

Chapters 1 & 2:  Extra Credit Questions

The text book for Macroeconomics will be supplemented with many articles handed out in class. Students are also expected to keep up with macroeconomic current events.

There will be many opportunities to earn extra credit points by answering questions in class about the handouts, current events and text book reading assignments.

The following television show is strongly recommended as a way to follow current events and then answer extra credit questions in class.


Nightly Business Report
PBS, M-F @ 5:30 pm

 

The following questions will be answered in class:

  1. Please give a real example in your life of when you had to make a choice. What did you do and what was the outcome?
    Looking back, how would you have done it differently?
    2 extra credit points

  2. More than a decade has passed since the introduction of MARKET ECONOMY into Russia's economy. Do you think it has worked?
    3 extra credit points

  3. Do you think that the state of the economy in the Clinton and Bush administrations has validated the conclusion of the Phillips curve?
    2 extra credit points

  4. Discuss main points of the handout titled "Economic Literacy".
    Relate this handout to Chapter 1 or 2.
    2 extra credit points

  5. Discuss main points of the handout titled "Is Economics a Science?".
    Relate this handout to Chapter 1 or 2.
    2 extra credit points

  6. Does the handout titled "Freedom and Equality" discuss economic Efficiency or Equity?
    What is the conclusion of this article?
    2 Extra credit points

  7. Relate the article "Crime and Economics" to Chapter 1.
    What is the conclusion of this article?
    2 extra credit points
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Chapter 4:  Extra Credit Questions

The following questions will be answered in class:
  1. In 1998, fuel prices plummeted to a 10 year low. Today they are at all time high.
    What factor(s) caused such big fluctuations?
    Show it graphically. Do the same presentation for fuel prices now.
    4 extra credit points

  2. Why do prices of accommodations go down in Summer and go up during the rest of the year in Arizona?
    Show it graphically.
    2 extra credit points

  3. Why doesn't the transportation industry offer discount rates during holidays?
    Show it graphically.
    2 extra credit points

  4. Even though the price of dining out at restaurants has gone up, more people continue to go to restaurants. The law of demand predicts the opposite, therefore the law of demand must be wrong.
    Please provide your comments and be able to support your position.
    2 extra credit points

  5. When did gold prices reach their highest at $700 per ounce?
    Why?
    What currently has been occurring to gold prices?
    Why?
    Show the above effects graphically.
    2 extra credit points

  6. After the September 11 tragedy, heavy losses have been inflicted on Travel and Hospitality industries. Airlines and Hotels are offering substantial discounts to travelers.
    Show and explain these industries' behavior in the context of Chapter 4.
    Relate their behavior to at least two principles of economics learned in Chapter 1.
    2 extra credit points
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Chapter 8:  Extra Credit Questions

The following questions will be answered in class:
  1. What are the effects of taxes on the markets?
    2 extra credit points

  2. What is "Dead Weight Loss" and what are its determinants?
    2 extra credit points

  3. What are the differences between Supply Side economics and Demand Side economics?
    What are their tools?
    2 extra credit points

  4. What are VAT Taxes?
    What are Consumption Taxes?
    2 extra credit points

  5. What are the effects of taxes on labor?
    2 extra credit points

  6. Why are taxes on local phone services less distorting than taxes on long distance services?
    2 extra credit points
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Chapter 10:  Extra Credit Questions

The following questions will be answered in class:
  1. What is the difference between Nominal GDP and Real GDP?
    Which one is more important and why?
    2 extra credit points

  2. What are the components of GDP from an expenditure and from an income point of view?
    From an expenditure point of view, which item is the biggest contributor to GDP?
    2 extra credit points

  3. What is a GDP deflator?
    What is it used for?
    2 extra credit points

  4. What has been the recent rate of growth in this country?
    How do you compare it to the last US Administration?
    Explain factors which have caused such radical changes in GDP, compared to the past.
    How and why the past and current growth rate has influenced the moetary policy in this country?
    1 extra credit point for each question

  5. In the past, what rate of growth the Fed was comfortable with?
    Why?
    2 extra credit points

  6. What is the concept of "Wealth Effect" and how the Fed in its monetary policy from mid 1999 until mid 2000 utilized it? How can you apply this concept to current economic conditions?
    4 extra credit points
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Chapter 11:  Extra Credit Questions

The following questions will be answered in class:
  1. What are CPI and PPI?
    Theoretically, what kind of relationship exists between the two?
    2 extra credit points

  2. What are core CPI and core PPI?
    Why is so much attention paid to the core values?
    2 extra credit points

  3. What was the finding of the 1996 Commission of Economists about the calculation of CPI?
    What are the advantages and disadvantages of the new calculation?
    2 extra credit points

  4. In 1997-1998, the word "deflation" was all over the country.
    What is deflation and what factors contributed to it in 1997-1998?
    Is deflation good or bad for the economy?
    Do you think that currently the U.S. economy is experiencing a deflationary period and can it be beneficial to current economic conditions?
    2 extra credit points

  5. If an index of the general price level is 200, what is the corresponding purchasing power of the dollar?
    1 extra credit point

  6. If the purchasing power of a dollar is 85 cents, what is the general price index?
    1 extra credit point

  7. From mid 1999 until mid 2000 the Fed increased interest rates six times. Name and explain the factors behind such actions.
    2 extra credit points
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Chapter 12:  Extra Credit Questions

The following questions will be answered in class:
  1. What is the link between taxes and growth?
    Quantify it.
    2 extra credit points

  2. What factors stimulated growth during the Kennedy administration?
    2 extra credit points

  3. What factors contributed to growth during the Reagan administration?
    2 extra credit points

  4. What is a capital gains tax?
    Why do growth promoters push for a capital gains tax cut?
    2 extra credit points

  5. What are the two schools of thought for "thriving the economy"?
    What is the conclusion of the article "What Drives Growth" in respect to "thriving the economy"?
    4 extra credit points

  6. In the past what has been the role of productivity on inflation?
    Did it work?
    What did happen in 2000-01 which refuted the old argument about the New Economy?
    Name factors.
    What did the Fed do in 1999-2000?
    Why?
    What arguments did the supporters of the New Economy have about the Fed's actions?
    What has happened since then?
    Name current factors and Fed's actions.
    1 extra credit point each

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Chapter 13:  Extra Credit Questions

The following questions will be answered in class:
  1. What is the traditional view about budget deficit and its effects? The Clinton Administration subscribed to the traditional view while conservatives don't.
    Present both arguments.
    4 extra credit points

  2. How did the Clinton Administration utilize the budget surplus?
    2 extra credit points

  3. What kind of budget (surplus, deficit) now the US has?
    Why?
    2 extra credit points

  4. Technically, how the US budget can be balanced?
    2 extra credit points

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Chapter 15:  Extra Credit Questions

The following questions will be answered in class:
  1. What are the problems associated with the unemployment figures released by the Bureau of Labor Statistics?
    3 extra credit points

  2. What has been the trend of unemployment since 2001?
    Why?
    2 extra credit points

  3. How much is the unemployment rate now and what sector of the economy has been affected the most?
    2 extra credit points

  4. What is the conclusion of the article "Are Jobs Inflationary?" about the relationship between unemployment and inflation? Who has made such a conclusion in this article and what is his relationship with this course?
    3 extra credit points

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Chapter 16:  Extra Credit Questions

The following questions will be answered in class:
  1. Give a definition for each of the following financial instruments and provide the rate of return (interest rate) paid currently on each of them: Large Certificate of Deposit; Banker's Acceptance; Repurchase Agreement; Eurodollars; Treasury Bills; Treasury Notes; Treasury Bonds.
    1 extra credit point each

  2. Theoretically, what kind of relationship has existed between M2, Nominal Income and Inflation? In 1990s, M2 lost its value.
    Why? Explain in detail.
    2 extra credit points

  3. All other things constant, what is the Fed's action on interest rates when economy goes into recession and when it goes through expansion?
    Why?
    2 extra credit points

  4. Define the Federal Funds Rate, Discount Rate, and Prime Rate. Give their current rates.
    1 extra credit point each

  5. What did the Fed do with interest rates from May 1999 to mid June 2000?
    Why? Quantify the rates in question 4 at that time?
    1 extra credit point each

  6. What the Fed has done with interest rates from 2001 up to now?
    Why? Explain the factors. Currently how much are the three rates in question 4?
    1 extra credit point each

  7. Why the Fed's actions in 2001 was some how ineffective in jump-starting the economy?
    Name and explain the factors.
    3 extra credit points

  8. Theoretically how the investment community (stock and bond holders) reacts to Fed's moves on interest rates?
    Why? Explain.
    2 extra credit points

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