Gregory Stutes

Office: 374 MacLean Hall
Office Hours  MWF 2:00-4:00 and  T 9:00-11:00

Telephone: 477-4027

This course will introduce students to economic issues, tools that economists use to analyze these issues, and the associated public policy concerns. First, we will review economics in general and some of the tools of economists. Using these tools, we will overview how markets work and examine some economic problems. We will address national incomes and measurement in the macroeconomy so that we may monitor developments in the economy as a whole. Next, we will describe the forces that in the long-run determine key variables, including growth in GDP, saving, investment, real interest rates, and unemployment. In the last major section of our class we introduce the monetary system and examine how money and the Fed affect the long-run behavior of the price level, inflation rate, and other nominal variables. Throughout the course, I will relate our discussion to topics in United States history. (This is my area of interest.) However, if you know a current event that relates to our studies, please draw my attention to it. Lastly, the most important goal we should set is to have fun. We are trying to make some sense out of this crazy world; it is a difficult task, but a very interesting one.

The course will be presented in a non-technical manner. Mathematically speaking, the basic analytical tools will be simple algebra and graphic analysis. Lectures will follow the course outline and the textbook. The reading material will provide excellent guidance for practically all of the lecture material. However, not every topic in the lecture will appear in the textbook, and not every page of reading will be covered in class.

The goals and objectives of this course focus on what you the student should be able to do once you have completed this course. The main goal is the following: students can think effectively for themselves about economic issues. Additional goals are the following

• exhibit an awareness of, and continuing interest in, the major economic issues of society;
• demonstrate a firm grasp of the few basic principles and analytical concepts necessary to think intelligently about economic issues; and
• develop an independent ability to apply these analytical tools in thinking about economic issues.

Midterm I         150
Midterm II        200
Midterm III       200
Midterm IV       300
Homework        150
                         --------
                          1000

Any student in the course who has a disability that may prevent him/her from fully demonstrating his/her abilities should contact me personally as soon as possible so we can discuss accommodations necessary to ensure full participation.

Any student who will miss a class in which an assignment is due or a test is to be taken due to the observance of religious holiday must notify me at least one week prior to the date of the class missed to avoid late or to receive a makeup test.

Many of you may believe that introductory economics will provide clear and irrefutable answers to socioeconomic problems. If you share this belief, this course will sadly disappoint you. This course cannot provide definitive answers for three reasons:

economics simple does not have the answers,

definitive answers require very sophisticated analytical tools beyond the level of introductory economics,

definitive answers transcend economics.

Rather than a set of answers ready to be taken off the shelf, economics is a way of thinking about problems. Economics is a process of straight thinking -- "thinking like an economist."

Previously you were required to learn concrete stuff -- memorize facts and/or specific experiences. Economics demands a higher more "formal" level of thinking. In this course, you will need to reason analytically about hypotheses, to manipulate mentally abstractions, to understand contrary-to-fact situations (i.e. hypothetical situations), and to understand counter-intuitive results.

(2) Beware that economic concepts are abstract.

Because economic concepts are abstract, they may appear esoteric and mystifying. However, economics requires abstract concepts in order to develop a strong framework of analysis that is flexible enough to apply to various scenarios in numerous settings.

(3) Economics requires a different approach to learning.

Since the essence of economics is analysis, you cannot simple memorize stuff. You must practice the art of developing the economic framework of analysis and applying it to a broad field of subjects. In other words, you must "rehearse" the framework of analysis, not solely by remembering it but by examining its logical structure and applying it.

(4) Avoid acquiring inert knowledge.

Unless you can apply knowledge it is useless. Thus, exams will require you to apply knowledge to new situations. Do not expect to simply regurgitate facts on the exams.

(5) Stress the process of problem solving.

By stressing the process of problem solving, you will be better able to transfer economic concepts to other contexts, classes, and future employment.