The US Economy 4219-AW108
The course consists of eight teaching modules (blocks), which are as follows;
BLOCK 1: Introduction to the course: the subject matter, the method, and the course organization. Exam (Final Test) requirements. An overview of the US Economy today and one century ago.
BLOCK 2: How the economy works. Basic concepts of (macro) economics: economic agents; sectors of the economy, their functions, and the links between them (circular flow of goods and services); types of enterprises; economic functions of the government.
BLOCK 3: Basic numerical characteristics of the US enterprises, households (and broader: the US population), financial institutions, and the government (the budget). Sources of statistical data on the above.
BLOCK 4: System of National Accounts [SNA] (basic concepts, history, the NBER - Wesley Mitchell and Simon Kuznets, the SNA and its NIPA (US) version - basic contemporary categories);, a plumbing diagram of the US economy. Nominal vs. real values. GDP per capita as a measure of welfare - actual WB statistics: US vs. other countries. GNI/GDP growth vs. fluctuations. Long-run growth and the business cycle. The Great Depression 1929-33.
BLOCK 5: Government. Its economic functions. The budget. Taxation. Regulation vs. deregulation of the economy. Antitrust laws. Poverty.
BLOCK 6: Firms (including stock exchanges) Various forms: single proprietorships, partnerships, corporations [including sub-S corporations] - their characteristics, including numbers. The Fortune and Forbes lists of US firms. Stock exchanges and commodity exchanges.
BLOCK 7: Labor, employment & unemployment, unions. The labor market. Supply and demand for labor. Employment rate, participation rate and unemployment rate -definitions and actual values for the US economy (at present and historically). Trade Unionism in the US - its history and present significance. US government stance toward trade unions (including US legislation) over time).
BLOCK 8: Money & Banking. Money origins and its functions. Evolution of its forms. History of the American money and banking system. Central banking in the US. The Federal Reserve System today. Commercial banks. Other financial institutions, and their role in the financial crisis 2007-2009 in the US. Measures of money supply. The economic recession and the Fed.
Type of course
Prerequisites (description)
Learning outcomes
Learning outcomes/effects:
1. KNOWLEDGE
After successfully completing the course the student should:
* Know the basic jargon of economics in order to properly describe economic facts and processes pertaining to the US economy.
* Understand the difference between the public choice and private choice, as two basic resource allocation mechanisms - and apply this knowledge to the US economy case.
* Describe the basic characteristics and problems of the following sectors/markets of the contemporary US economy: the government and its budget, the producers (firms), the labor market, financial institutions and firms. Both now and in the historical past.
* Know a number of important economic institutions of the US financial and banking world – including leading stock/commodity exchanges (New York & Chicago).
* Know a number of important historical and contemporary figures of American economy and economics – and appreciate their achievements.
2. SKILLS
After successfully completing the course the student should:
* Be able to identify basic sectors of the US economy (as of today) and characterize them numerically.
* Be able to measure the flows between these sectors, i.e. know the basic measures of US National Income and Product Accounts (NIPA).
* Easily find sources of good statistical data describing the US economy and its parts, retrieve data from them, manipulate, understand and use them in practice.
3. SOCIAL COMPETENCES
After successfully completing the course the student should:
* Be aware of differences of opinions among economists as to a number of important economic problems of the US economy – now and in the historical past, and especially the role of the government versus market.
* Be aware of the costs of particular economic and social policies pursued by the US government(s) – and what would be their incidence.
* Be open to different views of his/her discussants on particular economic problems of the US economy.
* Accept the fact that economists only propose and politicians dispose.
* Be able to apply knowledge of the US economy to discuss and possibly solve issues appearing in his/her studies of other aspects of the US society, as well as in his/her future professional work.
Assessment criteria
Final grade given on the basis of two written tests/exams: a Midterm (a 30% weight) and a Final (a 70% weight). The Final will be comprehensive. Both exams may contain multiple-choice, true-false, as well as simple graphical and open questions. 50% of the combined total will be required to pass. The make-up will have the same format. Academic honesty during the exams will be strictly enforced.
Midterm Test (written) - on the basis of the lectures and the assigned literature, including reasonable general knowledge of statistical data quoted in the course will be given in the middle of the semester. Exact date will be announced ahead of time.
Final Test (comprehensive; in the exam session): written - on the basis of the lectures and the assigned literature, including reasonable general knowledge of statistical data quoted in the course.
Practical placement
N.A.
Bibliography
Readings:
Outline of the U.S. Economy, USDS, Bureau of International Information Programs, 2012 edition.
You may google it easily or just retrieve it from : http://photos.state.gov/libraries/amgov/30145/publications-english/120321_Outline_US_Economy_2012_CX2.pdf
Alternatively, you may use a slightly altered version placed at about.com (it has a number of outside links , as well): http://economics.about.com/od/freeeconomicstextbooks/a/us_economy.htm
Also, we will be consulting some excerpts from:
J. Gwartney, R. Stroup, R. Sobel, D. Macpherson, Economics. Private and Public Choice, Thompson / South Western, any edition from 21st century would do (selected chapters will be assigned in class).
Additional readings: Visit the course e-learning module on the Moodle on a regular basis.
Also, students should visit and browse through several excellent websites giving you access to plethora of information. Among others, one should google out and visit the following ones:
- 1. US Bureau of Economic Analysis (of the US Department of Commerce)
- 2. US Bureau of Labor Statistics (of the US Department of Labor)
- 3. US Census Bureau
- 4. GPO Gate [General Publications Office - USA]
- 5. FRED [Federal Reserve Bank Economic Database]
- 6. The Forbes [a magazine]
- 7. The Fortune [a magazine]
- 8. The Wall Street Journal [an economic daily]
- 9. NYSE [the New York Stock Exchange - Euronext]
- 10. http://www.usgovernmentspending.com/ [good source of data and graphs on US gov’t]
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: