After watching the video clip from A Knight’s Tale, consider the effect of choosing consumption today versus consumption in the future. Using the PPC as a springboard for your analysis, what effect would forgoing consumption today in order to invest for tomorrow have on future production possibilities? Now consider the choices our government faces when it has limited tax revenues to fund the unlimited wants of its citizens. Describe some of the choices the government makes between consumption today and investment for tomorrow 

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Saint Leo University

ECO 201

Principles of Macroeconomics

Course Description:

An introduction to the study of the determination of income, output, employment, and prices in the U.S.

economy. Emphasis on fundamental economic concepts, gross domestic product and its components,

monetary and fiscal policy, and contemporary macroeconomic issues.

Prerequisite:

None

Textbooks:

The textbook information which appears on our Saint Leo Bookstore ordering site is as follows:
Saint Leo University. Economics Today (Custom). ISBN: 9781323789582

Your custom textbook was created from the following National text(s):
Economics Today (Complete): Miller, R. L. (2018). Economics today(19th ed.). New York, NY: Pearson

Education. ISBN: 9780134478777

Learning Outcomes:

1. Explain the concepts of scarcity, opportunity cost, and the role of incentives in decision making.

2. Explain the primary statistics used to measure income, output, employment, and prices in the

aggregate economy.

3. Develop the basic Aggregate Supply/Aggregate Demand (AS/AD) Model.

4. Describe Monetary and Fiscal Policy within the context of the AS/AD model.

5. Relate the concept of deficit to debt by comparing government expenditures to government revenues.

6. Recognize the importance of specialization by comparative advantage in the face of globalization.

7. Distinguish between the balance of trade and the balance of payments.

8. VALUES OUTCOME: Integrate the relevance of Responsible Stewardship in the context of

macroeconomic analysis.

Core Value:

Responsible Stewardship: Our Creator blesses us with an abundance of resources. We foster a spirit of

service to employ our resources to university and community development. We must be resourceful. We

must optimize and apply all of the resources of our community to fulfill Saint Leo University’s mission and

goals.

Evaluation:

Chapter Tests (55%)

Homework (10%)

Discussion (10%)

Writing Assignment (10%)

Final Course Assessment (10%)

Peregrine Formative Assessment (5%)

Tests:

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The graded chapter tests in this class will occur in Modules 2-8, with practice tests in Module 1. All tests

will be completed online, through MyEconLab which is already embedded within D2L. Tests will cover the

material in the textbook and AVPs. The online homework assignments should be completed prior to

taking the tests, as they will help to better prepare you. There is one test per chapter, regardless of the

number of chapters covered per module.

Homework:

All homework assignments will be completed online, through MyEconLab which is already embedded

within D2L. There is one assignment per chapter, regardless of the number of chapters covered per

module. You are allowed two attempts per question.

Discussion:

There will be one required discussion question per module. The discussion questions ask you to apply the

material you have learned in that module at a deeper level. While there is no specific length requirement,

discussions are graded based on the quality and understanding of your analysis. You are encouraged to

not only reference your readings, but to also conduct further research online to enhance your postings. For

full credit, you need a minimum one quality response to the question AND two quality responses to

classmates’ postings. Responses of “I agree” or “Great post!” do not count as quality posts.

Writing Assignment:

A written assignment is due in module 3. This assignment asks you to synthesize the concepts learned in

your readings with Saint Leo’s Core Values. The paper will be automatically run through Turnitin.com for

verification of authenticity. The paper must between 2-3 pages, double spaced, with size 12 font. Your

sources must be fully cited using the APA formatting style. A detailed rubric is also provided.

Final Course Assessment:

The Final Course Assessment will be taken in Module 8 in addition to the module test. It is a

comprehensive multiple-choice assessment of the learning outcomes from Modules 1-8.

Peregrine Formative Assessment:

At the start of this course you will be required to take a formative assessment, the Peregrine Formative

Assessment. The exam should take 60 to 90 minutes to complete, though you have up to three minutes

per question. You are permitted two 15 minute breaks. Once you click on the exam link inside the course

in D2L, you will be taken directly to the Peregrine login screen to enter your name and student ID. You

will earn 5% of your course grade for taking this assessment and will be automatically populate in the

ECO-201 course Gradebook.

The Formative Exam in this course is provided by Peregrine Academic Services. The results are used to

measure program-level learning outcomes as required by accreditation authorities. Please keep in mind

that this exam is an initial program-level assessment of your academic knowledge. As such, it is not

expected that you will necessarily know the answer to every question. It is a standardized test used by

many different colleges and universities. You can find detailed instructions via the link in the Course

Home menu.

Assessment of the Learning Outcomes

Learning

Outcome
Assessment Method(s)

1 Test question, Homework question, Final Course Assessment

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2 Test question, Writing Assignment, Homework question, Final

Course Assessment

3 Test question, Homework question, Final Course Assessment

4 Test question, Homework question, Final Course Assessment

5 Test question, Homework question, Final Course Assessment

6 Test question, Homework question, Final Course Assessment

7 Writing Assignment

Grading Scale: The following distribution will be used in assigning grades

(decimal points will be rounded to the nearest whole number at semester’s end):

Grade Score (%)

A 94-100

A- 90-93

B+ 87-89

B 84-86

B- 80-83

C+ 77-79

C 74-76

C- 70-73

D+ 67-69

D 60-66

F

0-59

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Course Schedule:

Module 1 The Nature of Economics: Scarcity and the World of Trade-Offs

Objectives

At the conclusion of this module, you will be able to:

• Discuss the differences between microeconomics and macroeconomics.

• Evaluate the role that rational self-interest plays in economic analysis.

• Distinguish between positive and normative economics.

• Explain why the scarcity problem induces individuals to consider

opportunity costs.

• Discuss why obtaining increasing increments of any particular good

typically entails giving up more and more units of other goods.

• Explain why the economy faces a trade-off between consumption goods

and capital goods.

Assignments

Items to be Completed: Due No Later Than:

Post an introduction to the class Thursday 11:59 PM EST/EDT

Read the assigned materials

Post an initial response to the Discussion Board Thursday 11:59 PM EST/EDT

Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete Peregrine Formative Assessment: Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 1 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 2 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 1 Test Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 2 Test Sunday 11:59 PM EST/EDT

Module 2 The Macroeconomy: Unemployment, Inflation, and Deflation

Objectives
At the conclusion of this module, you will be able to:

• Explain how to calculate the official unemployment rate and discuss the
types of unemployment.

• Describe how price indexes are calculated and define the key types of price

indexes.

• Distinguish between nominal and real

interest rates.

Assignments

Items to be Completed: Due No Later Than:

Read the assigned materials

Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT

Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 7 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 7 Test Sunday 11:59 PM EST/EDT

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Module 3 Measuring the Economy’s Performance

Objectives
At the conclusion of this module, you will be able to:

• Define gross domestic product (GDP) and understand the limitations of using

GDP as a measure of national welfare.

• Explain the expenditure and income approaches to tabulating GDP.

• Distinguish between nominal GDP and real GDP.

Assignments

Items to be Completed: Due No Later Than:
Read the assigned materials
Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 8 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 8 Test Sunday 11:59 PM EST/EDT

Submit writing assignment Sunday 11:59 PM EST/EDT

Read Economics Today, Chapter 8 Sunday 11:59 PM EST/EDT

Module 4 Real GDP and the Price Level in the Long Run and Classical and Keynesian

Macro Analyses

Objectives
At the conclusion of this module, you will be able to:

Describe the effect of economic growth on the long-run aggregate supply

curve.

Explain why the aggregate demand curve slopes downward, and list key

factors that cause this curve to shift.

Discuss the meaning of long-run equilibrium for the economy as a whole.

Describe the short-run determination of equilibrium real GDP and the price

level in the classical model.

Describe what factors cause shifts in the short-run and long-run aggregate

supply curves.

Evaluate the effects of aggregate demand and supply shocks on equilibrium

real GDP in the short run.

Assignments

Items to be Completed: Due No Later Than:
Read the assigned materials
Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 10 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 11 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 10 Test Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 11 Test Sunday 11:59 PM EST/EDT

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Module 5 Fiscal Policy and Deficit Spending and the Public Debt

Objectives
At the conclusion of this module, you will be able to:

• Use traditional Keynesian analysis to evaluate the effects of discretionary
fiscal policies.

• Discuss ways in which indirect crowding out and direct expenditure offsets

can reduce the effectiveness of fiscal policy actions.

• Describe how certain aspects of fiscal policy function as automatic stabilizers

for the economy.

• Explain how federal government budget deficits occur.

• Analyze the macroeconomic effects of government budget deficits.

• Describe possible ways to reduce the public debt.

Assignments

Items to be Completed: Due No Later Than:
Read the assigned materials
Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 13 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 14 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 13 Test Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 14 Test Sunday 11:59 PM EST/EDT

Module 6 Money, Banking, and Central Banking and Domestic and International

Dimensions of Monetary Policy

Objectives
At the conclusion of this module, you will be able to:

Define the fundamental functions of money and identify key properties that

any good that functions as money must possess.

Describe the basic structure and functions of the Federal Reserve System.

Determine the maximum potential extent that the money supply will change

following a Federal Reserve monetary policy action.

Describe how Federal Reserve monetary policy actions influence market

interest rates.

Evaluate how expansionary and contractionary monetary policy actions affect

equilibrium real GDP and the price level in the short run.

Understand the equation of exchange and its importance in the quantity

theory of money and prices.

Assignments

Items to be Completed: Due No Later Than:

Read the assigned materials

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Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 15 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 16 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 15 Test Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 16 Test Sunday 11:59 PM EST/EDT

Module 7 Comparative Advantage and the Open Economy

Objectives
At the conclusion of this module, you will be able to:

• Explain why nations can gain from specializing in production and engaging in
international trade.

• Understand common arguments against free trade and why nations restrict
trade.

• Identify key international agreements and organizations that adjudicate trade

disputes among nations.

Assignments

Items to be Completed: Due No Later Than:
Read the assigned materials
Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 32 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 32 Test Sunday 11:59 PM EST/EDT

Module 8 Exchange Rates and the Balance of Payments

Objectives
At the conclusion of this module, you will be able to:

• Distinguish between the balance of trade and the balance of payments.

• Outline how exchange rates are determined in the markets for foreign

exchange and what factors induce changes in equilibrium.

• Understand how policymakers can go about attempting to fix exchange rates.

Assignments

Items to be Completed: Due No Later Than:

Read the assigned materials

Post initial response to the Discussion Board Thursday 11:59 PM EST/EDT
Post responses to at least two classmates Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 33 Homework Sunday 11:59 PM EST/EDT

Complete MyEconLab Chapter 33 Test Sunday 11:59 PM EST/EDT

Complete Final Exam Sunday 11:59 PM EST/EDT

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Nikki Davis

The effects of choosing consumption today versus consumption in the future is while you have what you want/need for the moment, you will not have in the future. By choosing a little of consumption today and saving or investing a little, provides for consumption in the future. So by only using what we need now we can save and be able to consume in the future. This affects us daily as we chose whether to spend or save, for example for trips, new homes, or good retirements.   The government has a difficult battle when it comes to consumption today vs. consumption in the future. There are unlimited wants by the citizens and limited funds/ resources to provide. They must be good stewards of funds and make good long-term choices. So that may come down to restricting consumption today to make for more consumption in the future.

Manuel Garza

The question is asked if I gave up consuming today and invested for tomorrow what kind of future would I have. Well, to answer that, If I saved today and didn’t spend what I didn’t need to live, I would have more money for my future. That is saying I save in a standard savings account. I would be able to take trips in the future if I saved enough, having kids means I would be able to send them to college.  Now on a bigger scale like the government, they have the same chooses we have but on a bigger scale and with more people to complain when they don’t plan or spend money the way the people want it to be spent. The government cuts spending today to invest for tomorrow, they take existing money and invest it to make more money and they say no to the wants of its citizens. I said wants and not needs. An example would be cutting universal health care for all because there is no means to pay for everyone in the budget now. The government cuts defense spending to put money into Medicaid or social security. I don’t know if this example is true but to me, that would be an example of cutting spending now to help in the future.