1. Introductory Macroeconomics Fall 2013 Dr David Penn Associate Professor of Economics and Director of the Business and Economic Research Center

2. Goals  We will learn about:  How markets work  The structure of the macro economy  Economic growth  The role of money and financial institutions  Why we have periods of high unemployment  Economic policy  International trade and capital flows

3. Tools  Macroeconomics by Krugman and Wells  Desire to Learn  Syllabus  Class notes  Articles and material  Online quizzes (www.saplinglearning.com)www.saplinglearning.com  http://vimeo.com/72453315 http://vimeo.com/72453315  Exams  Assignments  Current events

4. Evaluation

5. Keys to success  Attend class  Keep up with reading  Keep up with materials on D2L  Keep up with Sapling quizzes  Ask questions  See me if you are befuddled (as soon as possible)

6. Why am I here? Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers.

7. Long-term costs and benefits  Cost:  Tuition, room, food: $60,800 (no scholarships, in-state)  Benefits:  $414 more weekly pay compared with high school diploma ($21,500 more pay per year)

8. Long-term costs and benefits  Net benefits (40 year working life)  $470,224 over and above average earnings with a high school diploma, after paying college expenses (four years)  Very high rate of return  Assumes annual benefits = $21,500 * 2/3  Source: me

9. College degree  An investment in the future  Requires short-term sacrifice (and some long-term sacrifice)  College grads are better able to  Grasp the big picture  Deal with problems analytically  Deal with problems creatively  Communicate  Become involved citizens  Pay taxes

10. College degree  You are in the right place at the right time!

11. To do 1. Sign up for Sapling Learning (www.saplinglearning.com) 2. Work through the Sapling quiz demo (Using the tools in Sapling Learning) by 5:00 Thursday 3. Read Chapter 1 by Wednesday 4. Take quiz 1 in Sapling by 5:00 Friday 5. Read Chapter 2 by Friday class