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Introduction to
Macroeconomics
a learning guide
(3 credit hours)
Course designed by
Vandana Rao-Dev
Associate Professor of Economics
Division of Business and Economics
Indiana University East
Course revised by
Manoj Atolia and
James Self, Lecturer,
Department of Economics,
Indiana University Bloomington
Indiana University
School of Continuing Studies
Independent Study Program
Copyright © 2002, 2005 by the Trustees of Indiana University
Important Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Study Materials Order Form
Lessons
1 What Is Economics? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
4 Using Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Economics E202
Introduction to
Macroeconomics
Welcome to Economics E202 Introduction to Macroeconomics. This is
your learning guide for the course. It will familiarize you with basic
macroeconomic concepts and indicators and guide you through
macroeconomic models and policy issues. This learning guide contains ten
lessons. Eight of the lessons are study lessons (lessons 1–4 and 6–9) and
two of the lessons (5 and 10) offer preparation for the midterm and final
exams.
Required Materials
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Introduction
Economics E202
If you would like, you may access the textbook’s companion Web site at
http://www.myeconlab.com/parkin/parkinmacro.html. Please note that
your instructor will not be issuing a course ID for the Parkin Web site. See
the front of your textbook for more information about the textbook’s Web
site. If you have problems with the textbook’s Web site, please contact the
textbook publisher.
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Introduction
Economics E202
Course Structure
1. First, review the objectives. They provide the focus for your learning.
3. Next, read the assigned textbook chapters and work through the
study guide exercises. It’s good practice to highlight important points
and make notes in the margins as you read.
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Introduction
Economics E202
4. When you’ve finished your work in the textbook and study guide, go
to the chapter outline in the learning guide and use it to prepare your
class notes. This outline will create a summary of the chapter.
Sometimes, instead of an outline, you will find a self-test on the
material.
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Introduction
Economics E202
Grades
Grading Scale
96.5–100% A+
91.5–96.4 A
87.5–91.4 A–
84.5–87.4 B+
80.5–84.4 B
76.5–80.4 B–
73.5–76.4 C+
69.5–73.4 C
66.5–69.4 C–
63.5–66.4 D+
59.5–63.4 D
54.5–59.4 D–
0.0–54.4 F
Important: You must earn at least a D– average on the exams to pass the
course. In other words, you must earn at least 174.4 points out of 320 total
exam points to pass the course. Even if your lesson grades are excellent,
you will not pass the course unless you fulfill this requirement.
Plagiarism
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Introduction
Economics E202
With each lesson you are required to submit an assignment cover sheet.
Every assignment cover sheet has a space for your questions and
comments; you are strongly encouraged to use this space. If problems arise
between assignments, you can write to your instructor at the Independent
Study Program. Many instructors can be contacted via e-mail or reached
by telephone during established office hours. To learn your instructor’s
e-mail address and/or office hours, please refer to the contact information
on the back cover of this learning guide.