Overview

This unit aims to provide students an understanding of both short-run topics in macroeconomics, such as the business cycle, economic fluctuations and stabilization policies, and long-run topics, such as economic growth, the natural rate of unemployment, persistent inflation, and the effect of government debt. Students also learn how to use various macroeconomics models when analysing economic events and public policies.

Requisites

Prerequisites
ECO10004 Economic Principles
Teaching periods
Location
Start and end dates
Last self-enrolment date
Census date
Last withdraw without fail date
Results released date

Learning outcomes

Students who successfully complete this unit will be able to:

  • Analyse current macroeconomic policy issues such as GDP growth, government debt, budget and current account deficits, inflation-targeting policy and changes in the cash rate
  • Understand macroeconomic theories at an intermediate level focusing on both the short- and long-run topics; together with popular debate and specific policies and their outcomes
  • Evaluate the monetary and fiscal policies aimed at stabilising the economy utilising the aggregate demand and supply framework
  • Work collaboratively in a team environment, to achieve set goals related to the building of knowledge of economics

Teaching methods

Hawthorn

Type Hours per week Number of weeks Total (number of hours)
On-campus
Class		2.00 12 weeks 24
Online
Lecture		1.00 12 weeks 12
Unspecified Activities
Independent Learning		9.50 12 weeks 114
TOTAL150

Swinburne Online and OUA

Type Hours per week Number of weeks Total (number of hours)
Online
Directed Online Learning and Independent Learning		12.50 12 weeks 150
TOTAL150

Assessment

Type Task Weighting ULO's
AssessmentIndividual 40 - 60% 1,2,3 
AssignmentGroup 20 - 30% 1,2,3,4 
QuizIndividual 20 - 30% 1,2,3 

Content

 

  • National Income
  • Monetary System
  • The Quantity Theory of Money
  • Inflation and Interest Rates
  • Unemployment and Labor Market 
  • Saving and Investment
  • The International Flows of Capital and Goods
  • Exchange Rates
  • The Facts about the Business Cycle
  • The Goods Market and the IS Curve
  • The Money Market and the LM Curve
  • The Short-Run Equilibrium 
  • The Mundell-Fleming Model and The Exchange Rate Regime
  • Theory of Aggregate Supply
  • Inflation, Unemployment, and the Phillips Curve
  • Stabilization Policies
  • Financial System and Financial Crisis
  • Government Debt and Budget Deficits

 

Study resources

Reading materials

A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.