Dr R Dixon. 316-102 Introductory Microeconomics. Second semester Two 1-hour lectures and a 1-hour tutorial a week. On completion of this subject students should be able to:

• explain the relationship between macroeconomics and microeconomics;
• explain the circular flow and national income concepts and identities, stock-flow distinctions and the main functional relationships used in macroeconomics;
• explain the link between aggregate demand and employment determination;
• understand elementary models of inflation, balance of payments and longer-run growth;
• read and critically evaluate popular literature on macro-economic policy issues;
• describe recent behaviour of key economic data for Australia.

An introduction to macroeconomic theory and policy. Economic aggregates such as aggregate production and employment, the general level of prices and inflation, the exchange rate, the volume of money and the balance of payments. An introduction to inter-industry analysis. Analysis particularly directed to models of an open economy such as Australia and current economic problems and policy issues. A 2-hour end-of-semester examination (80 per cent) and two written assignments of up to 2,000 words in total (20 per cent). One assignment may take the form of a class test. McTaggart D et. al. , Macroeconomics (Addison Wesley) or Stiglitz J, Principles of Macroeconomics (Norton)