208-117 Macroeconomics

207-101 Economics for Resource Use or 316-102 Introductory Microeconomics

This subject introduces macroeconomic theory and policy including aggregate demand and supply analysis as a tool for identifying and explaining the business cycle, output growth employment, inflation and the current account deficit. The emphasis will be the impact of the macroeconomy on decisions by firms and other agents in the economy and the effect of fiscal and monetary policies on business outcomes. Key strategic variables, which pertain to decision-making in the macro business environment, will be interest rates, inflation and the Australian dollar.

Topics include: Aggregate production and employment, prices and inflation, the exchange rate, the value of money and balance of payments, open economics and current economic problems and policies.

A 3-hour end-of-semester examination (50%), a 1500-word assignment (20%), and a 1.5-hour written mid-semester class test (20%).