Macroeconomics is concerned with the operation of the economy as a whole, with attention paid to such things as unemployment, inflation, and interest rates, determination of the level of national income, savings and investment, and the exchange rate and the current account of the balance of payments. The course develops a consistent model of the economy to explore the interactions of key macroeconomic markets and variables and to examine the impacts of different kinds of shocks to the economy and the role of government budgetary and monetary policy in influencing the level of economic activity.

Upon successful completion of this course, students should be able to:
• Understand the core theoretical models used by macroeconomists, in particular the Solow growth model and the AS/AD-model;
• Discuss the usefulness and limitations of these models;
• Explain and understand some of the associated empirical implications and policy issues;
• Critically read and understand many newspaper and magazine articles covering current economic events;
• Have a brief overview of some of the institutional features of the Australian economy and some overseas economies.

The final mark comprises 85% from ECON1102 plus the ECON7074 compulsory essay at 15%.

Three lectures a week, one seminar plus a tutorial.

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree.

Completion of or concurrent enrolment in ECON7073 Microeconomic Principles for Economic Policy.

Please see Course Website