Macroeconomic Policy - 2017

Unit summary

ECO20004

  • Level of Study: Undergraduate Level 2
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP, HECS-HELP
  • Availability for 2017: SP3
  • Assessment: Case Study - Group task (20-30%) , Invigilated Exam - Individual (50-60%) - Learn more

Unit provided by

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2017 Fees
AUD$
Domestic 2,893.00
HECS 1,324.00
International 3,143.00

The aim of the unit is to provide students with an in-depth understanding of contemporary macroeconomic theories and their policy prescriptions in a changing world. This unit is an intermediate level unit in macroeconomic theory and policy, encompassing a balance of both the short- and long-run topics. Inflation and unemployment outcomes in the macroeconomy are examined within an aggregate demand/aggregate supply framework. Further topics include: growth models, theories of consumption and investment; the supply and demand for money, IS/LM analysis, the Mundell-Fleming model, the Taylor rule, alternative perspectives of stabilisation policy, and government debt and budget deficits.  Students will learn how to analyse the interplay between fiscal policies of treasuries and the monetary policies of central banks and how they affect business and financial decisions in the real world situations. ECO20004 is a useful unit for students who want to major in economics, accounting, finance, law and other business and science disciplines as it provides a coherent framework for considering many topical issues concerning the operation of macroeconomy in a contemporary international setting. 

Please note: assessment values are indicative only, details will be advised at the start of the unit.

On successful completion of this unit, students will be able to:

  1. 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
  2. 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 in macroeconomics
  3. Evaluate the monetary and fiscal policies aimed at stabilising the economy utilising the aggregate demand and supply framework
  4. Work collaboratively in a team environment, to achieve set goals related to the building of knowledge of economics.
  • Case Study — Group task (20-30%)
  • Invigilated Exam — Individual (50-60%)
  • Mid-study period test — Individual (20-30%)
For more information on invigilated exams see Exams and results

Mutually exclusive units

If you are studying towards a degree, you should be aware that this unit is mutually exclusive with the following unit(s):

Please note that if you have already studied any of the mutually exclusive unit(s) listed above, you should check the Course Structure of your degree to see whether you will be able to get credit for this unit, as well as the unit(s) previously studied, towards that qualification.

Mandatory prerequisites

You must have successfully completed the following unit(s) before starting this unit:

If you have completed equivalent study at another university, please contact a Student Advisor for advice.

  • Broadband access

This unit addresses the following topics.

NumberTopic
1The Quantity Theory of Money
2The Nominal Interest Rate and the Demand for Money
3Saving and Investment in a Small Open Economy
4Exchange Rates
5Job Loss, Job Finding, and the Natural Rate of Unemployment
6Real-Wage Rigidity and Structural Unemployment
7The Facts about the Business Cycle
8The Goods Market and the IS Curve
9The Money Market and the LM Curve
10The Short-Run Equilibrium
11The Interaction between Monetary and Fiscal Policy
12Theories of consumption and investment
13Mundell-Fleming model
14Taylor rule
15Tradeoff Between Inflation and Unemployment in the Short Run
16Theory of Aggregate Supply
17Inflation, Unemployment, and the Phillips Curve
18Should Policy Be Conducted by Rule or Discretion?
19Government Debt and Budget Deficits

Each unit offered through OUA provides students with unit information that includes assessment topics and due dates, policy information and contact numbers for university support and academic staff. Study materials will also clearly outline each week's topic, readings, student activities and the format of all assessment.

This unit is a core requirement in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbook information for this unit is currently being updated and will be available soon. Please check back regularly for updates. Alternatively, visit the The Co-op website and enter the unit details to search for available textbooks.

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