Subject details

Students who successfully complete this subject should 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
  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.
  • Topics
    • The Quantity Theory of Money
    • National Income
    • Monetary System
    • Inflation and interest rates
    • Unemployment and Labor market
    • Saving and Investment
    • The international Flows of Capital and Goods
    • Exhange 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

Entry Requirements

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


If you have completed both ECO10002 and ECO10003 you cannot enrol in ECO10004 and ECO20004

Special requirements

No special requirements

This subject aims to provide students an understanding of both short-run topics in macroeconomics, such as the business cycle, economic fluctuations and stabilisation 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.

  • Assignment 1 - Assignment — Group (20-30%) (0%)
  • Assignment 2 - Invigilated Exam — Individual (40-60%) (0%)
  • Assignment 3 - Mid-study period test — Individual (20-30%) (0%)

Textbooks are subject to change within the academic year. Students are advised to purchase their books no earlier than one to two months before the start of a subject

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