Macroeconomics II

This subject is not offered in 2014.

Estimated total time commitment of 120 hours per semester

ECON90003 Macroeconomics

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For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject builds on the work covered in ECON90003 Macroeconomics. The focus is on providing a detailed coverage of particular topics of contemporary importance. Topics covered may include:

• Macroeconomic dynamics;
• Macroeconomic models of the open economy;
• Economic growth;
• Credit rationing;
• The monetary transmission mechanism;
• Irreversibility and investment;
• Problems in desinging and implementing macroeconomic policies;
• Analyses of unemployment and the labour market; and
• Consumption theory.

On successful completion of this subject students should be able to:

• Solve differential and difference equations and apply these solutions to explain possible macroeconomic outcomes;
• Apply basic dynamic techniques to macroeconomic models in order to solve for short-run and long-run outcomes;
• Apply the techniques of static and dynamic optimisation to solve macroeconomic problems;
• Apply dynamic macroeconomic models to explain likely economic outcomes in the short-run, in the long-run and in the transition from short-run to long-run equilibria;
• Use optimisation techniques to derive theoretical models that can explain the behaviour of economic agents;
• Integrate theoretical models based on optimising behaviour into full-scale models of the macro-economy;
• Explain some techniques economists use to empirically evaluate macroeconomic models.

• One 3-hour end of semester examination (60%)
• Four class assignments totalling approximately 4000 words, due weeks 3, 6, 9 and 12 (40%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Evaluation of ideas, views and evidence
• Synthesis of ideas, views and evidence
• Strategic thinking
• Critical thinking
• Application of theory to economic policy and business decision making
• Summary and interpretation of information
• Statistical reasoning
• Problem solving skills
• Collaborative learning and teamwork
• Written communication