UWA Business School

Unit Outline

Macroeconomics: Policy and Applications

ECON2234
SEM-2, 2015
Campus: Crawley
Unit Coordinator: Dr Sam Tang

All material reproduced herein has been copied in accordance with and pursuant to a statutory licence administered by
Copyright Agency Limited (CAL), granted to the University of Western Australia pursuant to Part VB of the Copyright Act 1968
(Cth).
Copying of this material by students, except for fair dealing purposes under the Copyright Act, is prohibited. For the purposes
of this fair dealing exception, students should be aware that the rule allowing copying, for fair dealing purposes, of 10% of the
work, or one chapter/article, applies to the original work from which the excerpt in this course material was taken, and not to
the course material itself
The University of Western Australia 2001

Page 1

Unit details
Unit title
Unit code
Availability
Location

Macroeconomics: Policy and Applications

ECON2234
SEM-2, 2015 (27/07/2015 - 21/11/2015)
Crawley

Credit points

Mode

Face to face

Contact details
Faculty
School
School website
Unit coordinator
Email
Telephone
Consultation hours
Lecturers

Business School
UWA Business School
www.business.uwa.edu.au
Dr Sam Tang
sam.tang@uwa.edu.au
6488 2931
Wednesdays, 2:00pm 4:00pm or by appointment

Name

Position

Email

Telephone Number

Sam Tang Unit Co-ordinator sam.tang@uwa.edu.au 6488 2931

Tutors

Unit contact hours

Lecture capture system

Online handbook
Unit website

Simon Lang
Amanda Meloni
Susan Pen
Xing Shi
Jill Trinh

simon.lang@uwa.edu.au
amanda.meloni@uwa.edu.au
susan.pen@uwa.edu.au
xing.shi@research.uwa.edu.au
jill.trinh@uwa.edu.au

Lecture time:

Wednesdays, 8:00am 9:00am

Thursdays, 11:00am 12:00pm
Lecture venue: Please refer to http://www.timetable.uwa.edu.au for the unit timetable.
LCS is implemented for this unit.
http://units.handbooks.uwa.edu.au/units/ECON/ECON2234
https://www.lms.uwa.edu.au/login

Unit rules
Prerequisites

ECON1102 Macroeconomics: Money and Finance

Unit description
This is an intermediate unit in macroeconomic theory and policy applications. This Level 2 unit is fairly broad, covering topics from
short-run economic fluctuations to long-run economic growth. Unlike the Level 1 macroeconomics, the Level 2 unit uses formal
macroeconomic models for analysing issues such as unemployment, inflation, growth and open economy.

Introduction
I welcome you to the second-year macroeconomics. This unit is of interest to anyone who likes to learn more about macroeconomic
issues such as economic growth, income inequality, productivity growth, unemployment, inflation, monetary and fiscal policies,
business-cycle fluctuations, and the exchange rate. In this unit, you will acquire the skill of using macroeconomic models as tools for
analysing current macroeconomic issues. The unit will prove to be interesting as well as intellectually stimulating.

Unit content
Macroeconomics is the study of the performance of the national economy and the policies used to improve that performance. The
study of macroeconomic issues is usually divided into short, medium and long run. The IS-LM model is widely used to study short-run
movements in the goods and financial markets. The aggregate supply and aggregate demand (AS-AD) model allows us to understand
the relationship between output and inflation, and the role of monetary and fiscal policy both in the short and medium run. In the long
run, macroeconomists are primarily interested in the question of how sustainable output growth can be achieved. We will cover the ISLM model, AS-AD model and neoclassical model of growth in this unit. In addition, we will introduce open economy in the models if time
permits at the end.

Unit goals
The aim of Macroeconomics: Policy and Applications (ECON2234) is to develop your knowledge of macroeconomics so that you can
use that knowledge to analyse important macroeconomic issues affecting you.

Educational principles and graduate attributes

Page 2

Learning outcomes
Students are able to (1) understand how equilibrium is determined in the goods and financial markets in a closed economy; (2) use the
IS-LM model to analyse the effects of fiscal and monetary policy on output and unemployment in the short run; (3) use the AS-AD
model to analyse the effects of government policy on the movements of goods, financial and labour markets; (4) use the Solows model
to understand the major forces of economic growth; and (5) analyse the effects of openness on goods and financial markets.

Unit schedule
Week

Week
commencing

Lecture topic

Text
reading

1
2
3
4
5
6
7

27 July
3 August
10 August
17 August
24 August
31 August
7 September

Introduction
National income accounting
Growth and accumulation
Growth and policy
Income and spending
Money, interest and income
Monetary and fiscal policy in the closed economy

Chapter 1
Chapter 2
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10

8
9
Mid-semester study break
10

14 September
21 September
28 September
5 October

International linkages
Aggregate supply and aggregate demand

11
12
13
Pre-examination study
break
Semester 2 examination
period

12 October
19 October
26 October
2 November

Aggregate supply: wages, prices, output and

unemployment
Policy basics
The anatomy of inflation
The anatomy of unemployment

Tutorial

Tutorial 1
Tutorial 2
Tutorial 3
Tutorial 4
Tutorial 5
(optional)
Chapter 11 Tutorial 6
Chapter 3 Tutorial 7
Chapter 4

Tutorial 8

Chapter 5 Tutorial 9
Chapter 17 Tutorial 10
Chapter 18 Tutorial 11

7 - 21 November

Teaching and learning responsibilities

Teaching and learning strategies
Teaching and learning evaluation
You may be asked to complete two evaluations during this unit. The Student Perception of Teaching (SPOT) and the Students Unit
Reflective Feedback (SURF). The SPOT is optional and is an evaluation of the lecturer and the unit. The SURF is completed online and
is a university wide survey and deals only with the unit. You will receive an email from the SURF office inviting you to complete the
SURF when it is activated. We encourage you to complete the forms as your feedback is extremely important and can be used to
make changes to the unit or lecturing style when appropriate.

Attendance
Participation in class, whether it be listening to a lecture or getting involved in other activities, is an important part of the learning
process. It is therefore important that you attend classes. More formally, the University regulations state that to complete a course or
unit students shall attend prescribed classes, lectures, seminars and tutorials. Where a student, due to exceptional circumstances, is
unable to attend a scheduled class, they are required to obtain prior approval from the unit coordinator to be absent from that class. Any
student absent from class without having had such absence approved by the unit coordinator may be referred to the faculty for advice
and may be required to withdraw from the unit.

Charter of student rights and responsibilities

The Charter of Student Rights and Responsibilities upholds the fundamental rights of students who undertake their education at the
University of Western Australia.
The University's charter of Student Rights and Responsibilities is available at
http://www.secretariat.uwa.edu.au/home/policies/charter

Student Guild contact details

Contact details for the University Student Guild can be found at http://www.guild.uwa.edu.au/. The Guild Education Officer is available to
provide assistance and advice on a range of issues.

ACE/AISE/CARS
Your academic orientation includes three online units which you must complete within the first 10 weeks of your enrolment:
AACE1000 Academic Conduct Essentials (ACE)
INDG1000 Indigenous Study Essentials
CARS1000 Communication and Research Skills
Page 3

Information for students with disabilities

The University has a range of support services, equipment and facilities for students with a disability. If you would like to receive advice
on
these
services
please
email uniline@uwa.edu.au
or
visit
http://www.studentservices.uwa.edu.au/information_about/disability_programme

Assessment
Assessment overview
Assessment information is provided in the unit outline.

Assessment mechanism
# Component

Weight % Due date

Relates To outcomes

1
2
3
4
5
6
7
8
9
10
11
12

2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
20%
60%

1-5
1-5
1-5
1-5
1-5
1-5
1-5
1-5
1-5
1-5
1-5
1-5

Tutorial quiz 1
Tutorial quiz 2
Tutorial quiz 3
Tutorial quiz 4
Tutorial quiz 5
Tutorial quiz 6
Tutorial quiz 7
Tutorial quiz 8
Tutorial quiz 9
Tutorial quiz 10
Mid-semester examination
Final examination

Week 3
Week 4
Week 5
Week 6
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
11 September, 2:00pm
Semester 2 examination period: 7 - 21 November

Assessment items
Item

Description

#1-Tutorial quizzes

Tutorials will start from Monday, 10 August 2015 (Week 3). Tutorial attendance and in class
class participation are required for Week 3-6 and Week 8-13. Tutorial classes for
Week 7 are optional due to the mid-semester test. Students will sit for a short quiz
for each required tutorial. Each quiz is worth 2% of the total assessment. Students
who fail to attend his/her own enrolled tutorial class will receive a mark of zero for
that class. Tutorial allocations can be made on-line at http://olcr.uwa.edu.au/.
The mid-semester examination will be held on Friday, 11 September at 2pm. The
test will be 45 minutes and comprised of multiple choice and short answer
questions. The examination venues will be announced later in class and on LMS.
Students should note this date and be available for the test. Since most students
are doing four subjects, it is more than likely that other tests/assignments will be
placed around about the same time. Students should take care and organise their
study schedule. A deferred mid-semester test will not be available in this Unit.
Instead, students who are given permission by the Sub-Dean to sit for the deferred
mid-semester test will have their mid-semester test mark reassigned to the final
exam.
A two hour examination held in the normal examination period. Material covered in
the mid-semester test may be re-examined. More information will be provided in
Week 12 and 13.

#2-Mid-semester
examination

#3-Final examination

Submission
Procedure

Academic literacy and academic misconduct

The University of Western Australia takes very seriously the matter of academic misconduct by students and has policies in place that
define misconduct (including plagiarism) and the penalties that apply. The consequences for misconduct can be severe, including
exclusion from the University.
All students are expected to make themselves aware of the definitions and the policies relating to academic misconduct, found at the
websites below, and with any additional requirements or stipulations that may be provided by individual coordinators.
http://www.teachingandlearning.uwa.edu.au/tl4/for_uwa_staff/policies/student_related_policies/academic_conduct

Appeals against academic assessment

The full regulations governing appeals procedures are available in the University Handbook available online at
http://rules.handbooks.uwa.edu.au/rules/student_rules/

Textbooks and resources

Page 4

Recommended texts
Dornbusch, R, Bodman, P., Fischer, S & Startz, R 2013, Macroeconomics, 3rd edn. McGraw Hill, NSW.

Other important information

Standard of assessment
The Business School must ensure that the processes of assessment are fair and are designed to maintain the standards of the School
and its students. The School follows the UWA marks and grades distribution:
Higher distinction
Distinction
Credit pass
Pass
Fail
Fail
Failed component

(HD)
(D)
(CR)
(P)
(N+)
(N)
(FC)

80-100%
70-79%
60-69%
50-59%
45-49%
0-44%

The scaling of marks to ensure comparability between classes is an acceptable academic practice. The School and Board of
Examiners have the right to scale marks where it is considered necessary to maintain consistency and fairness.

Quality assurance
Your assessed work may also be used for quality assurance purposes, such as to assess the level of achievement of learning
outcomes as required for accreditation and audit purposes. The findings may be used to inform changes aimed at improving the quality
of Business School programs. All material used for such processes will be treated as confidential, and the outcome will not affect your
grade for the unit.

Approved calculators for examinations

The University permits only the use of calculators in examinations when the calculator has an approved sticker and the examiner
permits their use. If the student does not have an approved sticker on their calculator, they will not be permitted to use the calculator.
Calculators can be approved at the Undergraduate Student Centre, the Postgraduate Student Centre or at Student Administration.
Further information is available on the Business School website at http://www.business.uwa.edu.au/students/assessments

Special consideration/alternative arrangements

If you are unable to attend a class, tutorial or examination due to circumstances beyond your control and are seeking an extension for
submission of an assignment or a deferred exam, please read valid reasons for special consideration
a t http://www.student.uwa.edu.au/life/health/uniaccess/special-consideration, complete the application form and submit at the
Undergraduate Student Centre or Postgraduate Student Centre.
PLEASE NOTE that deferred exams are not available in Summer School units.

Acknowledging Sources of Information and the Business School Policy on Plagiarism

Student Services provides an online plagiarism portal that includes a definition of plagiarism and a link to FAQ
http://www.studentservices.uwa.edu.au/ss/learning/online_services/plagiarism_portal
Turnitin' Originality Checking & Plagiarism Prevention is used in the Faculty to allow both educators and their students check written
work for improper citation or misappropriated content. More information about 'Turnitin' can be found at
http://turnitin.com/static/index.html

eBooks and open book exams

eBooks cannot be taken into an examination. Please check your exam details and purchase a printed version of any book you would
select to take into an open book exam.

Referencing
It is important that the referencing of any sources used in your written work is done properly, if only to substantiate the points you are
making in your assignment or project. The Harvard style is the preferred and there are some notes for guidance which have been
prepared by the library staff: Citing your Sources Harvard Style http://libguides.library.uwa.edu.au/harvard
The EndNote software package is a really good system for building up a database of references. Not everyone will want to invest the
time in using this system but you should consider it if you intend to build up resource materials or plan to undertake extensive research
in a particular area. The library staff have also developed a tutoring package: A Quick Guide to Using EndNote which provides the
basics for using EndNote with an essay http://libguides.library.uwa.edu.au/endnote

Last day to add a unit offered in a semester

From 2014, the final date to add a unit has been changed to the end of week 2 of the semester. For further information on important
dates for 2015, refer to http://www.student.uwa.edu.au/course/dates/important

Page 5