Ms Cathy Fletcher
6 points · Two 1-hour lectures and one 1-hour tutorial per week · Pre-/corequisite: ECW1000
Objectives On completion of this subject students
should have a conceptual understanding of the nature of general equilibrium
relationships and of their microeconomic underpinnings; understand the mutual
dependence between financial transactions and trade in goods and services,
between the accumulation of foreign debt and the domestic income-expenditure
balance; be acquainted with the components of the aggregate economic structure,
and their role in the Australian economy; be familiar with the nature and
causes of economic growth and of the cyclical patterns of inflation and
unemployment; be able to assess and critically evaluate government economic
policies; be able to proceed to the study of other economics subjects which
have the introduction to economics as a prerequisite.
Synopsis The scope of macroeconomics and its microeconomic
under-pinnings; aggregation problems; distinction between partial equilibrium
and general equilibrium analysis; the circular flow of income as a general
equilibrium model; the mutual dependence of financial flows and flows of goods
and services; sectoral composition of aggregate demand: households and
consumption/saving behaviour; business and investment behaviour; government
spending and taxation; external balance and determination of current and
capital accounts; labour market and aggregate supply; money, credit, and the
conduct of monetary policy; inflation and unemployment; macroeconomic effects
of deregulation in Australia: exchange rates and financial institutions.
Assessment Written (class tests and assignments): 40% · Examination (2 hours): 60%
Back to the 1999 Business and Economics Handbook