Leader: Dr James Ang and Professor Russell Smyth

Offered

Caulfield First semester 2008 (Day)
Caulfield Second semester 2008 (Day)
Caulfield Second semester 2008 (Evening)

Synopsis

This unit uses aggregate demand and supply analysis as a tool for identifying and explaining the business cycle, output growth employment, inflation and the current account deficit. The investigation will illustrate the impact of the macroeconomy on decisions by firms and other economic agents in the economy and the effect of fiscal and monetary policies on business outcomes. Key strategic variables affecting decision making in the macro business environment are interest rates, inflation and the Australian dollar.

Objectives

The learning objectives of this unit are to:

• understand and evaluate the importance of factors that determine aggregate output, employment, interest rates, the average price level and the exchange rate;
• appreciate the influence of these factors on decision making in government, business and international trade.

Assessment

On-campus - Within semester assessment: 30%
Examination (2 hours): 70%
Distance - Within semester assessment: 20%
Examination (2 hours): 80%

Contact hours

3 hours per week

Prohibitions

ECF2200 or equivalent