Faculty of Business and Economics

Monash University

Postgraduate - Unit

This unit entry is for students who completed this unit in 2014 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

FacultyFaculty of Business and Economics
Organisational UnitDepartment of Economics
OfferedClayton First semester 2014 (Day)
Clayton Second semester 2014 (Day)
Coordinator(s)Dr Siew-Ling Yew (Semester 1); Dr Michael White (Semester 2)


This unit focuses on macroeconomic theory and policy; managing aggregate demand; economic growth and fluctuations. Content covers the following topics in detail:

  • open-economy IS-LM framework and AD-AS framework
  • principles of monetary and fiscal policy and problems of implementation
  • alternative theories of aggregate supply; imperfect information; labour market rigidities
  • explaining and correcting inflation and unemployment.

This unit provides an intermediate level treatment of macroeconomic theory and policy. Its central focus is the analysis of the factors and processes that determine the macroeconomic performance of a nation as reflected in such indicators as aggregate output, employment, the price level and exchange rate, and the balance of payments.

Implications of this analysis for the formulation of national economic policy are explored with particular application to Australia.


On completion of this unit students should be able to:

  1. analyse systematically the forces that determine change in macroeconomic performance and living standards in Australia
  2. understand the relationship between the domestic economy and the international economic environment as reflected in the behaviour of the balance of payments and exchange rates
  3. evaluate critically the issues underlying important contemporary policy debates in Australia and elsewhere
  4. understand the nature and relevance of some significant recent developments in macroeconomics
  5. practice rigorous economic analysis and put that to constructive use in decision-making.


Within semester assessment: 40%
Examination: 60%

Chief examiner(s)

Dr Siew Ling Yew (First semester)
Dr Michael White (Second semester)

Workload requirements

Minimum total expected workload equals 144 hours per semester


ECC2010, ETC2010, ECC9010, ECX9010