Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should be able to interpret recent movements in key economic indicators of the Australian economy, and appreciate some of the definitional and measurement problems associated with the available data; understand the importance of distinguishing between the short-run and long-run impact of macroeconomic policy; apply economic analysis appropriate to achieving an understanding of the working of the macroeconomy; appreciate the forces which determine the level of national output, employment, inflation and interest rates; recognise the significance of Australia's economy in relation to the rest of the world and the implications of this interdependence for the balance of payments and exchange rate; acquire the knowledge necessary for informal and critical evaluation of current macroeconomic policy proposals.
Synopsis The subject aims to provide an understanding of the macroeconomic environment which impinges upon management decisions in the private and public sectors. It focuses, in particular, upon the domestic and international factors influencing the performance of the world and Australian economies with respect to economic growth, inflation and unemployment, and on the principles and problems of current macroeconomic policy.
Assessment Written (assignments) + Examination (2.5 hours)