COURSE GUIDE SEMESTER 1 - 2013
COURSE NAME Macroeconomics 2
CREDIT POINTS12 points
WEEKLY CONTACT HOURS3 hours per week for 12 weeks
WEEKLY NON-CONTACT HOURS9 hours
PREREQUISITES ECON-1010/EF110 /MEF110 Macroeconomics 1, or equivalent
ASSESSMENTTwo tests worth 20% each
One two-hour final examination worth 60%
GRADINGSHD, D, C, P, N
Telephone: 9925 5875
Fax: 9925 5986
1.AIMS AND OBJECTIVES
The aim of this subject is to extend students understanding of the workings of the Australian economy and its effect on the business environment. The analytical tools necessary for such understanding will be developed throughout the semester.
Specific objectives include:
(i)Developing a framework in which the simultaneous determination of economic aggregates such as output, prices, employment and interest rates can be explained, building upon the various economic models introduced in Macroeconomics 1, or the equivalent introductory macroeconomics course;
(ii) Providing students with the ability to identify and discuss major schools of economic thought within this framework, and link them to particular time periods;
(iii) Enabling students to develop the necessary tools to analyse current economic problems and policy positions;
(iv)Extending the understanding students have of the interrelationships between Australia, and other sovereign economies, including those in the Asia-Pacific region, and the world economy.
2.TEXTBOOKS AND READING
The prescribed textbook that students are expected to purchase is:
* MACROECONOMICS – ECON-1042 MACROECONOMICS 2 – A PEARSON AUSTRALIA CUSTOM BOOK; Pearson Australia, 2013
In addition to the prescribed textbook, there is also a PRESCRIBED MANUSCRIPT which is provided free of charge. This is:
* Brooks, R, Fausten, D, and Carter, S, “Macroeconomics In The Open Economy – Macroeconomics 2”, February 1996 Edition
(Original Manuscript, 1995)
Note: The above text will be available in PDF format in the documents section of the RMIT Learning Hub site for Macroeconomics 2.
Other books that will be used extensively in this course are:
Diulio, E.A., “Macroeconomic Theory” (Third Edition, McGraw Hill, 1998)
Gordon, R.J., "Macroeconomics" (Twelfth Edition, Pearson, 2011)
Stegman, T, and Junor, B., "Introductory Macroeconomics", (Harcourt, Brace, Jovanovich, 1993).
Jackson, J, McIvor, R, and McConnell, C, "Economics" (Fifth Australian Edition, McGraw-Hill, 1998)
Many other books on macroeconomics are available in the Business Information Centre on Level 5 of Building 108. Students should make a point of consulting any or all of the following from time to time. I shall provide more detailed information about these and their respective numbers in the first lecture.
0 Abel, A.B., and Bernanke, B.S., "Macroeconomics", (Fifth Edition, Addison-Wesley, 2005). *
1 Baily, M.N., and Friedman, P., “Macroeconomics, Financial Markets, and the International Sector” (Second Edition, Irwin, 1995) *
2 Baumol, W.J., Blinder, A.S., Gunther A.W. and Hicks, J.R.L., "Economics: Principles and Policy" (Second Australian Edition, H.B.J., 1992)
3 Blanchard, O., and Sheen, J., ”Macroeconomics; Third Australasian Edition” (Pearson Education, Australia, 2009) *
4 Dornbusch, R., Bodman, P., Fischer, Crosby, M., Fischer, S., and Startz, R., "Macroeconomics" SECOND AUSTRALIAN EDITION (McGraw-Hill, 2006) *