Outline

Overview

Introductory Macroeconomics addresses the analysis of the level of employment and economic activity in the economy as a whole. Introductory Macroeconomics examines the main factors that determine the overall levels of production and employment in the economy, including the influence of government policy and international trade. This analysis enables an exploration of money, interest rates and financial markets, and a deeper examination of inflation, unemployment and economic policy. It is assumed that students undertaking this unit will have a prior knowledge of mathematics.

Unit details and rules

Unit code	ECON1002
Academic unit	Economics
Credit points	6
Prohibitions ?	None
Prerequisites ?	None
Corequisites ?	None
Assumed knowledge ?	Students enrolled in this unit have an assumed knowledge equal to or exceeding 70 or higher in HSC Mathematics (or equivalent), or 35 or higher in HSC Mathematics Extension 1 (or equivalent), or 35 or higher in HSC Mathematics Extension 2 (or equivalent).
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Graham White, g.white@sydney.edu.au

Type	Description	Weight	Due	Length
In-semester test (Record+)	Mid-Semester Exam # 1 Mid-Semester Exam	20%	Week 03 Due date: 04 Feb 2021 at 17:00	50 minutes
Outcomes assessed:
In-semester test (Record+)	Mid-Semester Exam # 2 Mid-Semester Exam	20%	Week 04 Due date: 11 Feb 2021 at 17:00	50 minutes
Outcomes assessed:
Final exam (Record+)	Final Exam Final Exam	60%	Week 06 Due date: 22 Feb 2021 at 14:00	2 hours
Outcomes assessed:
= Type B in-semester exam ? = Type B in-semester exam ? = Type B final exam ?

Assessment summary

Further details of both mid-semester exams and the final exam will be provided on Canvas

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a High distinction indicates work of an exceptional standard, a Distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name	Mark range	Description
High distinction	85 - 100
Distinction	75 - 84
Credit	65 - 74
Pass	50 - 64
Fail	0 - 49	When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see sydney.edu.au/students/guide-to-grades

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

Deduction of 5% of the maximum mark for each calendar day after the due date.
After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Learning support

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Weekly schedule

WK	Topic	Learning activity	Learning outcomes
Multiple weeks	Please see "Additional Information" for a list of lecture topics and required readings. Some lecture topics are more time-consuming than others; accordingly, to avoid confusion I have not allocated particular lecture topics to particular weeks. I simply note here that lectures and tutorials over the four-week intensive unit gradually progress through the list of topics in the order in which they are listed under "Additional Information"	Block teaching (36 hr)

Attendance and class requirements

Attendance: According to Faculty Board Resolutions, students in the Faculty of Arts and Social Sciences are expected to attend 90% of their classes. If you attend less than 50% of classes, regardless of the reasons, you may be referred to the Examiner’s Board. The Examiner’s Board will decide whether you should pass or fail the unit of study if your attendance falls below this threshold.
Lecture recording: Most lectures (in recording-equipped venues) will be recorded and may be made available to students on the LMS. However, you should not rely on lecture recording to substitute your classroom learning experience.
Preparation: Students should commit to spend approximately three hours’ preparation time (reading, studying, homework, essays, etc.) for every hour of scheduled instruction.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

LECTURE TOPICS AND READINGS

Required textbook: Bernanke, Ben; Olekalns, Nilss; Frank, Robert, Principles of Macroeconomics: McGraw-Hill.

There are two editions of this book which are suitable for this unit:

4th Edition 2014, (BOF4)

5th Edition 2019, (BOF5)

Both of these should be available as an e-version.

The readings from the text listed below for each of the lecture topics include the relevant parts for both editions.

Please note that you can still purchase the physical version of the textbook if you wish, though there may be a price differential with the e-version. Physical copies of the textbook will also be made available in 2hr reserve in Fisher library.

Additional Required Readings:

Below are additional readings that will help you deepen your understanding of the lecture material. These readings will be electronically available from the course website on the Fisher library catalogue: just search for “unit of study” and “ECON1002”.

Topic 2: Macroeconomic equilibrium: investment and saving

Stegman T. and Junor B. (1991), Introductory macroeconomics, Ch. 4, Sydney : Harcourt Brace.

Money, the banking system and monetary policy

Topic 6: Monetary policy and the economy

Reserve Bank of Australia (2015), “About Monetary Policy”, Reserve Bank of Australia Website

LECTURE TOPICS

1. Introduction to macroeconomics and national income accounting

Introduction to macroeconomics

National income accounting: measuring output

National income accounting: measuring the price level

Reading:

BOF4 Ch. 1 Sects 1.1 – 1.4.5 and Ch. 2 Sects 2.1 – 2.3

BOF5 Ch. 2 Sects 2.1 – 2.4; Ch. 3 Sects 3.1 – 3.3; Ch. 4 Sects 4.1 – 4.3

2. Macroeconomic equilibrium

Macroeconomic equilibrium: equilibrium in the level of output

Macroeconomic equilibrium: planned versus actual magnitudes

Macroeconomic equilibrium: investment and saving

Reading:

BOF4 Ch. 5 Sect 5.2.1

BOF5 Ch. 7 Sect 7.2.1

Stegman and Junor Ch. 4.

3. Introduction to the theory of output: the traditional (pre-Keynesian) model

Investment and the rate of interest

Saving and investment: equilibration via the rate of interest

The traditional view of the labour market

Output determined by the requirement of full-employment

Reading:

BOF4 Ch. 1 Sect 1.4.8; Ch. 2 Sects 2.4 – 2.6; Ch. 3 Sect 3.1; Ch. 12 Sects 12.2.1 – 12.2.2

BOF5 Ch. 3 Sect 3.5; Ch. 4 Sects 4.4 – 4.6; Ch. 5 Sect 5.1; Ch. 14 Sects 14.2.1 – 14.2.2

4. The Keynesian theory of output: a simple model

The consumption function

A simple two-sector income-expenditure model

Adjustment to disequilibrium

The multiplier, the “principle of effective demand” and the adjustment of saving to investment

The paradox of thrift

The four-sector income-expenditure model

Reading:

BOF4 Ch. 5

BOF5 Ch. 7

5. Fiscal policy: an introduction

Fiscal policy in the Keynesian income-expenditure model

The impact of changes in government expenditure, exogenous taxation and the tax rate

The balanced budget theorem

Fiscal policy from the perspective of the traditional (pre-Keynesian) approach

Reading:

BOF4 Ch. 6

BOF5 Ch. 8

6. Money and monetary policy

Money: its functions and measurement

The quantity of money and the banking system: deposit creation

Reserves, deposit creation and the role of the central bank

Monetary policy and the cash rate

Interest rates in general

Monetary policy and the economy

Reading:

BOF4 Ch. 7 Sects 7.1, 7.3 – 7.4, 7.6; Ch. 8.1, 8.3 and Appendix

BOF5 Ch. 9 Sects 9.1, 9.3 – 9.4, 9.6; Ch. 10 Sects 10.1, 10.3 and Appendix

Reserve Bank of Australia (2015), “About Monetary Policy”, Reserve Bank of Australia Website

7. The aggregate demand and aggregate supply model and macroeconomic policy

The aggregate demand and aggregate supply functions, prices and the inflation rate

Macroeconomic policy in the aggregate demand and supply model

Reading:

BOF4 Ch. 9 Sects 9.1 – 9.4

BOF5 Ch. 11 Sects 11.1 – 11.4

8. Open-economy macroeconomics: an introduction

The balance of payments

Exchange rates and the open economy

Exchange rates and equilibrium in the open-economy

Fixed versus flexible exchange rates

Reading:

BOF4 Ch. 15 Sects 15.1 – 15.6 and Ch. 16 Sects 16.1 – 16.3

BOF5 Ch. 17 Sects 17.1 – 17.6; Ch. 18 Sects 18.1 – 18.3

Learning outcomes

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

Outcomes
Graduate qualities

At the completion of this unit, you should be able to:

LO1. interpret the meaning and measurement of macroeconomic aggregates such as GDP, unemployment and inflation
LO2. understand how the economy behaves in the short-run using the Keynesian model
LO3. analyse critically short-run macroeconomic policies
LO4. describe the role of money and the financial system in the macroeconomy
LO5. explain what determines unemployment and inflation
LO6. understand and explain macroeconomic policies that improve standards of living
LO7. analyse the factors influencing the balance of payments and the exchange rate
LO8. understand a day-by-day macroeconomic issue and critically evaluate current macroeconomic policies.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1	Depth of disciplinary expertise Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.
GQ2	Critical thinking and problem solving Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.
GQ3	Oral and written communication Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.
GQ4	Information and digital literacy Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.
GQ5	Inventiveness Generating novel ideas and solutions.
GQ6	Cultural competence Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.
GQ7	Interdisciplinary effectiveness Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.
GQ8	Integrated professional, ethical, and personal identity An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.
GQ9	Influence Engaging others in a process, idea or vision.

Outcome map

Learning outcomes	Graduate qualities
Learning outcomes

Responding to student feedback

This section outlines changes made to this unit following staff and student reviews.

No substantive changes have been made since the last iteration (Jan-Feb, 2020)

Additional information

Site visit guidelines

There are no site visit guidelines for this unit.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Site visit guidelines

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

ECON1002: Introductory Macroeconomics

Intensive February, 2021 [Block mode] - Remote

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Attendance and class requirements

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Additional information

Additional information

Site visit guidelines

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect