UWA Business SchoolUnit OutlineMacroeconomics: Policy and ApplicationsECON2234SEM-2, 2015Campus: CrawleyUnit Coordinator: Dr Sam Tang All material reproduced herein has been copied in accordance with and pursuant to a statutory licence administered byCopyright Agency Limited (CAL), granted to the University of Western Australia pursuant to Part VB of the Copyright Act 1968(Cth).Copying of this material by students, except for fair dealing purposes under the Copyright Act, is prohibited. For the purposesof this fair dealing exception, students should be aware that the rule allowing copying, for fair dealing purposes, of 10% of thework, or one chapter/article, applies to the original work from which the excerpt in this course material was taken, and not tothe course material itself The University of Western Australia 2001Page 1Unit detailsUnit title Macroeconomics: Policy and ApplicationsUnit code ECON2234 Credit points 6Availability SEM-2, 2015 (27/07/2015 - 21/11/2015)Location Crawley Mode Face to faceContact detailsFaculty Business SchoolSchool UWA Business SchoolSchool website www.business.uwa.edu.auUnit coordinator Dr Sam TangEmail sam.tang@uwa.edu.auTelephone 6488 2931Consultation hours Wednesdays, 2:00pm 4:00pm or by appointmentLecturersName Position Email Telephone NumberSam Tang Unit Co-ordinator sam.tang@uwa.edu.au 6488 2931TutorsSimon Lang simon.lang@uwa.edu.auAmanda Meloni amanda.meloni@uwa.edu.auSusan Pen susan.pen@uwa.edu.auXing Shi xing.shi@research.uwa.edu.auJill Trinh jill.trinh@uwa.edu.auUnit contact hoursLecture time: Wednesdays, 8:00am 9:00amThursdays, 11:00am 12:00pmLecture venue:Please refer to http://www.timetable.uwa.edu.au for the unit timetable.Lecture capture system LCS is implemented for this unit.Online handbook http://units.handbooks.uwa.edu.au/units/ECON/ECON2234Unit website https://www.lms.uwa.edu.au/loginUnit rulesPrerequisites ECON1102 Macroeconomics: Money and FinanceUnit descriptionThis is an intermediate unit in macroeconomic theory and policy applications. This Level 2 unit is fairly broad, covering topics fromshort-run economic fluctuations to long-run economic growth. Unlike the Level 1 macroeconomics, the Level 2 unit uses formalmacroeconomic models for analysing issues such as unemployment, inflation, growth and open economy.IntroductionI welcome you to the second-year macroeconomics. This unit is of interest to anyone who likes to learn more about macroeconomicissuessuchaseconomicgrowth,incomeinequality,productivitygrowth,unemployment,inflation,monetaryandfiscalpolicies,business-cycle fluctuations, and the exchange rate. In this unit, you will acquire the skill of using macroeconomic models as tools foranalysing current macroeconomic issues. The unit will prove to be interesting as well as intellectually stimulating.Unit contentMacroeconomicsisthestudyoftheperformanceofthenationaleconomyandthepoliciesusedtoimprovethatperformance.Thestudy of macroeconomic issues is usually divided into short, medium and long run. The IS-LM model is widely used to study short-runmovements in the goods and financial markets. The aggregate supply and aggregate demand (AS-AD) model allows us to understandthe relationship between output and inflation, and the role of monetary and fiscal policy both in the short and medium run. In the longrun, macroeconomists are primarily interested in the question of how sustainable output growth can be achieved. We will cover the IS-LM model, AS-AD model and neoclassical model of growth in this unit. In addition, we will introduce open economy in the models if timepermits at the end.Unit goalsThe aim of Macroeconomics: Policy and Applications (ECON2234) is to develop your knowledge of macroeconomics so that you canuse that knowledge to analyse important macroeconomic issues affecting you.Educational principles and graduate attributesPage 2Learning outcomesStudents are able to (1) understand how equilibrium is determined in the goods and financial markets in a closed economy; (2) use theIS-LM model to analyse the effects of fiscal and monetary policy on output and unemployment in the short run; (3) use the AS-ADmodel to analyse the effects of government policy on the movements of goods, financial and labour markets; (4) use the Solows modelto understand the major forces of economic growth; and (5) analyse the effects of openness on goods and financial markets.Unit scheduleWeek WeekcommencingLecture topic TextreadingTutorial1 27 July IntroductionChapter 12 3 August National income accounting Chapter 23 10 August Growth and accumulation Chapter 6 Tutorial 14 17 August Growth and policy Chapter 7 Tutorial 25 24 August Income and spending Chapter 8 Tutorial 36 31 August Money, interest and income Chapter 9 Tutorial 47 7 September Monetary and fiscal policy in the closed economy Chapter 10 Tutorial 5(optional)8 14 September International linkages Chapter 11 Tutorial 69 21 September Aggregate supply and aggregate demand Chapter 3 Tutorial 7Mid-semester study break 28 September10 5 October Aggregate supply: wages, prices, output andunemploymentChapter 4 Tutorial 811 12 October Policy basics Chapter 5 Tutorial 912 19 October The anatomy of inflation Chapter 17 Tutorial 1013 26 October The anatomy of unemployment Chapter 18 Tutorial 11Pre-examination studybreak2 NovemberSemester 2 examinationperiod7 - 21 NovemberTeaching and learning responsibilitiesTeaching and learning strategiesTeaching and learning evaluationYou may be asked to complete two evaluations during this unit.TheStudentPerception ofTeaching (SPOT) and theStudentsUnitReflective Feedback (SURF). The SPOT is optional and is an evaluation of the lecturer and the unit. The SURF is completed online andisauniversitywidesurveyanddealsonlywiththeunit.YouwillreceiveanemailfromtheSURFofficeinvitingyoutocompletetheSURFwhenitisactivated.Weencourageyoutocompletetheformsasyourfeedbackisextremelyimportantandcanbeusedtomake changes to the unit or lecturing style when appropriate.AttendanceParticipationinclass,whetheritbelisteningtoalectureorgettinginvolvedinotheractivities,isanimportantpartofthelearningprocess. It is therefore important that you attend classes. More formally, the University regulations state that to complete a course orunit students shall attend prescribed classes, lectures, seminars and tutorials.Where a student, due to exceptional circumstances, isunable to attend a scheduled class, they are required to obtain prior approval from the unit coordinator to be absent from that class. Anystudent absent from class without having had such absence approved by the unit coordinator may be referred to the faculty for adviceand may be required to withdraw from the unit. Charter of student rights and responsibilitiesTheCharterofStudentRightsandResponsibilitiesupholdsthefundamentalrightsofstudentswhoundertaketheireducationattheUniversityofWesternAustralia.TheUniversity'scharterofStudentRightsandResponsibilitiesisavailableathttp://www.secretariat.uwa.edu.au/home/policies/charterStudent Guild contact detailsContact details for the University Student Guild can be found at http://www.guild.uwa.edu.au/. The Guild Education Officer is available toprovide assistance and advice on a range of issues.ACE/AISE/CARSYour academic orientation includes three online units which you must complete within the first 10 weeks of your enrolment:AACE1000 Academic Conduct Essentials (ACE) INDG1000 Indigenous Study Essentials CARS1000 Communication and Research SkillsPage 3Information for students with disabilitiesThe University has a range of support services, equipment and facilities for students with a disability. If you would like to receive adviceontheseservicespleaseemail uniline@uwa.edu.auorvisithttp://www.studentservices.uwa.edu.au/information_about/disability_programmeAssessmentAssessment overviewAssessment information is provided in the unit outline.Assessment mechanism# Component Weight % Due date Relates To outcomes1 Tutorial quiz 1 2% Week 3 1 - 52 Tutorial quiz 2 2% Week 4 1 - 53 Tutorial quiz 3 2% Week 5 1 - 54 Tutorial quiz 4 2% Week 6 1 - 55 Tutorial quiz 5 2% Week 8 1 - 56 Tutorial quiz 6 2% Week 9 1 - 57 Tutorial quiz 7 2% Week 10 1 - 58 Tutorial quiz 8 2% Week 11 1 - 59 Tutorial quiz 9 2% Week 12 1 - 510 Tutorial quiz 10 2% Week 13 1 - 511 Mid-semester examination 20% 11 September, 2:00pm 1 - 512 Final examination 60% Semester 2 examination period: 7 - 21 November 1 - 5Assessment itemsItem Description SubmissionProcedure#1-Tutorial quizzes Tutorials will start from Monday, 10 August 2015 (Week 3). Tutorial attendance andclass participation are required for Week 3-6 and Week 8-13. Tutorial classes forWeek 7 are optional due to the mid-semester test. Students will sit for a short quizfor each required tutorial. Each quiz is worth 2% of the total assessment. Studentswho fail to attend his/her own enrolled tutorial class will receive a mark of zero forthat class. Tutorial allocations can be made on-line at http://olcr.uwa.edu.au/.in class#2-Mid-semesterexaminationThe mid-semester examination will be held on Friday, 11 September at 2pm. Thetest will be 45 minutes and comprised of multiple choice and short answerquestions. The examination venues will be announced later in class and on LMS.Students should note this date and be available for the test. Since most studentsare doing four subjects, it is more than likely that other tests/assignments will beplaced around about the same time. Students should take care and organise theirstudy schedule. A deferred mid-semester test will not be available in this Unit.Instead, students who are given permission by the Sub-Dean to sit for the deferredmid-semester test will have their mid-semester test mark reassigned to the finalexam.#3-Final examination A two hour examination held in the normal examination period. Material covered inthe mid-semester test may be re-examined. More information will be provided inWeek 12 and 13.Academic literacy and academic misconductThe University of Western Australia takes very seriously the matter of academic misconduct by students and has policies in place thatdefinemisconduct(includingplagiarism)andthepenaltiesthatapply.Theconsequencesformisconductcanbesevere,includingexclusion from the University.All students are expected to make themselves aware of the definitions and the policies relating to academic misconduct, found at thewebsites below, and with any additional requirements or stipulations that may be provided by individual coordinators.http://www.teachingandlearning.uwa.edu.au/tl4/for_uwa_staff/policies/student_related_policies/academic_conductAppeals against academic assessmentThefullregulationsgoverningappealsproceduresareavailableintheUniversityHandbookavailableonlineathttp://rules.handbooks.uwa.edu.au/rules/student_rules/Textbooks and resourcesPage 4Recommended textsDornbusch, R, Bodman, P., Fischer, S & Startz, R 2013, Macroeconomics, 3rd edn. McGraw Hill, NSW. Other important informationStandard of assessmentThe Business School must ensure that the processes of assessment are fair and are designed to maintain the standards of the Schooland its students. The School follows the UWA marks and grades distribution:Higher distinction (HD) 80-100%Distinction (D) 70-79%Credit pass (CR) 60-69%Pass (P) 50-59%Fail (N+) 45-49%Fail (N) 0-44%Failed component (FC) Thescalingofmarkstoensurecomparabilitybetweenclassesisanacceptableacademicpractice.TheSchoolandBoardofExaminers have the right to scale marks where it is considered necessary to maintain consistency and fairness.Quality assuranceYourassessedworkmayalsobeusedforqualityassurancepurposes,suchastoassessthelevelofachievementoflearningoutcomes as required for accreditation and audit purposes. The findings may be used to inform changes aimed at improving the qualityof Business School programs. All material used for such processes will be treated as confidential, and the outcome will not affect yourgrade for the unit.Approved calculators for examinationsTheUniversitypermitsonlytheuseofcalculatorsinexaminationswhenthecalculatorhasanapprovedstickerandtheexaminerpermits their use.If the student does not have an approved sticker on their calculator, they will not be permitted to use the calculator. CalculatorscanbeapprovedattheUndergraduateStudentCentre,thePostgraduateStudentCentreoratStudent Administration. Further information is available on the Business School website at http://www.business.uwa.edu.au/students/assessmentsSpecial consideration/alternative arrangementsIf you are unable to attend a class, tutorial or examination due to circumstances beyond your control and are seeking an extension forsubmissionofanassignmentoradeferredexam,pleasereadvalidreasonsforspecialconsiderationa t http://www.student.uwa.edu.au/life/health/uniaccess/special-consideration,completetheapplicationformandsubmitattheUndergraduate Student Centre or Postgraduate Student Centre.PLEASE NOTE that deferred exams are not available in Summer School units.Acknowledging Sources of Information and the Business School Policy on PlagiarismStudent Services provides an online plagiarism portal that includes a definition of plagiarism and a link to FAQhttp://www.studentservices.uwa.edu.au/ss/learning/online_services/plagiarism_portalTurnitin' Originality Checking & Plagiarism Prevention is used in the Faculty to allow both educators and their students check writtenworkforimpropercitationormisappropriatedcontent.Moreinformationabout'Turnitin'canbefoundathttp://turnitin.com/static/index.htmleBooks and open book examseBooks cannot be taken into an examination. Please check your exam details and purchase a printed version of any book you wouldselect to take into an open book exam.ReferencingIt is important that the referencing of any sources used in your written work is done properly, if only to substantiate the points you aremakinginyourassignmentorproject.TheHarvardstyleisthepreferredandtherearesomenotesforguidancewhichhavebeenprepared by the library staff:Citing your Sources Harvard Style http://libguides.library.uwa.edu.au/harvardThe EndNote software package is a really good system for building up a database of references.Not everyone will want to invest thetime in using this system but you should consider it if you intend to build up resource materials or plan to undertake extensive researchinaparticulararea.Thelibrarystaffhavealsodevelopedatutoringpackage:AQuickGuidetoUsingEndNotewhichprovidesthebasics for using EndNote with an essay http://libguides.library.uwa.edu.au/endnoteLast day to add a unit offered in a semesterFrom 2014, the final date to add a unit has been changed to the end of week 2 of the semester.For further information on importantdates for 2015, refer to http://www.student.uwa.edu.au/course/dates/importantPage 5