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Monash College Unit Guide

INTRODUCTORY MACROECONOMICS (MCD1130)

Purpose

The purpose of this unit is to examine and explain the total economy - the national, regional and world economy.

  • At the national level, macroeconomics is concerned with the growth and fluctuations in the economy as a whole, dealing with employment, consumption, saving, investment, interest rates, the role of government and what causes economic growth and fluctuations (i.e. business cycles).
  • At the international level, the world economy has become characterised by freer trade among countries which necessitates the study of why trade takes place and how international trade is conducted.

Prerequisites

Nil

Learning outcomes

On completion of this unit, students should be able to:

  1. Define Economics and understand how people benefit from economic interdependence.
  2. Understand the major differences between the Keynesian and classical economics.
  3. Be critical thinkers and independent learners.
  4. Be able to undertake an independent research.
  5. Identify and analyse economic theory to understand the current issues.
  6. Calculate and understand the following concepts:
    • the components of GDP,
    • the inflation rate and the CPI,
    • the unemployment rate.
  7. Explain the factors that determine a country's productivity and unemployment.
  8. Understand the relationship between national saving, government deficit and investment.
  9. Define money and explain the role of the Reserve bank of Australia and be able to demonstrate the link between money, prices and interest rates.
  10. Define and show the relationship between NX and foreign investment and in this context the significance of a country's trade balance and exchange rate.

Assessment

Tutorial participation, assignments and tests: 40%

Final examination: 60%

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