ECON1002 Outline Sem 2 2011(1)

SCHOOL OF ECONOMICS

FACULTY OF ARTS AND SOCIAL SCIENCES

ECON1002 Introductory Macroeconomics Semester 2, 2011 Coordinator: Dr Mark Melatos Phone: 9036 9257, Email: [email protected] Office: Room 335, Merewether Building Consultation Time: Monday 2-4pm Lecturer: Dr Debajyoti Chakrabarty Phone: 9351 3670, Email: [email protected] Office: Room 360, Merewether Building Consultation Times: tba

Tutorial and Course Administrator: Bonnie Nguyen Phone: 9351 2840, Email: [email protected] Office: Room 345, Merewether Building Consultation Times: tba Lecture Times and Venues:

Stream 1: Monday 10am-12pm (Merewether Lecture Theatre 1) Stream 4: Wednesday 11am-1pm (Merewether Lecture Theatre 1) Stream 5: Thursday 11am-1pm (Merewether Lecture Theatre 1) Stream 6: Friday 11am-1pm (Merewether Lecture Theatre 1)

(NB: Streams 2 and 3 have been discontinued.)

1. Unit of study information 1.1. School handbook description

Introductory Macroeconomics addresses the analysis of the level of employment and economic activity in the economy as a whole. It is a compulsory core unit for the Bachelor of Economics and an alternative core unit for the Bachelor of Economic and Social Sciences. 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.

1.2. Pre-requisite units There are no pre-requisite units of study for this unit. 1.3. Assumed knowledge or skills Prior knowledge of macroeconomics is not required for this unit of study. However, students are expected to be familiar with basic algebra, graphical analysis and very simple economic concepts such as ‘opportunity costs’. Reading chapters 1 (and chapter 1 appendix) & 2 of the main text is strongly encouraged to refresh your memory or to provide you with the basic tools you will need for this unit.

ECON1002 Introductory Macroeconomics

1.4 Learning situation and assessment overview There will be one 2 hour lecture and a 1 hour tutorial per week. Students must attend their designated tutorial class. The assessment comprises online quizzes (10%), an essay (15%), a mid semester exam (25%) and a final exam (50%). See section 5 for details. 2. Learning objectives and outcomes For graduate attributes, visit the website http://sydney.edu.au/arts/teaching_learning/academic_support/graduate_attributes.shtml#artsggas 2.1. Aims of the unit

This Unit of Study introduces students to fundamental macroeconomic concepts and models. In this way, it provides a basic framework with which to analyse the aggregate behaviour of the economy as well as government policies affecting national income, consumption, investment, inflation, unemployment, external balances and exchange rates.

2.2. Learning outcomes On successful completion of this subject students should be able to:

• Interpret the meaning and measurement of macroeconomic aggregates such as Gross Domestic Product and Inflation;

• Explain and use the Keynesian model of national income determination;

• Describe the roles of money and the financial system in the macroeconomy;

• Critically analyse macroeconomic policies appropriate to the achievement of the macroeconomic objectives;

• Explain and apply the aggregate demand/aggregate supply model;

• Explain what determines unemployment and inflation;

• Explain analytically the long run determinants of a nation’s standards of living and use the analytical tools to discuss government policies

• Analyse the factors influencing the balance of payments and the exchange rate.

• Understand a day-by-day macroeconomic issue and critically evaluate current macroeconomic policies.

2.3. Learning and teaching activities

Lectures: Regular attendance at lectures is a first step toward a successful learning outcome. Students are strongly encouraged to attend all lectures and are expected to spend at least an hour to read through the lecture notes/related textbook chapters before they come to lectures. Important announcements may often be made in lectures. You should not expect to instantaneously "understand" all the material in each lecture; that will almost certainly require you to go away from the lecture and think carefully about what you have heard and been shown, assimilate further material from the textbook, actively participate in the tutorial program and work diligently through quizzes. Lecture overheads will be posted onto the course website in advance of each lecture. Note that lecture overheads will not be thorough or complete unless you take notes and work through diagrams etc during the lecture.

Tutorials are essential for helping you clarify any misunderstandings and apply concepts to more difficult problems. During the tutorials you will be asked to participate in discussions and solving problems and may also be asked to give a short presentation on an assigned problem. Note that tutorials will begin in Week 2.

Blackboard: Lecture outlines for each week along with all handouts and announcements about classes or assessment will be available on the University's Blackboard site. How to log into ECON1002 Blackboard website: See the link: http://sydney.edu.au/elearning/student/getstart/webct_login.shtml


or http://elearning.sydney.edu.au

Netiquettes and classroom courtesy

E-mail policy: E-mails to teaching staff should be sparingly used, typically to make an appointment, or to let the staff know any urgent issues. Questions concerning the course material should be asked in person during the staff consultation hours (available on the course website). When sending an e-mail, students should always use the university e-mail address and identify their names and student ID. Otherwise, no reply may be given.

Classroom courtesy: To avoid distracting the lecturer and other students in the classroom, please make every effort to arrive on time. If you happen to arrive late or should leave early, you should use the rear entry/exit, without any noise. Students who chat repeatedly during lecture may be asked to leave. No prior warning may be given. Mobile phones must be switched off before each class begins.

3. Topic Schedule

Week/Date

Reading Lecture content Tutorial* content

Assessment Due

1/ July 25

BOF Ch 1

1.1 Introduction to Macroeconomics

1.2: Measuring Macroeconomic Performance: Output

No tutorial in Week 1

2/ Aug 1

BOF Ch 1, 2

2.1: Measuring Macroeconomic Performance: The Price Level

2.2: Measuring Macroeconomic Performance:

Savings and Wealth

Lecture topic

1

3/ Aug 8

BOF Ch 3 BOF Ch 4

3.1: Measuring Macroeconomic Performance: Unemployment and the Labour Market

3.2: An Introduction to Short-term Economic

Fluctuations

Lecture

topics 1& 2

4/ Aug 15

BOF Ch 5

4: Macroeconomics in the Short-Run: The Basic Keynesian Model

Lecture topic

3

Online Quiz 1

5/ Aug 22

BOF Ch 6 BOF Ch 7

5.1: Fiscal Policy

5.2: Money, Prices and the Reserve Bank

Lecture topic

4

6/ Aug 29

BOF Ch 8

6: The Reserve Bank, monetary policy and the Economy

Lecture topic

5

7/ Sept 5

Mid-semester Examination

There will be no lectures scheduled this week. However, tutorials will run normally.

Lecture topic

6

8 Sept 12

BOF Ch 9 7: Aggregate Demand and Aggregate Supply

Go over

Midsemester exam


9/ Sept 19 2

BOF Ch 10 BOF Ch 11

8.1. An Introduction to Economic Growth 8.2. The Production function approach to

growth

Lecture topic

7

AVCC non-teaching week (26-30 September 2011) 10/ Oct 3

BOF Ch 12

9.1. Savings, capital formation and growth

9.2. The convergence hypothesis and empirical evidence

Lecture topic 8

Structured

Essay

11/ Oct 10

BOF Ch 14

10: Exchange Rates and the Open Economy

Lecture topic

9

12/ Oct 17

BOF Ch 14

11.1: Exchange rates and Equilibrium 11.1: Fixed Exchange rates and the balance

of payments

Lecture topic

10

13/ Oct 24

BOF Ch 15 BOF Ch 16

12.1: The Balance of Payments Crises 12.2: Some global macroeconomic issues:

What have we learnt? 12.2: Overview, future study and career

options, and evaluation

Lecture topic 11

Online Quiz 2

14 StuVac

*Tutorial content

The detailed tutorial content will be separately available on a week by week basis for downloads on Blackboard.

4. Texts and Other Resources

Bernanke, Ben; Olekalns, Nilss; Frank, Robert, Principles of Macroeconomics, 2010, 3RD Edition (hereafter BOF).

The textbook is available for purchase from the Co-op bookshop in the campus. Fisher library should also have a number of copies for borrowing.

It is strongly recommended that students have their own copy of the prescribed textbook.

Supplementary Material The publisher provides a range of support material for the textbook – details available in the textbook. While the support material may provide useful additional assistance to your study of the subject matter, the support material is not required reading. Students must make their own judgement as to whether accessing and using the support material is worthwhile. The examinable content of the textbook is defined by the Lecture Outline and the Tutorial Program. Additional Readings


In a subject like this, it is important that you keep up to date with current macroeconomic affairs, as they related to the Australian economy and the rest of the world. This subject will be taught on the basis that you are reasonably well informed about current macroeconomic events, such as a recent change in the official interest rate announced by the Reserve Bank of Australia. For this, students are strongly encouraged to refer to newspapers (the Sydney Morning Herald, the Australian Financial Review, etc.), periodicals (The Economist), and the broadcasting media (e.g. Lateline program). There are also many useful internet sources from which you can download useful readings and macroeconomic data: the Reserve Bank of Australia (http://www.rba.gov.au) for both policy statements and Australian macroeconomic data etc. There is a list of carefully selected essential readings that will help you deepen your understanding. These readings will be electronically available from either the course website or the library course readings website.

5. Assessment 5.1 Assessment Schedule

Assessment items Weight Due Date 1). Two Online Quizzes

2*5%=10% Throughout semester See 5.2 below for further details

2). Mid-semester test 25% Week beginning 5th September See 5.2 below for further details

3). Structured research essay

15% Week beginning 3rd October See 5.2 below for further details

4). Final examination 50% November exam period

Total 100% 5.2 Detailed Assessment Information 1) Online Quizzes The aim of the online quizzes is to help students develop good study habits and understand key concepts and theories by practicing multiple choice questions on a regular basis.

You will have to do 20 multiple-choice questions on the lecture topics covered previously. Make sure that you allocate sufficient time to do them. Do not expect to complete them at the last minute—computers are not always available. No excuses will be accepted unless there was a significant incident or illness which can be documented. Unacceptable excuses include computer or internet unavailability, employment, holiday, sports etc. Note that you are given 72 hours to do the quiz.

The quizzes will be available on Blackboard under “Online Quiz” on particular Mondays at 5pm. They will have to be completed online by Thursday at 5pm. The timetable for online quizzes is:

QUIZ STARTS ONLINE MONDAYS AT 5PM

ENDS ONLINE THURSDAYS AT 5PM

TOPIC COVERAGE

1 15 AUGUST 18 AUGUST LECTURE TOPICS COVERED IN WEEKS 1 TO 3.

2 24 OCTOBER 27 OCTOBER LECTURE TOPICS COVERED IN WEEKS 8 TO 12.

NOTE: Provided a quiz is still available and not yet SUBMITTED, you can correct any previously saved answer before the deadline.

On the assignment page, you will find two buttons in the bottom right hand corner -"Save", "Submit". You may save your work by clicking on the "Save" button and continue the assignment at a later time.


DO NOT CLICK on the "SUBMIT" button unless you have completed the assignment and want to get it graded.

You can submit the assignment only "ONCE".

The quizzes will be computer-marked. You will be able to see your score and correct answers once all students have submitted their answers. Note that the GRADE is FINAL. Students are strongly advised to keep a copy of the receipt of this electronic submission.

Warning!: It cannot be helped if you mistakenly submit your answer too early OR if you fail to submit your answer before it is closed. If you do not submit answers by the deadline for a quiz, you will not get marks. The quiz will disappear immediately at the deadline. Students are strongly advised to have a soft or hard copy of the questions and answers they attempted and submitted.

2) One mid-semester exam (one hour) during the week of September 5 (time and venue to be advised). If you have a clash with another unit at this time, contact your lecturer immediately. The mid-semester exam will be a closed-book exam. It will involve 10 multiple choice questions, and analytical problems based on topics studied for the first half of the semester.

3) Structured research essay (1.5 hours) during the week of October 3 (time and venue to be advised). Students will be required to write a short essay under exam conditions on a topic to be provided.

4) One end-of-semester exam (two hours) (time and place to be announced centrally by the University Examinations Office). The end-of-semester exam will be closed-book. It will involve multiple choice questions, essay questions or analytical problems based on ALL topics studied in the course. Questions will primarily come from the second-half of the course, but not exclusively. Note that no past exam papers will be available.

Students may refer to the ‘Information for Students on Assessment of Coursework’ available on http://sydney.edu.au/ab/policies/Assess_Exam_Coursework.pdf ]

5.3 Feedback Feedback on assessments should be taken seriously to help you achieve your learning goals. In this unit you will receive the following types of feedback:

• Marks will be posted into the Blackboard Grade Centre when all results for an assessment have been compiled. Marks will not be given by email or over the phone. Final marks will not be posted in Grade Centre. Marks for online quizzes are available immediately upon completion and marks for mid-semester exams will be available as soon as all exams have been marked.

• Errors made in exams are typically identified on the paper. A summary of class-wide errors and appropriate improvement action for each criterion is provided in class.

• If you would like further feedback on an assessment task, you are encouraged to ask your lecturer after class or during consultation hours.

6. Student feedback and evaluation Student feedback plays a very important part in helping develop this unit and degree program in general. Students are encouraged to approach the lecturer with feedback about the unit during the semester. Students will also have the opportunity to fill-out a confidential unit of study evaluation for each unit of study in the program at the end of the semester.

7. University and Faculty Policies and Support

7.1 Attendance requirements and penalties for non-attendance


http://sydney.edu.au/arts/downloads/documents/policy/2009_Arts_Attendance_policy.pdf

7.2 Submission of work and academic honesty http://sydney.edu.au/ab/policies/Academic_Honesty_Cwk.pdf Academic honesty is important to protect students' right to receive due credit for work submitted for assessment. It is clearly unfair for students to submit work for assessment that dishonestly represents the work of others as their own and gain marks and degrees, which are not based on their own efforts and abilities. Deliberate breaches of academic honesty constitute academic misconduct. These breaches include: plagiarism, fabrication of data, recycling previously submitted material, engaging someone else to complete an assessment on one’s behalf and misconduct during supervised assessments.

The penalties for academic misconduct may include: a mark of zero on the assessment; a fail grade in the unit of study, additional assessment (including an unseen exam), and reference of the matter to the University Registrar. Academic dishonesty involves more than just copying material. Cooperation and helping other students may at times trigger academic dishonesty proceedings if it appears you have worked too closely with another student. Individual assignments must be written and prepared alone. You may consult with other students about ideas and possible research sources but the analysis and writing of the assignment must be done alone. Group assignments should be prepared within the group. Students should contribute fully to the group and take part in all group activities, contributing ideas, analysis and writing to the final product. While students within the group should assist each other freely, students should not carry this level of cooperation outside the group. One group may cooperate and help another group about ideas and possible research sources but the analysis and writing of the assignment must be done by the group alone.

7.3 Late work policy Students must respect deadlines for assignments and should familiarise themselves with the Faculty policy on late work, available at: http://sydney.edu.au/arts/downloads/documents/policy/2011_Policy%20on%20Late%20Work.pdf

7.4 Special Consideration All applications for Special Consideration together with supporting documentation must be submitted online at: http://sydney.edu.au/arts/current_students/online_application.shtml

Faculty policy The Faculty of Arts and Social Sciences assesses student requests for assistance relating to completion of assessment in accordance with the regulations set out in Part 5 of the University of Sydney Academic Board’s policy on Assessment and Examination of Coursework. Students are expected to become familiar with the University’s policies and Faculty procedures relating to Special Consideration and Special Arrangements. A summary of the Faculty of Arts and Social Sciences regulations is available at: http://sydney.edu.au/arts/current_students/special_consideration.shtml.

School of Economics policy If an application for Special Consideration is approved, the following form of consideration will be granted:

Assessment Action taken by student Consideration that will be granted

Final exam Did not attend exam Further test (after end of semester exam period) Class test / mid-semester test Did not attend the test Further test (after end of semester exam period)


Further test Did not attend further test Second further test (start of following semester)

Second further test Did not attend second further test

EITHER Grade of Absent Fail ( for repeated short-term illness) OR grade of Discontinue (Not to count as Fail) for ongoing serious illness or misadventure

Assignment Late submission Grant extension or reweight other assignments Optional assignment or test Did not attend the test None Tutorial Did not attend Reweight other tutorials Tutorial written work Not submitted Reweight other tutorials All other assessment not listed Not submitted Reweight or alternative assessment offered

7.5 Appeals against academic decisions University policy http://sydney.edu.au/senate/policies/Ac_Appeals_Rule.pdf

Faculty Policy http://sydney.edu.au/arts/current_students/undergraduate_forms.shtml#appeals

7.6 Student Support Faculty Policy http://sydney.edu.au/arts/current_students/student_support.shtml

7.7 Students with a disability Students with a disability who wish to obtain reasonable adjustments for their disability must register with and seek the support of the Disability Services Office. A student who is registered with the Disability Services Office, and has in place reasonable adjustments for a disability, may also make a separate claim for special consideration due to illness or misadventure (see 7.4 above).


PASS information for the Unit of Study Outline: S2, 2011

PASS Program: Peer Assisted Study Sessions The Faculty of Arts and Social Sciences funds an additional program for economic students called PASS. PASS stands for Peer Assisted Study Sessions. Research from the UK, USA and Australia has consistently demonstrated that students who regularly attend PASS are likely to improve their academic performance and are less likely to fail or drop out. In 2010, 99% of respondents to end of semester, anonymous surveys reported they learnt during PASS and 97% reported that they enjoyed the program. One student commented “I loved everything about PASS – it was GREAT for clarifying ideas from class [and] helped my studies. I also had the opportunity to make many friends through PASS”. What’s in it for you? Weekly, hour-long sessions lead by senior, high achieving students. A focus on mastery of course content through discussion and peer learning. Extra learning opportunities, including problem solving practice where relevant, in areas directly related to understanding the concepts more thoroughly. Great opportunities to meet other students and study effectively together in relaxed, interactive, small groups. Registering for the PASS program Attendance in PASS is voluntary but highly recommended. Registrations open the first week of semester. PASS starts in week 2 of semester. Spaces in the PASS program are limited. Students register for PASS online at: http://sydney.edu.au/business/learning/students/pass Email all enquiries about the PASS program to: [email protected] PASS Blackboard Students will be able to access PASS materials via the ECON1002 Blackboard site. You will find the PASS agendas for each week, under the PASS tab, plus a range of useful links that may assist you to learn and study more effectively.

ECON1002 Outline Sem 2 2011(1)

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