ECO120 Macroeconomics Rod Duncan Lecture 1- Introduction to Macroeconomics

Overview Basic information about the subject Tutorial sign up sheets Lecturer: Roderick Duncan Phone: (02) Office: C2 – 232

Interact Webpage Announcements Resources

Lectures and tutorials Lecture –Slides from the lectures will be available on Interact Resources Tutorials –Start week 2 –Allocations available Friday 31 st on Rod’s door and on Interact –Must attend at least 10 tutorials to pass subject.

Tutorial sign-ups Tutorial sign-up: –Tutorial sign-up sheets will be handed out during the first class and also available outside C –Each tutorial is limited to 22 slots. Please fill out your 4 preferences (from most preferred to least).

Textbook –The recommended textbook McTaggart, D. Findlay, C. and Parkin, M.(2007) Macroeconomics, 5 th ed., Pearson Education Australia. –Earlier editions are OK but you need to vary the chapter numbers and topics and check the content. –MyEconLab is compulsory. Log in at: –First tutorial assignment (due in tutorials next week!) is to print out your registration in CourseCompass.

MyEconLab Go to Course ID “duncan87723”. Use the access code from your text book (or see Rod if you do not have a code). Follow the registration instructions. There is a video tutorial with instructions on the website.

Learning philosophy “I hear, I forget; I see, I understand; I do, I remember.” The only way to learn economics is to do economic problems. You have to be very good with solving the types of problems that are on the exam. You need to practice, practice, practice.

Assessment Four assessment items: 1.Tutorial papers-20% of final grade 2.Mid-term 1- in lecture on August 31 st - 15% of final grade 3.Mid-term 2- in lecture on November 2 nd - 15% of final grade 4.Final exam- during exam period- 50% of final grade and must pass to pass subject.

Let’s start at the end Often, when you plan things out, it’s best to start your planning by looking at what you need to achieve at the end. What skills and knowledge do you need to pass the final exam at the end of this class? Let’s look at some of the final exam questions.

Standard type of exam question in economics-concept/application QUESTION: B.1 (5 + 5 = 10 marks) The Federal government expands the visa program to allow the immigration to Australia of more skilled workers. (a) Show the impact of this expansion on the Australian labour market. Explain what is happening. (b) Show the impact of this expansion on the Australian economy using the AD-AS diagram. Explain what is happening.

Another type of exam question- application in a short report QUESTION: C.2 (20 marks) The collapse of several major investment banks in Australia causes a drop in investor confidence across all Australian industries. Investment demand in Australia falls as a result. Business economist, Gus Rottins, states that “Because of the investment collapse, it looks like the RBA won’t be raising interest rates again this year.” Assume that Gus is using an AD-AS model of the economy. Explain whether Gus is reasoning correctly with the AD-AS model. Show whether Gus could be correct in his statement. [Be sure to include a clear explanation of inflation targeting in your argument. It will be a necessary part of Gus’ reasoning.]

Help with economics HELP! If you find yourself lost and/or confused, what to do? –Read the Subject Outline. –Check the INTERact. –Ask your tutor – Rod at –Talk to Student Services at