ECON 2507 - Intermediate Macroeconomics II

North Terrace Campus - Semester 1 - 2022

The first year Principles of Economics course provided a broad overview of macroeconomics. In this course, the aim is to delve a little deeper into the subject. Macroeconomics is concerned with the behaviour of the economy as a whole. In particular it addresses the big issues which affect us on a day to day basis. As macroeconomists we want to know why some countries grow more quickly than others, why some experience high inflation while others have stable prices and why all countries experience recessions and booms. Furthermore, we want to know if government policy can have an impact on these factors. The aim of this course is to provide tools that allow for a deeper understanding of these issues. It is intended that this course leads on from the first year Principles of Economics course and provides a smooth transition for those intending to pursue macroeconomics in later years.

  • General Course Information
    Course Details
    Course Code ECON 2507
    Course Intermediate Macroeconomics II
    Coordinating Unit Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ECON 1005 or ECON 1010 or equivalent
    Assumed Knowledge ECON 1012 or ECON 1000
    Assessment Typically, mid-Semester test and final exam
    Course Staff

    Course Coordinator: Dr Raul Barreto

    Office hours: Wednesdays 11am - 12pm

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        or (Australia)
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    Preferred method of contact: E-mail.
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:
    1. Relate basic macroeconomic theory and principles to current macroeconomic issues.
    2. Apply basic macroeconomic theory to analyse macroeconomic policies.
    3. Present arguments while viewing the world through simple, internally consistent economic models
    4. Articulate the benefits and the caveats of an argument that is relies on a specific economic theory
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.


    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.


    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.


    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.

  • Learning Resources
    Required Resources
    Macroeconomics by N. Gregory Makiw (current ed. is 11 although ed. 10 is acceptable)
    Recommended Resources
    Blanchard & Sheen - Macroeconomics, Australasian Edition (Pearson). 4th edition
    Online Learning
    All additional material will be posted on the course MyUni website.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Reading Material:
    Required reading will be posted on MyUni to introduce the concepts that we will discuss during the lecture videos. You are expected to have read and understood the material BEFORE attending tutorials so that time can be allocated efficiently when exploring these concepts further.

    Lectures videos will complement class readings to provide you with the necessary understanding of the material needed to solve the exercises you will be given for assignments or exams. Examples will be used to illustrate the concepts presented in this course.

    Tutorials will cover additional exercises which address similar problems as discussed in lectures. It will clarify the expectations set for exams and assignments.

    These problem sets will reinforce key concepts covered in course lectures, and will give a good indication of how the mid-term and the final exam are constructed.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week. Students are also expected to commit approximately 8 to 10 hours to private study, that is, study outside of your regular classes.
    Learning Activities Summary
    Teaching & Learning Activities Related Learning Outcomes
    Lectures 1,2,3
    Tutorials 1,2,3

    Lecture Schedule:

    Part 1 — Introduction (week 1)

    1 The Science of Macroeconomics
    2 The Data of Macroeconomics

    Part 2 — Classical Theory: The Economy in the Long Run (weeks 2 - 6)

    3 National Income: Where it Comes From and Where It Goes
    4 The Monetary System: What it Is and How It Works
    5 Inflation: Its Causes, Effects, and Social Costs
    6 The Open Economy
    7 Unemployment and the Labor Market

    Part 3 — Growth Theory: The Economy in the Very Long Run (weeks 7 - 8)

    8 Economic Growth I: Capital Accumulation as a Source of Growth
    9 Economic Growth II: Population Growth and Technological Progress
    10 Economic Growth III: Growth Empirics and Policy

    Part 4 — Business Cycle Theory: The Economy in the Short Run (weeks 9 - 12)

    11 Introduction to Economic Fluctuations
    12 Aggregate Demand I: Building the IS- LM Model
    13 Aggregate Demand II: Applying the IS–LM Model
    14 The Open Economy Revisited: The Mundell–Fleming Model and the Exchange-Rate Regime
    15 Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment
    16 A Dynamic Model of Economic Fluctuations

    ** Order of material to be covered in class is tentative and subject to change.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    The assessment structure is the following:
    Assessment Task Due Date/ Week Weight Length(Word,Time) Learning Outcomes
    Midterm Exam Prior to Week 6 30% 2 hours 1,2,3,4
    Weekly Online Quizzes weekly 30% 1 hour 1,2,3,4
    Final Exam Exam period 40% 3 hours 1,2,3,4
    Total 100%
    Assessment Detail
    To gain a pass, a total of at least 50% overall must be obtained.


    The midterm exam will be an online open book exam covering weeks 1 though 6. It will contain 40 multiple choice questioons and 2 essay type questions. The mukltiple choice questions will be drawn from your weekly quizzes while the essay questions will reflect the work covered in tutorials.

    Those who miss the mid-semester exam must obtain documentation that satisfies university regulations in order to avoid a grade of zero on the mid-semester exam or assignment. A make-up assessment will only be offered to those who miss the mid-semester exam and obtain accepted documentation.

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process, and may affect marks. Marks cannot be awarded for answers that cannot be read or understood.

    Online Quizzes

    There will be 12 online quizzes, each due by 11:59pm Sunday of each teaching week. Each quiz is 10 questions drawn from a larger pool. You may take each quiz as many times as you wish up until its due date. Only the highest mark will be recorded. Once the quiz due dates has passed, I will reopen the quiz for study purposes where the marks are no longer recorded. You end of sememster grade will be the average of your top 10 quizzes. 

    Final Exam

    The final exam will cover the entire semester's work. It will be in the same format as the midterm except there will be three esays instead of two. The exam will be open book and will have 3 hours to complete it. Please falimiarize yourself with the university open book policy as it pertains to final exams.
    See MyUni for further details on submission.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

    Additional Assessment

    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.