Unit 4 - MACROECONOMIC THEORY AND ECONOMIC POLICY

This unit focuses on understanding the business cycle using the aggregate expenditure model and the aggregate demand-aggregate supply model. Students examine recent macroeconomic data to analyse the performance of the economy. This unit also explores how economic policies, including fiscal policy, monetary policy and policies that promote productivity, operate in the pursuit of the Australian Government’s economic objectives. Students apply the language, theories and tools of economics to analyse the effectiveness of these policies.