Econ Q's

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SCHOOL OF ECONOMICS

ECON 2104 APPLIED MACROECONOMICS

SESSION 1, 2010

TUTORIAL PROGRAM

Weeks 2-7

NOTE

Each student will be allocated a Discussion Question from Weeks 2-7. Students allocated a particular question should be prepared to lead a discussion of how to answer the question in the tutorial class for which the question is scheduled.

Students must then submit to their tutor a written answer to the Discussion Question (maximum 1000 words) in the tutorial class in the following week.

The submitted paper is worth 20% of the total subject mark.

Topic 1 Week2

Macroeconomic Problems and Policies

Review Questions

1. Briefly summarise Australia’s macroeconomic experience with respect to growth in GDP over the last two decades (since 1990). Compare this experience with that of other developed countries.

2. Explain the distinction between macroeconomic policy and microeconomic policy

3. List and briefly explain the instruments of macroeconomic policy.

Discussion Question

1. Consider the main macroeconomic policy problems and explain how each is related to the rate of growth in the nation’s aggregate production of goods and services (GDP).

Topic 2 Week 3

Unemployment

Review Questions

1. Suppose that, over a given year, Output grows by 4 per cent, the Labour Force grows by 2 per cent, and Output per person employed grows by 3 per cent.

(a) What are the implications for Employment and the Unemployment Rate?

(b) How are your answers to (a) affected if Output per person employed grows by 1 per cent

rather than 3 per cent?

2. What factors explain changes in Output per person employed?

What factors explain the rate of growth of the Labour Force?

3. Explain the concept of "Search Unemployment". What factors generate changes in the level

of “Search Unemployment”?

4. Explain the concept of "Structural Unemployment". How might the extent to which

unemployment is structurally...