• Class Number 4491
  • Term Code 3130
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • Dr Timo Henckel
  • Class Dates
  • Class Start Date 22/02/2021
  • Class End Date 28/05/2021
  • Census Date 31/03/2021
  • Last Date to Enrol 01/03/2021
SELT Survey Results

Macroeconomics is concerned with the operation of the economy as a whole, with attention paid to such things as unemployment, inflation, and interest rates, determination of the level of national income, savings and investment, and the exchange rate and the current account of the balance of payments. The course develops a consistent model of the economy to explore the interactions of key macroeconomic markets and variables and to examine the impacts of different kinds of shocks to the economy and the role of government budgetary and monetary policy in influencing the level of economic activity.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

  1. Understand the core theoretical models used by macroeconomists, in particular the Solow growth model and the AS/AD-model;
  2. Discuss the usefulness and limitations of these models;
  3. Explain and understand some of the associated empirical implications and policy issues;
  4. Critically read and understand many newspaper and magazine articles covering current economic events;
  5. Have a brief overview of some of the institutional features of the Australian economy and some overseas economies.

Research-Led Teaching

While the course’s mission is to teach macroeconomic principles, a strong emphasis will be placed on critical thinking. The lecturer is an active researcher, with expertise in macroeconomics, monetary economics, international finance and behavioural economics. Whenever possible, he draws attention to new ideas and evidence in macroeconomics.

Examination Material or equipment

The final exam will be administered by the central examinations office. Exact format and further details about the exam will be provided towards the end of the semester.

Required Resources

The following textbook will form the basis for much of this course:

·         Bernanke, Ben, Nilss Olekalns, Robert Frank, Kate Antonovics, and Ori Heffetz, Principles of Macroeconomics, 5th edition, Sydney: McGraw Hill, 2019. Copies of this book have been placed on 2-hour loan in the Chifley library. An online version of the textbook is also available through the ANU library website.

Earlier editions of Bernanke et. al., in particular the third and fourth editions of this textbook are also acceptable, though not ideal.

Other materials, available online, will also be prescribed to supplement the text on certain topics. These links will be provided on the Wattle site in advance of the relevant lectures.

Other useful texts for the course include:

 ·        Hubbard, R. Glenn, Anne M. Garnett, Philip Lewis, and Anthony O’Brien, Macroeconomics, 4th edition. Melbourne: Pearson, 2018.

 ·        Colander, David, Macroeconomics, 8th edition, New York: MacGraw-Whill, 2009.

 ·        Mishkin, Frederic S. Macroeconomics: Policy and Practice, New York: Pearson, 2012.

 ·        Stonecash, Robin, Joshua Gans, Stephen King, and N. Gregory Mankiw Principles of Macroeconomics, 5th edition, Melbourne: Cengage Learning, 2012.

I strongly recommend the following two open-source (free) macro texts:

·         CORE, The Economy, available at http://www.core-econ.org

·         OpenStax College. (2014). Principles of Macroeconomics, 2nd  edition. Houston, TX: OpenStax CNX. https://openstax.org/details/books/principles-macroeconomics

You should try to stay abreast of current events and regularly read the business and economics sections of leading newspapers and magazines (The Economist, Financial Times, Australian Financial Review, the Guardian, etc.)

Staff Feedback

Students will be given feedback in the following forms in this course:

•   The solutions to tutorial assessments and mid-semester exams will be covered in class.

•   Written comments, if relevant, will be included in the tutorial assessments returned to students.

•   Verbal comments, if necessary, will be provided during consultation time.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Course description

This is a class about macroeconomics; that is, the economy as a whole. It differs from micro- economics which focuses on components of the economy. And it also differs from micro- economics in assuming that the whole of an economy may not always behave like the sum of the parts, especially in the short-run. Key macroeconomic policy and economic questions and ideas we will cover include: National Income Accounting; economic productivity and growth across a national or regional economy; management of the business cycle through fiscal and monetary policy tools; Aggregate Demand and Aggregate Supply models; and tools to measure and monitor a macro-economy. This course will take an economic history approach, starting by looking at the Great Depression of the 1930s (which rightfully can be said to have given birth to the field) and going on to other key historical episodes up to the present day as illustrations of macroeconomics in practice. We will also examine the way macroeconomic thought has evolved, especially in response to real-world events. Macroeconomics is very much a field in which failure of models in the field often leads to rather quick re-thinking and re-formulation of ideas.

Course delivery

The Pass component of Macroconomics 1 (ECON1102) consists on three hours of lecture and a one-hour tutorial per week (see the timetable for details on dates, times and locations). Tutorial meetings start in week 2 (See tutorial registration details below).

•      Lectures: It is expected that students attend lectures whenever possible and come prepared to them. The handouts for each topic (primarily PPTs) will be available before the lectures in Wattle. The relevant references are included in the last page.

•      Tutorials. It is expected that students prepare for tutorials in advance and come ready to answer questions about the problems assigned for each week's tutorial. The details about tutors are available in the contacts section and more detailed information about tutorials can be found in the folder “Tutors and tutorials” in Wattle.


Please contact the administrative office for further guidance.


Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures or tutorials will be posted on the door of the relevant room.

Additional Assessment Information

As a further academic integrity control, students may be selected for a 15-minute individual oral examination of their written assessment submissions.

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.


Class Schedule

Week/Session Summary of Activities Assessment
1 Unless otherwise specified, chapter numbers refer to the Bernanke et al. textbook. You will be told in advance which sections in the textbook are relevant. For some topics additional sources will be necessary. These will be made available to you prior to the respective lecture(s). This course summary is indicative only. Depending on how the course progresses, the weighting of some topics may change and some topics may be dropped or added. Introduction (Ch 1)
2 Measuring the Economy (Chs 2 & 3)
3 Measuring the Economy (Chs 2 & 3)
4 Saving, Investment and Wealth (Ch 4) The Labour Market (Ch 5)
5 The Labour Market Cont'd (Ch 5) Economic Growth (Chs 13-15) Assignment 1
6 Economic Growth Cont'd (Chs 13-15)
7 Introduction to the Short-Run Model of the Economy (Ch 6) The Short-Run Model of the Economy (Chs 7-8) Midterm Online Quiz
8 The Short-Run Model of the Economy Cont'd (Chs 9-10)
9 The AS-AD Model of the Economy (Chs 11) Monetary and Fiscal Policy (Chs 8, 10 & 12)
10 Monetary and Fiscal Policy Cont'd (Chs 8, 10 & 12)
11 Open Economy Macroeconomics (Chs 17-18) Assignment 2
12 Open Economy Macroeconomics Cont'd (Chs 17-18) Miscellanea and Behavioural Macroeconomics
13 Examination Period Final Exam

Tutorial Registration

There will be both face-to-face and online tutorials. Enrolment in tutorials will be completed online through Wattle. Further details will be provided at the beginning of the semester.

Assessment Summary

Assessment task Value Due Date Return of assessment Learning Outcomes
Tutorial Achievement 10 % 22/02/2020 28/05/2020 2,3,4
Assignment 1 15 % 22/03/2020 02/04/2020 2,3,4,5
Midterm Quiz 15 % 20/04/2020 20/04/2020 2,3,4,5
Assignment 2 15 % 17/05/2020 28/05/2020 1,2,3,4,5
Final Examination 45 % 03/06/2020 19/06/2020 1,2,3,4,5

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details


ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.


Students taking this course are expected to commit at least 11 hours a week to completing the work. This will include:

·        3 hours a week: lecture

·        1 hour a week: tutorial

·        Approx. 6 hours a week (including the non-teaching break): reading, research, writing, lecture and tutorial preparation

10% of the overall course grade are awarded for tutorial participation (achievement). Hence, students are strongly encouraged to attend the tutorials.

It bears repeating: attendance at all teaching events, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b). Outside work commitments are, generally speaking, not acceptable grounds for missing tutorials and lectures. Furthermore, for pedagogical reasons, based on 15+ years of experience, worked solutions of the weekly problem sets will not be provided. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial class one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.


Please see information above, under assessments.

Assessment Task 1

Value: 10 %
Due Date: 22/02/2020
Return of Assessment: 28/05/2020
Learning Outcomes: 2,3,4

Tutorial Achievement

Tutors will evaluate students' demonstration of these learning outcomes, described in the class summary, in each tutorial. 1 mark for demonstration of complete understanding of learning outcomes 2, 3, and 4; 0.5 marks for demonstration of partial attainment; and 0 marks for demonstration of no attainment. Consequently, students are strongly encouraged to come to tutorials prepared, having clearly attempted the weekly problem sets and reviewed the lecture material. The overall tutorial achievement mark, which makes up 10% of the overall course grade, will be the arithmetic average of the 9 highest marks obtained in the 11 tutorials.

Assessment Task 2

Value: 15 %
Due Date: 22/03/2020
Return of Assessment: 02/04/2020
Learning Outcomes: 2,3,4,5

Assignment 1

15%, compulsory & non-redeemable

Take-home tasks to be handed in writing (typed answers only) through Turnitin, involving problem-solving questions and modelling exercises.

These are individual assignments. The topics will be made available on Wattle 10 days prior to the due date. We will endeavour to return the marked assignments before the end of week 6.

Assessment Task 3

Value: 15 %
Due Date: 20/04/2020
Return of Assessment: 20/04/2020
Learning Outcomes: 2,3,4,5

Midterm Quiz

15%, compulsory & non-redeemable

There will be one midterm quiz, testing the entire material covered in the first six weeks. It will be held on a late afternoon/early evening of week 7. The exact time will be announced as soon as practical to avoid any clashes with other midsemester examinations.

The mid-term quiz will consist of multiple choice questions only and will be delivered online. Students will have approx. 25 minutes to complete a random selection of questions from a bank of multiple choice questions. The quiz will be accessible for one hour only, so students need to make themselves available for the quiz, just like for any other exam. Further details about the quiz will be provided in week 6.

Assessment Task 4

Value: 15 %
Due Date: 17/05/2020
Return of Assessment: 28/05/2020
Learning Outcomes: 1,2,3,4,5

Assignment 2

15%, compulsory & non-redeemable

Take-home tasks, similar to Assignment 1, to be handed in writing (typed answers only) through Turnitin, involving problem-solving questions and modelling exercises.

Assessment Task 5

Value: 45 %
Due Date: 03/06/2020
Return of Assessment: 19/06/2020
Learning Outcomes: 1,2,3,4,5

Final Examination

45%, compulsory & non-redeemable

Probably 150 minutes

The final exam will test the entire material covered throughout the semester, with an emphasis on the second half of the course. (Roughly one third of the exam will cover the first half of the course, and two thirds of the exam will cover the second half of the course.) It will be held during the university examination period.

The format of the final exam has not yet been determined. Most likely, it will consist of three parts. The first part contains multiple choice questions (MCQ). The second part contains “short answer” questions (SAQ) that typically focus on a single concept. Good answers to these questions range from a couple of sentences to approx. half a page, rarely longer. The third part contains “long answer” questions (LAQ), with several sub-questions, which test your technical skills as well as your general understanding, intuition and knowledge of macroeconomics. Students will be notified by week 8 of the exact format of the exam.

 Answers on exams should be clear, neat, relevant and concise. Students will be given a practice exam (with answers) to prepare for the exam.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

In addition to online submissions, students will be asked to submit the identical assignment as a hardcopy in the appropriate assignment boxes next to the RSE student desk. (Details will follow when the assignment is given to the students.) Please keep a copy of tasks completed for your records.

As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions. Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Late Submission

Late submission of assessment tasks without an extension are penalised at the rate of 10% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 5 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

The assignments will be returned during the tutorials and/or lectures as soon as they are marked. An announcement will be made in Wattle.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

Re-submission of assignments is not possible.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

Dr Timo Henckel
6125 5540

Research Interests

Macroeconomics, Monetary economics, International finance, Behavioural economics

Dr Timo Henckel

By Appointment

Responsible Officer: Registrar, Student Administration / Page Contact: Website Administrator / Frequently Asked Questions