ECON1002 Introductory Macroeconomics, Semester 2, 2023 1

TUTORIAL 1
(Week beginning 31 July)

PRE-CLASS READING: LISTEN TO ‘HOW ECONOMIC MACHINE WORKS’, LINK AVAILABLE

ON MODULE (UNDER ‘WARMING UP & GETTING READY’)

KEY CONCEPTS: MACROECONOMY, GDP, FLUCTUATIONS, LONG-RUN GROWTH.

DISCUSSION PROBLEMS

1. What is macroeconomics about? How is it different from microeconomics?

2. Why would macroeconomics be relevant to businesses and households? Give
some examples.
3. Visit the following website by the Reserve Bank of Australia, Australia’s central
bank, and download the statistical Table H1 under ‘Output and Labour’:
https://www.rba.gov.au/statistics/tables/index.html?v=2022-02-14-16-49-
40#output-labour
a. How much did Australia’s economy grow in terms of real GDP from
‘Dec-2019’ (pre-pandemic) to ‘Mar-2023’ (most recent data)? [Hint: See
Table H1 ‘Column B’].
b. Australia’s economy grew 2.3% between Mar-2022 and Mar-2023. What
contributed to the GDP growth over the period? [Hint: See
https://www.rba.gov.au/chart-pack/au-growth.html]
c. Has there been an increase in living standards as measured by real GDP
per capita growth over the past year? [Hint: See Table H1 ‘Column G’]
What do you think caused the increase (or decrease)?
4. Why do you think the economy fluctuates? What would determine the long-run
economic growth trend?

Tutorial Tasks