EC2002 Macroeconomic Principles II Coursework

This document provides detailed guidelines and frequently asked questions for the EC2002 Macroeconomic Principles II coursework assignment. It clarifies expectations regarding the structure of the assignment, including the need for a single introduction and conclusion, the acceptance of hand-drawn diagrams, and the inclusion of diagrams either in the main text or an appendix. The document also specifies that the word count includes only the main text, excluding bibliography, figure captions, and footnotes, with a 300-word buffer before penalties apply. It emphasizes the importance of using algebra, graphical illustrations, and clear explanations. Furthermore, it highlights the need for proper citation and a complete bibliography. The assignment requires a theoretical part with diagrams illustrating the effects of a decrease in consumer confidence and the impact of fiscal and monetary policies, as well as an empirical part using actual data to support the theoretical findings. The document also advises students to discuss any discrepancies between theory and data, showing an overall understanding of both. Chapters 3-7 and 19-21 are recommended for theoretical background and European economic context.

EC2002 Macroeconomic Principles II
Coursework assignment FAQ and further guidelines
1. Should I answer all three questions?
Yes, consider the three questions as three sections of the same assignment. But note that
you only need to write one introduction and one conclusion that present the main points
about the assignment.
2. Can I draw diagrams by hand and scan them to include them into the document?
Yes, absolutely fine. Just remember you need to submit the assignment electronically.
3. Can I attach the diagrams/tables at the end in an appendix?
Yes, you can either include them in the main text or put them in the appendix. Just make
sure you refer to them clearly in the text.
4. What is included in the word count?
The word count includes the main text only (including introduction and conclusion) but
does not include bibliography, figure captions, footnotes. Also, the word count will be
increased by a further 300 words before any penalty will kick in. However, remember this
is not a minimum it is a maximum and always aim at concise answers.
5. You can use algebra to derive the result, however, you will also need to illustrate the answer
graphically and explain it in words.
6. Also pay attention to citing your sources in the text as well as writing complete bibliography
at the end of your document (check ‘How to cite.ppt’ on Blackboard for instructions on how
to do this).
In general, a good assignment will show the following elements:
The theoretical part (paragraphs 1 and 2 of the assignment) should include diagrams that
illustrate the short-run effects of a decrease in consumer confidence as well as the effects of
fiscal and monetary policies (if any).
1. Diagrams: Drawn correctly, curves and axis named correctly; curves shift in the direction.
You will basically need at most 1-2 graphs per theoretical part, that is, one to show the
impact of the initial shock and then another to illustrate the effects of the monetary-fiscal
policy-mix.
2. Explanations: Correct intuition (explanation), not just the stating to which direction the
variables move but explaining the mechanism behind the movement.
As for the empirical part (the third paragraph), it should consist of actual data on the
various variables that you discuss in the theoretical part. Since we are talking about short-
run, a time horizon of about 5 years will be sufficient. Data should be presented in a clear
and informative way, preferably in a table. There should be discussion about whether the
data is consistent with the theoretical expectation, i.e., the results you got from the
theoretical part. Even if the data does not fully agree with the theory, it is not automatically
wrong. Do not try to force the data to match the theory or visa versa. But you need to discuss

why the two diverge if they diverge. The main thing is to show a connection between theory
and data and show an overall understanding of both.
Generally, chapters 3-7 provide the main theoretical foundation for the assignment. You may
also want to read chapters 19-21 for general information about European economic
situation within the last 15 years.