Ompare and contrast Real Business Cycle theory with theories of the business cycle which assume that demand shocks cause the cycle

Coursework
Write an essay in response to the following question. Observe the instructions detailed
below.
Compare and contrast Real Business Cycle theory with theories of the business
cycle which assume that demand shocks cause the cycle.

Your essay must be submitted online via CitySpace by 5.00 pm on Thursday 5 April
2007. It will not be possible to submit coursework late, so lateness will attract a mark
of zero. No extensions can be granted under the terms of the School coursework
policy.
Coursework essay instructions
Essays will be given a mark which is the aggregate of marks obtained for ten aspects
of the essay, as follows. Each of these mark categories is therefore worth 10%.
Failure to fulfil any aspect of the requirement for a category may result in the loss of
up to ten marks under that heading, but it will very likely result in the loss of further
marks elsewhere. For example, if your English is poor, you will explicitly lose marks
for poor English, but you will inevitably lose further marks to the extent that it
obscures your meaning.
The mark for the coursework essay will be the simple aggregate of the marks obtained
under each category. Nevertheless, I reserve the right to make a judgemental
adjustment, where I believe that the student has made a significant contribution, or the
essay displays significant faults, not adequately accounted for by the aggregate of the
marks for the ten categories. This adjustment will normally not exceed plus or minus
10 percentage points; however, the only real constraint will be my own professional
judgement as to the merits of the essay. For example, a beautifully presented essay,
written in good English, with fantastic diagrams, etc, etc, but which displays no
knowledge of economics, will not attract a mark of 50%! Any adjustment will be
displayed on the script and the reason given.
Presentation (50%)
1 Formatting
2 Diagrams
3 Introduction and conclusion
4 Bibliography and references
5 Standard of English
Content (50%)
6 Correct (or defensible) answer
7 Clear logic
8 Material is well integrated
9 Relevance
10 Critical appraisal
Judgemental adjustment (+/10%)
1. Formatting
The front page will contain your name, and degree programme, the module code, the
question, and a word-count.
number, the text of the question, and a word-count, which should include everything
except the bibliography. Do not exceed 2000 words. Do not use footor end-notes: if
Use an appropriate font, point
size, paragraph length, etc, to maximise legibility and clarity, and to make it easy for
the marker to se
2. Diagrams
Every essay on this module should be well-illustrated by means of diagrams. Use
large at least half-page bold, clear, diagrams. If you want to draw them on
separate sheets, insert notices into the text on the following pattern:
Diagram 1 goes about here.
and insert the relavant pages at the end. It is permissible to use software the
drawing facility in MS Word is fine or to draw them manually and scan them in.
3. Introduction and conclusion
In
introduction should address the question, explaining what it means and how you are
going to go about answering it. It will also include a brief preview of the answer, and
description of the structure of the essay.
The conclusion
ant to discuss the limits of that
answer here for example, considering the consequences of looking at the question
dynamically, using a Phillips curve, or an open-economy model.
The introduction, like the conclusion, may be the last things you write, but it will be
the first thing the marker reads. More help on writing an introduction and conclusion,
and structuring your essay, is available from a variety of sources, include the web. If
in doubt, consult your personal tutor.

4. Bibliography and references
You must include a bibliography. This will contain a list of the sources you have
used, in alphabetical order of the family name of the first author of the item. If you
obtained the item from the internet, say so. Follow this pattern:
For an article:
Research in Political
Economy 20, December, 187-215.
For a book:
Robert Skidelsky (1975) Oswald Mosley London: Macmillan; ch 23
Note that for a book, I want to see the chapter(s) or section(s) you have used.
Including items just to pad out the list, when there is no evidence in the essay that you
have actually used them, will be penalised.
For an internet resource:
Andy Denis (nd) Amazon Customer review of Boudewijn Bouckaert and
Annette Godart van der Kroon (Editors) (2000) Hayek Revisited, Edward
Elgar. Downloaded 13 June 2004 from
detail/-
/books/1858984491/customer-reviews/202-0701428-5605403.
Reference your work thoroughly throughout. Much of the point of written assessment
is to see what youve been reading and what youve got out of it. Use the following
pattern for a reference in the text of your essay:
case has been made elsewhere (Skidelsky, 1975: 302). More text more text
Failure to reference properly defeats much of the purpose and I penalise this heavily.
Plagiarism of any kind is cheating and will lead to disciplinary action.

5. Standard of English
English of a publishable standard will attract ten marks. Incomprehensible English
will attract none. In the past, the overall standard of English has often been very poor.
Also every year a number of people lose marks in the exam by writing illegibly.
Spelling, grammar, syntax, capitalisation and punctuation when weak distract
attention from and often obscure what you are trying to say. Read through your
coursework before submitting it and, if in doubt, get someone else someone whose
first language is English to look through it as well.

6. Correct or defensible answer
This speaks for itself. Your answer should display evidence of wide and thoughtful
reading. In particular, you should show that you have profitably consulted the main
text book (Chrystal & Price) and book of readings (Snowdon & Vane) for this halfmodule.
Simply including them in the bibliography is not enough.

7. Clear logic
Even if you get the answer wrong, through misunderstanding some aspect of the
question, you may still be able to demonstrate your knowledge of the topic and
capacity to manipulate the models, by addressing the question in a clear and logical
explain that in an orderly and coherent manner you are going to lose marks here.

8. Material is well integrated
If asked to compare and contrast two schools of thought, you are not to write about
one school and then about the other with just a brief conclusion comparing them.
Base your essay on a number of dimensions of difference and similarity
expectations formation, market-clearing, policy prescription, etc, and show how each
school of thought scores on that dimension, before moving on to the next point.

9. Relevance
Keep your eye on the ball: ensure that every paragraph, every sentence, every word
does some work and makes a contribution towards answering the question. Do not
just assume that its OK if vaguely related to the topic. For example: if you are going
to use, say, the ISLM or ASAD model, to answer the question, then do it: dont spend
4 pages deriving the framework first! This exercise may be necessary for you, in your
preparation, in order to be able to answer the question, but is not itself part of the
answer and should not be included:

10. Critical Appraisal
Dont just report: evaluate, appraise, criticise. Show some initiative: give your own
opinions; dont be afraid to take sides. Exercise judgement.
4. Bibliography and references
You must include a bibliography. This will contain a list of the sources you have
used, in alphabetical order of the family name of the first author of the item. If you
obtained the item from the internet, say so. Follow this pattern:
For an article:
Research in Political
Economy 20, December, 187-215.
For a book:
Robert Skidelsky (1975) Oswald Mosley London: Macmillan

Ompare and contrast Real Business Cycle theory with theories of the business cycle which assume that demand shocks cause the cycle.

Economic Theory (Macro)
Write an essay in response to the following question. Observe the instructions detailed below.
Compare and contrast Real Business Cycle theory with theories of the business cycle which assume that demand shocks cause the cycle.”
Coursework essay instructions:
Presentation (50%)
1 Formatting
2 Diagrams
3 Introduction and conclusion
4 Bibliography and references
5 Standard of English

Content (50%)
6 Correct (or defensible) answer
7 Clear logic
8 Material is well integrated
9 Relevance
10 Critical appraisal
Judgemental adjustment (+/10%)
1. Formatting
The front page will contain your name, and degree programme, the module code, the question, and a word-count. Writ the text of the question, and a word-count, which should include everything exept the bibliography. Do not exceed 2000 words. Do not use foot-or end-notes: if it is relevant, include it in the text, if not, exclude it.
Use an appropriate font, point
size, paragraph length, etc, to maximise legibility and clarity, and to make it easy for the marker to see what you are doing.
2. Diagrams
Every essay on this module should be well-illustrated by means of diagrams. Use large at least half-page bold, clear, diagrams. If you want to draw them on separate sheets, insert notices into the text on the following pattern:

Diagram 1 goes about here.

and insert the relavant pages at the end. It is permissible to use software the drawing facility in MS Word is fine or to draw them manually and scan them in.
3. Introduction and conclusion
Include an introduction and conclusion to wrap the whole thing up nicely. The introduction should address the question, explaining what it means and how you are going to go about answering it. It will also include a brief preview of the answer, and description of the structure of the essay.
The conclusion will summarise the results of your work, and state succinctly the answer you have given to the question. You may want to discuss to discuss the limits of that answer here -for example, considering the consequences of looking at the question
dynamically, using a Phillips curve, or an open-economy model.
The introduction, like the conclusion, may be the last things you write, but it will be the first thing the marker reads. More help on writing an introduction and conclusion, and structuring your essay, is available from a variety of sources.
4. Bibliography and references
You must include a bibliography. This will contain a list of the sources you have
used, in alphabetical order of the family name of the first author of the item. If you obtained the item from the internet, say so. Follow this pattern:
For an article:
Andy Danis(2002) Collective and individual rationality…
Research in Political Economy 20, December, 187-215.
For a book:
Robert Skidelsky (1975) Oswald Mosley London: Macmillan; ch 23

Note that for a book, I want to see the chapter(s) or section(s) you have used.
Including items just to pad out the list, when there is no evidence in the essay that you have actually used them, will be penalised.
For an internet resource:
Andy Denis (nd) Amazon Customer review of Boudewijn Bouckaert and
Annette Godart van der Kroon (Editors) (2000) Hayek Revisited, Edward
Elgar. Downloaded 13 June 2004 from
detail/-
/books/1858984491/customer-reviews/202-0701428-5605403.
Reference your work thoroughly throughout. Much of the point of written assessment is to see what youve been reading and what youve got out of it. Use the following pattern for a reference in the text of your essay:
..text text text, as suggested by Denis (2002: 210)although the
contrary case has been made elsewhere (Skidelsky, 1975: 302). More
text more text…
Failure to reference properly defeats much of the purpose and I penalise this heavily. Plagiarism of any kind is cheating and will lead to disciplinary action.
5. Standard of English
English of a publishable standard will attract ten marks. Incomprehensible English will attract none. In the past, the overall standard of English has often been very poor. Also every year a number of people lose marks in the exam by writing illegibly. Spelling, grammar, syntax, capitalisation and punctuation when weak distract attention from and often obscure what you are trying to say. Read through your coursework before submitting it and, if in doubt, get someone else someone whose first language is English to look through it as well.
6. Correct or defensible answer
This speaks for itself. Your answer should display evidence of wide and thoughtful reading. In particular, you should show that you have profitably consulted the main text book (1.Chrystal & Price) and book of readings (2.Snowdon & Vane) for this half-module. Simply including them in the bibliography is not enough.
7. Clear logic
Even if you get the answer wrong, through misunderstanding some aspect of the question, you may still be able to demonstrate your knowledge of the topic and capacity to manipulate the models, by addressing the question in a clear and logical manner. On the other hand, you may know what the answer is, but if you cant explain that in an orderly and coherent manner you are going to lose marks here.
8. Material is well integrated
If asked to compare and contrast two schools of thought, you are not to write about one school and then about the other with just a brief conclusion comparing them. Base your essay on a number of dimensions of difference and similarity expectations formation, market-clearing, policy prescription, etc, and show how each school of thought scores on that dimension, before moving on to the next point.
9. Relevance
Keep your eye on the ball: ensure that every paragraph, every sentence, every word does some work and makes a contribution towards answering the question. Do not just assume that its OK if vaguely related to the topic. For example: if you are going to use, say, the ISLM or ASAD model, to answer the question, then do it: dont spend 4 pages deriving the framework first! This exercise may be necessary for you, in your preparation, in order to be able to answer the question, but is not itself part of the answer and should not be included: Answer the question, the whole question, and nothing but the question.”
10. Critical Appraisal
Dont just report: evaluate, appraise, criticise. Show some initiative: give your own opinions; dont be afraid to take sides. Exercise judgement.
Main texts:
1. K Alec Chrystal and Simon Price (3e: 1994) Controversies in Macroeconomics London:
Harvester Wheatsheaf. Essential text.
2. Brian Snowdon and Howard R Vane (eds) (1997) A Macroeconomics Reader London:
Routledge. Essential book of readings.

Background reading:
3. Brian Hillier (2e: 1991) The Macroeconomic Debate: Models of the Closed and Open Economy Oxford: Basil Blackwell. Very useful.
4. Richard T Froyen (6e: 1999) Macroeconomics. Theories and Policies Upper Saddle River: Prentice Hall. Strongly recommended.
5. Journal article: Howard Vane and Brian Snowdon New Classical and New Keynesian Macroeconomics Economics (The Journal of the Economics Association) Vol: XXVII
Part 2 No 118 (Summer 1992) pp 54-61. Very good on the last two topics of the course.
6. Paul Turner (1993) Modern Macroeconomic Analysis London: McGraw-Hill.Good, but out of print.
7. William H Branson (3e: 1989) Macroeconomic Theory and Policy New York: Harper & Row. Parts One and Two provide an excellent account of the basic AS-AD model built up in the early part of the course.
8. Robert J Gordon (6e: 1993) Macroeconomics HarperCollins. Part III -essentially on business cycle theory is particularly useful. The corresponding chapters in the 5th ed are perfectly adequate.