This course examines the working of the aggregate economy. It aims to understand the key determinants of business cycle fluctuations and of long-run economic development. This includes coverage of the role of employment, productivity, trade and fiscal deficits, inflation, and interest rates. The emphasis of the course is on the impact of monetary and fiscal policies on the macro economy. Students will be able to analyze and discuss important current economic issues, such as government spending and tax reforms, Social Security reforms, the conduct of monetary policy, and the impact of changing economic conditions around the world.