The aim of this lesson is to define national income, employment, development, inflation, the balance of payment as main macro variables. The effects of monetary and public finance policy on these variables are studied. In that sense, explaining how to establish the relationship among money, monetary market and macro economy in theory is aimed.

Determination of National Income, National Income Effects of Aggregate Supply, National Income in an Open Economy, Monetary and Fiscal Policy, IS-LM Analysis, Open Economy.