This main goal of this course is to convey how students think about macroeconomic issues . The main tools that economists use in analysis are models that are informed by economic theory. However, understanding the relevance of these models and the underlying theory requires an understanding of how the models are applied in practice, as well as knowing something about the historical context in which the models were developed. Thus, the course will put as much emphasis on both the empirical track record of macroeconomic theories and on the history of macroeconomic thought as it will on macroeconomic theory itself.

Classical Theory, Say’s Law, Keynesian Theory of Income and Employment, Consumption Function: Propensity to Consume and Propensity to Save, GDP, NDP, GNP and NNP.