This course deals with the behavior of the major economy-wide, or aggregate, economic variables. These include the level and growth rate of GDP, the rate of unemployment, the price level and rate of inflation, the rate of interest, the exchange rate, the trade deficit and the government budget deficit. All of these are prominently featured in the news. The purpose of the course is to provide an analytical framework that will enable students to make sense of these economic aggregates. It is important to know not just what they mean and how they are measured, but also how they relate to each other and how they are determined in a market-oriented economy like that of the United States. This in turn will bring us to important issues of economic policy, and the extent to which such policies can and should be used to influence these variables, especially in the context of the interdependent world economy.