This course examines the workings of the aggregate economy. It aims to understand the key determinants of business cycle fluctuations and of development and long-run growth. Focus is on current economic research on the determination of macroeconomic variables such as output, employment, prices, and the interest rate — in the short, medium and long-runs, and addresses a number of policy issues. In addition, it covers the role of employment, productivity, trade and fiscal deficits, inflation, interest rates. The emphasis of the course is on the impact of government policies on the macroeconomy. Required of all first year MPP students.