This chapter introduces macroeconomic analysis, which looks at the whole economy. The starting point for this is to consider the circular flow of income in the economy and the aggregate demand of the economy.

This chapter explores the concept of aggregate supply and the interaction of aggregate supply and aggregate demand.

This chapter explores the concepts of the multiplier and accelerator effects, and how those influence changes in aggregate demand and supply.

This chapter explores the concept of short run and long run economic growth, its causes and implications.

This chapter explores the policy objective of economic development, and the relationship between economic growth and development.

This chapter explores the concept of employment and the policy objective of full employment.

This chapter explores the concept of inflation, and the policy objective of low and stable inflation.

This chapter explores the concept of balance of payments, and the policy objective of stable balance of payments.

This chapter explores the concepts of income, wealth, and welfare, as well as the policy objective of fair income distribution.

This chapter explores the concept of fiscal policy and its role in influencing the aggregate demand in the economy.

This chapter explores the concept of monetary policy and its effectiveness, as well as provides the overall evaluation of demand side economic policies.

This chapter explores the concept of supply side policy and its effectiveness.

This chapter explores the concepts of the Phillips Curve and policy conflicts.

This chapter explores the concept of global trade, and the patterns of the US international trade over time.

This chapter explores the concepts of exchange rates and exchange rate systems.

This chapter explores the concept of globalization and its impact on trade.

This chapter explores the concepts of trade policies, their benefits and problems, as well as trade agreements.

This chapter explores the concepts of types of money in the economy and interest rate.

This chapter explores the concept of the financial sector, which has been seen as a most important part of the macroeconomy.

This chapter explores the concepts of financial regulation and central banking.