Content: National income accounting -- Equilibrium output and employment -- Components of gross domestic product -- Keynesian model of income determination -- Multiplier -- Shifts and slope of IS and LM curve -- Shifts in aggregate demand and aggregate supply -- Monetary and fiscal policy and its effect on the goods and the money market -- Unemployment -- Phillips curve and AS curve -- Dynamic aggregate and demand -- Inflation -- Exchange rate -- Large open economy case -- Balance of payments -- Money supply -- Investment spending -- Demand for money -- Transaction theories of money demand.