Use of models of household and firm behavior and equilibrium analysis to study macroeconomic issues. Competing theories of aggregate fluctuations, including real business cycle theory and the New Keynesian model. Effects of fiscal and monetary policy on rhe economy in both the short and long run. Recommend for students interested in pursuing graduate study in economics. Prerequisites: 01:220:320, 321 and 322; 01:640:136 or 152. Credit not given for both this course and 16:220:586.