Macroeconomics enriches our knowledge of the functioning of an economy by studying the behaviour of national income, output, investment, saving and consumption. It guides us in solving the larger problems of unemployment, economic instability and slow economic growth. Advanced Macroeconomics incorporates the latest developments in the subject and the chapters are organized in topics that are more or less self-contained. The focus of the book is on developing simple theoretical models that provide insight into the reasons for fluctuations in aggregate variables such as an economy s total production of various goods and services, the aggregate level of unemployment, the general level of interest rates, and the overall level of prices. These models explore how shocks or impulses to the economy influence individuals behavior in specific markets and analyze the resulting implications in terms of changes in aggregate variables.

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