Introduction to New Classical Theories R.lucas Supply Function Rational Expectations and R.lucas Criterion Policy Implications Comparisons between New Classical and Keynesian Theories

Some facts in business-cycle Real-business-cycle theory's explanation to some important economic variables Explanation to the fluctuations of output, consumption investment Explanations to employment fluctuation Explanations to monetary fluctuation Evaluation to Real-business-cycle theory

Topics to be Discussed 11.1 Summary Initial research about the economic growth The definition about the economic growth Weighing standard about the economic growth Headspring of the economic growth Economic growth and economic development

Content A simple closed model The static solution of simple model Basic concepts of disequilibrium theory

5.1 The Goods Market Equilibrium and IS Curve 5.2 Financial Markets and LM Curve 5.3 Goods and Financial Markets: IS- LM Model

Topics to be Discussed Basic principles of building macroeconomic model Micro basis of macroeconomics &Choices of households Choices of firms Introduction to labor market

Topics to be Discussed National Income Accounting and the Balance of Payments other concepts The determination of exchange rate floating exchange rate system Fixed exchange rate system Trade environment and policy o Summary of the open economy

9.1 Decision of investment 9.2 Investment function 9.3 Inventory investment& Investment in residential structures

8.1 Keynesian consumption function 8.2 A simple two-period model 8.3 Consumption theory after Keynes Permanent-income Hypothesis Life-style Hypothesis 8.4 Real interest& decision-making- between consumption and saving

7.1 Fiscal policies and effects 7.2 Monetary policies and effects 7.3 Policy mix 7.4 Economic fluctuation and eliminating the fluctuations with economic policies 7.5 Macroeconomic policy practice