The course enables students to understand how the economy operates as a whole. It introduces to students the basic economic indicators, the underlining economic forces and the roles of the public and private sectors, enabling students to apply basic economic theories and models to explain contemporary economic issues. The course introduces to students the basic economic indicators such as gross domestic products, inflation, unemployment interest rate and their measurement. Concepts such as money supply and demand, the stock market, aggregate demand, fiscal and monetary policies and macroeconomic theories, including the Monetarism and New Classical theory will be discussed in the course.

CILO-1: Demonstrate the recognition on the behavior of households, firms and governments within a country as well as the economic interactions among countries. CILO-2: Predict and critique the effects of fiscal policy, monetary policy and exchange rate policy adopted by the government. CILO-3: Diagnose and identify the changes in key macroeconomic variables (e.g. output, consumption, investment, interest rate, unemployment rate, inflation rate, exchange rate and trade balance) by the AD-AS model in the short run and in the long run.