This course provides an introduction to macroeconomic analysis relevant for understanding how a modern economy works. You will learn both about economics as a way of thinking about the world and about the basic characteristics of Turkish and other economies. At the end of the semester not only should you have a better understanding of economics, you should also have a better awareness of the state of the world. Your performance in this class will depend on how well you understand the concepts and how well you relate them to the real world. We will be particularly interested in the determinants of national output, the unemployment rate, the price level (inflation), interest rates, the money supply and the balance of payments, and the role of government fiscal and monetary policy.