This course deals with the principles determining the course of a nation's aggregate economy, with special emphasis on the United States economy. The factors determining a nation's output and employment, the causes and consequences of inflation and unemployment, the forces determining a nation's rate of economic progress, the consequences of large federal budget and international trade deficits, and related issues will be analyzed. The course will be heavily concerned with economic policy----what would be the consequences of raising the minimum wage? What are the causes of the increasing inequality of income and wealth in the United States, and what policies might effectively arrest this trend? How is the Federal Reserve able to control U.S. interest rates? What reforms of our tax system would contribute to economic growth, economic efficiency, and conform to society's norms of equity? In view of environmental and geopolitical considerations, what would constitute an appropriate U.S. energy policy? U.S. macroeconomic history from the Great Depression of the 1930s to the present will be analyzed in the context of analytical tools developed in the course.