In the previous semester, we studied the real side of the economy. In this semester, we start from the monetary market. We then introduce goods market and analyze the impacts of fiscal and monetary policies from both classical and Keynesian point of view in a general equilibrium model. Later, we will reconsider the labor market and discuss the issue regarding unemployment. At the end of this course, we turn to study the model for an open economy and discuss the effects of trade policy and exchange rate policy.