This course modifies and extends the standard models studied in introductory macroeconomics course (2123), highlighting the role of expectations in determining the aggregate output, the inflation, and the asset prices. The course consists of two parts: (A) lectures on the models and their applications on the economics issues such as monetary and fiscal policies, financial crises, and exchange rate policies; and (B) group research projects undertaken by the students to apply macro models, statistical and econometrics tools to analyze a real-world question of their pick, in order to gain better understanding of the models and to practice the skills on problem solving, team-work and presentation. For BBA ECON and Minor in Business Students only.