Schmeiser, StevenGifford, JaniceRobinson, MichaelHartley, JamesGongadze, Tea2013-05-102013-05-102013-05-10http://hdl.handle.net/10166/3229The purpose of this thesis is to discuss the development of the macroeconomic models in perspective and analyze recent models dominating the economics theory along with discussing a new dynamic model which considers all criticisms of the prior models and incorporates different approaches to the economic fluctuations. I am representing several crucial modifications in this model. After running several experiments, the model claimed that incorporating rational expectations in the model helps to present better predictions regarding the economy.en-USmacroeconomic modeldynamic modeleconomic fluctuationrational expectationsKeynesIS-LM ModelDAD-DAS modeldemand shocksupply shockrisk shockAlpanda, Honig and WoglomTaylor RuleOkun's LawPhilips CurveThesispublic