The economy has always been the linchpin upon which every society and country revolves. Economics are behind the apparent and hidden cause of social and political and governmental changes. Hence, it is self-evident that economics affect and sustain all aspects of society, policy and culture in Israel, just as in every other country.

This unit deals with various theories and models for the administration and development of a national economy. Various economic-social theories will be analyzed regarding the Israeli economy, and discussion will focus on the connection between policy and the economy, and the implications the political processes have for the Israeli economy.