This paper is the sequel to the paper titled "An Exposition of Macroeconomic Issues Using Two-Period Economies I", which was published in this Journal in volume 32, no. 1. The paper consists of two chapters. In the first chapter, we consider the fiscal policy in an endowment economy and then in an economy with production and capital accumulation. We focus in the chapter especially on the Ricardian Equivalence Theorem. In the second chapter, we consider the labor supply decision in a static economy and then in a dynamic environment. We emphasize in the chapter the role of income, intratemporal, and intertemporal substitution effects. These three effects together with the capital accumulation are the key to the understanding of equilibrium approach in macroeconomics.