Written for the first undergraduate principles of macroeconomics course in colleges and universities. The first Canadian edition was successfully used in all provinces of the country. This student friendly principles of economics textbook has been praised in reviews for its accessibility. One of the authors' primary concerns is to instill "economic sensibility" in the student. The text emphasizes the intellectual and historical context to which the economic models are applied.


New Features :

• Chapter 9: Aggregate Demand, Aggregate Supply, and Modern Macroeconomics, offers a careful, uncomplicated, and standard explanation of the shift factors of aggregate demand, and then shows students how to apply the models to the real world. The Canadian edition has included an upward-sloping short-run aggregate supply curve as well as a traditional aggregate demand curve. The models are relevant to the Canadian environment so students understand the how and why of macroeconomics and macroeconomic policy.
• Repositioned money and banking chapter. Chapter 13, Money, Banking and the Financial Sector, now forms part of a more standard sequence. It comes after the discussion of theory and immediately before the monetary policy chapter
• Repositioned money and banking chapter. Chapter 13, Money, Banking and the Financial Sector, now forms part of a more standard sequence. It comes after the discussion of theory and immediately before the monetary policy chapter
• A change in focus from deficits to surpluses. The revised, briefer Chapter 12, Politics, Deficits, Surpluses, and Debt, reflects current reality by shifting emphasis from deficits to surpluses
• A simplified presentation of inflation. Chapter 15, Inflation and Its Relationship to Unemployment and Growth, has been simplified considerably and has a contemporary policy focus with examples from Chile, Finland, Brazil, and New Zealand.
• A new Chapter 18, Tools, Rules and Policy, capitalizes on the second edition's thoroughly integrated theory and policy discussions and helps students prepare for the final exam by tying together tools, institutions, and policy discussions.
• Eliminate the use of metaphors: The invisible handshake and the invisible foot metaphors of the 1st edition have been eliminated. Social and political factors are still discussed.
• Shorter: In the 2nd edition we have tried to eliminate detours from the main topic so students could focus on the core content. This provides a cleaner, shorter, more straightforward presentation of the central ideas of economics. Proof Chapter 3: The Canadian Economy in a Global Setting, combines 1st edition Chapters 4 and 5. This chapter is much shorter and surveys the issues while saving the analysis for later on in the macroeconomic coverage.
• Innovation and Globalization: The revision emphasizes the digital revolution, which affects both technology and innovation, and globalization and its affect on growth. Nearly every chapter includes some discussion of one, the other, or both. An entire chapter, Chapter 8, Growth, Productivity, and the Wealth of Nations, focuses on technology and growth.
• Chapter 4: Supply and Demand, now discusses shift factors of demand and supply individually
• Chapter 5: Using Supply and Demand shortly after their introduction gives students the opportunity to apply those shift factors to the real world where multiple shift factors may impact the economy simultaneously.
• Expanded and earlier coverage of growth: New Chapter 8, Growth, Productivity, and the Wealth of Nations, presents the long-run framework that determines potential income and growth before presenting the short-run framework relevant for fluctuations. This change reflects the growing interest in the long run and sets the stage for an integrated discussion of macro policy.