Key Changes

• Streamlined the descriptions of historical behaviour of the six important Macroeconomic variables in Chapters 1, and reduced repetitions in Chapter 2.
• Moved the description of the Barro Growth model to an Appendix in Chapter 3.
• Moved Sections 4.2 (Canadian Economic Growth) and 4.3 (Economic Growth in Canada and the U.S.) to Chapter 1.
• Moved substantial part of the math in Chapter 6 to an Appendix and explained most of the results using diagrams.
• Improved discussion on financial innovations and expanded inflation tax in Chapter 7.
• Restructured Chapters 8 to 10:
  • Chapter 8 had a comprehensive treatment of the Income-Expenditure approach with exogenous interest rates.
  • Chapter 9 had a comprehensive discussion of the IS-LM model.
  • Chapter 10 discussed the Aggregate Supply-Aggregate Demand Model.

Pedagogical Features

• Five kinds of boxes through the book:
  • Tools boxes: remind students of some of the algebraic and conceptual tools economists use.
  • Details boxes provide for those who want to dig deeper into a particular subject.
  • Policy boxes provide for those who want to know how the current thread of the book affects the making of economic policy.
  • Examples boxes show how the concepts, ideas, and models of the current main thrust of the book can be applied.
  • Data boxes apply real data to the concept.
• Chapter Opening Questions: Questions can be answered after studying the chapter.
• Key Equations: Key equations are numbered and are summarized at the end of chapter.
• Recap boxes: These Recaps attempt to put the main ideas of the previous section into a nutshell.

End of Chapter Features:

• Chapter Summary: are designed to review the most important concepts presented in the chapter.
• Key Terms and Equations: The list of key terms found at the end of the chapter can be used by students as a study aid to test their comprehension and retention. As well, for those chapters containing equations, a list of key equations is provided for easy reviewing purposes.
• Analytical Exercises: are tied to the theoretical material in the book.
• Policy Exercises: are tied to recent events.