Macroeconomics, Canadian Edition, 9th edition
Published by Pearson Canada (January 12, 2021) © 2022
  • Andrew B. Abel
  • Ben S. Bernanke
  • Dean Croushore
  • Ronald D. Kneebone

Title overview

For courses in Intermediate Macroeconomics.

Macroeconomics presents macroeconomic theory in a big-picture way. The text focuses on a single model, providing students with a clear understanding of macroeconomics and its classical and Keynesian assumptions. It has students analyze real economic data used by policy makers and researchers while also making it easy for instructors to align chapters to fit their own syllabi.

The Canadian edition tightens its focus on the critic issues of macroeconomics, and introduces changes to better fit with how instructions teach intermediate macroeconomics.

Hallmark Features

  • Detailed, colour graphs. The book is liberally illustrated with data graphs, which emphasize the empirical relevance of theory, and analytical graphs, which guide students through the development of model and theory in a well-paced, step-by-step manner. Both types of graphs include descriptive captions that summarize the details of events shown in the graph.
  • Key Diagrams. Key Diagrams, a unique study feature found at the end of selected chapters, are self contained descriptions of the most important analytical graphs in the book (see the list in the Contents for their locations). For each Key Diagram, we present the graph (the production function, Chapter 3, or the IS–LM–FE diagram, Chapter 9, for example) and define and describe its elements in words and equations. We then present an analysis of what the graph reveals and discuss the factors that shift the curves in the graph.
  • Summaries. Throughout the book, summaries compile the main results of analyses. These summaries reduce the amount of time the student must spend learning and writing results, allowing a greater concentration on understanding and applying these results.
  • End-of-chapter review materials. To facilitate review, at the end of each chapter, the student will find a chapter summary, covering the chapter’s main points; a list of key terms, with page references; an annotated list of key equations; and review questions for self-testing.
  • End-of-chapter problems. An extensive set of problems for practice and review (more than 160 in all) includes numerical problems, which have explicit numerical solutions and are especially useful for checking students’ understanding of basic relationships and concepts; and analytical problems,which ask student to use or extend theories qualitatively. Answers are provided in the Instructor’s Manual.
  • Review of useful analytical tools. Although we use no mathematics beyond high school algebra, some students will find helpful a review of the main analytical tools used in the book. The Appendix (at the end of the text) succinctly discusses functions of one and several variables, graphs, slopes, exponents, and formulas for finding the growth rates of products and ratios.

The 9th edition of Abel will retire on June 1, 2026. Please speak to your rep about updating your course to the new 10th edition.

New and updated features of this title

This edition has updated existing discussions of the effects of oil price shocks, the measures and consequences of government debt, the changing nature of foreign investment, and the lessons learned from the 2007–2009 financial crisis for the regulation of the financial sector. As the text was going to print, the economy was feeling the full effects of the COVID-19 pandemic. Although far too early to describe the impact of the pandemic on the economy, it is important to note that our new emphasis on the role of fiscal policy for stabilizing the economy and the importance of understanding the size of the fiscal policy multiplier for determining the likelihood of those policies being successful is well timed.

Key features

Important Digital Assets in MyLab Economics

  • Digital Interactives. Economic principles are not static ideas, and learning them shouldn't be either. Digital Interactives are dynamic and engaging assessment activities that promote critical thinking and application of key economic principles. Each Digital Interactive has 3–5 progressive levels and requires approximately 20 minutes to explore, apply, compare, and analyze each topic. Digital Interactives can be assigned and graded within MyLab Economics or used as a lecture tool to encourage engagement, classroom conversation, and group work.
  • Single Player Experiments. Experiments are an easy-to-use, fun, and engaging way to promote active learning and mastery of important economic concepts. Single-player experiments allow students to play against virtual players from anywhere at any time so long as they have an Internet connection. Pre- and post-experiment questions are available for assignment within the MyLab.
  • Interactive Models allow students to manipulate a graph to explore a macroeconomic concept. They often include the ability to explore real data.
  • Real-Time Data Graphs accompany many of the key graphs and figures in the text and have been updated with real-time data from the Federal Reserve Bank of St. Louis's FRED™ site. These animated graphs help students understand shifts in curves, movements along curves, and changes in equilibrium values.

Table of contents

  1. Introduction to Macroeconomics
  2. The Measurement and Structure of the Canadian Economy
  3. Productivity, Output, and Employment
  4. Consumption, Saving, and Investment
  5. Saving and Investment in the Open Economy
  6. Long-Run Economic Growth
  7. The Asset Market, Money, and Prices
  8. Business Cycles
  9. The IS–LM–FE Model: A General Framework for Macroeconomic Analysis
  10. Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy
  11. Classical Business Cycle Analysis: Market-Clearing Macroeconomics
  12. Keynesian Business Cycle Analysis: Non–Market-Clearing Macroeconomics
  13. Unemployment and Inflation
  14. Monetary Policy and the Bank of Canada
  15. Government Spending and Its Financing

Author bios

Andrew B. Abel, The Wharton School of the University of Pennsylvania

Ronald A. Rosenfeld Professor of Finance at The Wharton School and professor of economics at the University of Pennsylvania, Andrew Abel received his A.B. summa cum laude from Princeton University and his Ph.D. from the Massachusetts Institute of Technology. He began his teaching career at the University of Chicago and Harvard University and has held visiting appointments at both Tel Aviv University and The Hebrew University of Journalism.

A prolific researcher, Abel has published extensively on fiscal policy, capital formation, monetary policy, as-set pricing, and Social Security—as well as serving on the editorial boards of numerous journals. He has been honored as an Alfred P. Sloan Fellow, a Fellow of the Econometric Society, and a recipient of the John Kenneth Galbraith Award for teaching excellence. Abel has served as a visiting scholar at the Federal Reserve Bank of Philadelphia, as a member of the Panel of Economic Advisers at the Congressional Budget Office, and as a member of the Technical Advisory Panel on Assumptions and Methods for the Social Security Advisory Board. He is also a Research Associate of the National Bureau of Economic Research and a member of the Advisory Board of the Carnegie-Rochester–NYU Conference Series.

Ben S. Bernanke, Brookings Institution

Ben Bernanke is currently Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution. From February 2006 to January 2014, he was Chairman of the Board of Governors of the Federal Reserve System. Before that, he served as Chair of the President's Council of Economic Advisors from June 2005 to January 2006 and was a Governor of the Federal Reserve System from August 2002 to June 2005. Prior to his work in public service, he was the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs at Princeton University. He received his B.A. in economics from Harvard University summa cum laude—capturing both the Allyn Young Prize for best Harvard undergraduate economics thesis and the John H. Williams prize for outstanding senior in the Economics Department. Like coauthor Abel, he holds a Ph.D. from the Massachusetts Institute of Technology.

Bernanke began his career at the Stanford Graduate School of Business in 1979. In 1985 he moved to Princeton University, where he served as chair of the Economics Department from 1995 to 2002. He has twice been visiting professor at MIT and once at New York University, and has taught in undergraduate, M.B.A., M.P.A., and Ph.D. programs. He has authored more than 60 publications in macroeconomics, macroeconomic history, and finance.

Bernanke has served as a visiting scholar and advisor to the Federal Reserve System. He is a Guggenheim Fellow and a Fellow of the Econometric Society. He has also been variously honored as an Alfred P. Sloan Research Fellow, a Hoover Institution National Fellow, a National Science Foundation Graduate Fellow, and a Research Associate of the National Bureau of Economic Research. He has served as editor of the American Economic Review.

Dean Croushore, Robins School of Business, University of Richmond

Dean Croushore is professor of economics and Rigsby Fellow at the University of Richmond. He received his A.B. from Ohio University and his Ph.D. from Ohio State University.

Croushore began his career at Pennsylvania State University in 1984. After teaching for 5 years, he moved to the Federal Reserve Bank of Philadelphia, where he was vice president and economist. His duties during his 14 years at the Philadelphia Fed included heading the macroeconomics section, briefing the bank's president and board of directors on the state of the economy and advising them about formulating monetary policy, writing articles about the economy, administering two national surveys of forecasters, and researching current issues in monetary policy. In his role at the Fed, he created the Survey of Professional Forecasters (taking over the defunct ASA/NBER survey and revitalizing it) and developed the Real-Time Data Set for Macroeconomists.

Croushore returned to academia at the University of Richmond in 2003. The focus of his research in recent years has been on forecasting and how data revisions affect monetary policy, forecasting, and macroeconomic research. Croushore's publications include articles in many leading economics journals and a textbook on money and banking. He is associate editor of several journals and visiting scholar at the Federal Reserve Bank of Philadelphia.;

Ronald D. Kneebone, Department of Economics and the School of Public Policy, University of Calgary

Professor of Economics at the University of Calgary, Ron Kneebone received his B.A. in economics and political science before earning a Ph.D. in economics from McMaster University. Kneebone began his academic career at Wilfrid Laurier University. He joined the faculty at the University of Calgary in 1989. He has taught courses in economic principles and intermediate and senior undergraduate macroeconomic theory, as well as macroeconomic theory at the Ph.D. level. He has been recognized as a superior teacher in the Department of Economics eight times and has twice won the Faculty of Social Sciences Distinguished Teacher Award.

Kneebone is a former associate editor of Canadian Public Policy/Analyse de Politiques, Canada's foremost journal examining economic and social policy. He is currently the Scientific Director of Social Policy and Health Research in the School of Public Policy at the University of Calgary.

Kneebone's research interests lie mainly in the macroeconomic aspects of public finances. He has published articles on the problems for government budget financing associated with the three-level structure of Canadian government, on the history of government fiscal and monetary relations in Canada, and on the characteristics of Canadian government fiscal policy choices. More recently, he has published research on issues related to homelessness and social assistance policies. For joint work, he was awarded the Douglas Purvis Memorial Prize for the best published work in Canadian public policy in 1999/2000.

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