Macroeconomics, Canadian Edition, 10th edition
Published by Pearson Canada (February 4, 2025) © 2026
  • Andrew B. Abel
  • Ben S. Bernanke
  • Dean Croushore
  • Ronald D. Kneebone
  • Trevor Tombe

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.

This new Canadian edition took a particularly notable step forward by incorporating more modern perspectives to resonate with today’s students and instructors while continuing to ensure broad accessibility. By integrating the latest data, engaging with contemporary policy discussions, unpacking current debates, and, perhaps most importantly, adopting a broader perspective to illuminate the diverse experiences individuals have within the macroeconomy. This approach not only makes the study of economics more relevant and thought-provoking but may also help foster a deeper understanding of macroeconomics’ important complexities.

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.

New and updated content

  • Real-world applications. A perennial challenge for instructors is to help students make active use of the economic ideas developed in the text. The rich variety of applications in this book shows by example how economic concepts can be put to work in explaining real-world issues, such as increasing wage inequality, the productivity slowdown, sources of international financial crises, and alternative approaches to making monetary policy. The tenth Canadian edition has updated the best applications of previous editions
  • Broad modern coverage. From its conception, Macroeconomics has responded to students’ desires to investigate and understand a wider range of macroeconomic issues than permitted by the course’s traditional emphasis on short-run fluctuations and stabilization policy. This book provides a modern treatment of these traditional topics but also gives in-depth coverage of other important macro issues, such as the determinants of long-run economic growth, international trade and capital flows, labour markets, and the political and institutional framework of policymaking. In the latest edition, it also adds substantially more content to highlight the diverse experiences of individuals within the macroeconomy. This comprehensive coverage also makes the book a useful tool for instructors with differing views about course coverage and topic sequence.
  • Reliance on a set of core economic ideas. Although we cover a wide range of topics, we avoid developing a new model or theory for each issue. Instead, we emphasize the broad applicability of a set of core economic ideas (such as the production function, the trade-off be-tween consuming today and saving for tomorrow, and supply–demand analysis). Using these core ideas, we build a theoretical framework that encompasses all the macroeconomic analyses presented in the book: long-run and short-run, open economy and closed economy, and classical and Keynesian.

Key features

Important Digital Assets in MyLab Economics

  • Spotlight on Macroeconomics. These new current event boxes bring currency into your classroom with author-written content that connects key concepts with real-life current events. Annually, our authors add new or revised content, data, to ensure that your students have relevant examples to help them engage with the course.
  • Interactives Figures. Interactive Figures bring concepts to life, helping students see the concepts through directed explorations and purposeful manipulation. These figures are assignable and encourage active learning, critical thinking, and conceptual understanding. These interactive graphs and figures can be found by learners within the eTextbook, and can be assigned by instructors through our MyLab Multimedia Library. .
  • 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.
  • Dynamic Study Modules. Using a highly personalized, algorithmically driven process, Dynamic Study Modules continuously assess student performance and provide additional practice in the areas where they struggle the most. Each Dynamic Study Module, accessed by computer, smartphone or tablet, promotes fast learning and long-term retention.
  • Learning Catalytics. Learning Catalytics™ allows students to use any web-enabled device to participate in-class. Instructors can access a library of prebuilt questions or construct questions on their own to keep students engaged in the lecture. Learning Catalytics can be assigned to students synchronously or asynchronously and used for individual or group work. It can also place students in discussion groups based on their responses and location, regardless of class size.
  • 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.

Trevor Tombe Department of Economics and the School of Public Policy, University of Calgary

Trevor Tombe is a Professor of Economics at the University of Calgary and the Scientific Director of Fiscal and Economic Policy at the School of Public Policy. He is also the Co-Director of Finances of the Nation and serves on various editorial boards. He received his B.B.A. in finance and economics from Simon Fraser University before earning his M.A. and Ph.D. in economics from the University of Toronto.

Tombe started his academic career at Wilfrid Laurier University in 2012 before joining the University of Calgary in 2013. He teaches a wide variety of courses, including undergraduate principles of microeconomics, international trade, intermediate macroeconomics, and graduate courses in public finance, international trade, econometrics, and macroeconomics.

Tombe’s research focuses on international and internal trade, productivity and economic growth, Canadian public finance, and fiscal federalism. His articles have appeared in top academic journals, including the American Economic Review, Journal of Monetary Economics, American Economic Journal: Macroeconomics, Review of Economic Dynamics, Canadian Journal of Economics, among others. He has shared the Harry Johnson Prize for the best paper published in the Canadian Economics Journal and the Vanderkamp Prize for the best paper published in the journal Canadian Public Policy. In addition to his academic work, he actively advises various governments on a wide range of issues and is an active contributor to Canadian policy development and discussions through regular op-eds, articles, and active media engagement. In recognition of that work, he received the Queen Elizabeth II’s Platinum Jubilee Medal in 2023.

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