Macroeconomics

NEW CHAPTER. “Internet Oligopoly: Networks and Platforms,” provides an intuitive presentation of the Nobel Prize–winning economic theories that explain why Internet industries are highly concentrated due to network effects, but at the same time often deliver their main products for free, as though the firms in those industries had no pricing power at all.

Econ NewsFlash Activities. NewsFlash exercises tie current news stories to key principles and learning objectives. After interacting with a contemporary news story, students are assessed on their ability to make the connection between real life and research findings.

NEW! Graphing Homework Tool optimized with accessibility in mind. Now more students can practice and demonstrate their understanding without struggling with clunky, inaccessible technology.

Consolidated Coverage. Previous two chapters on perfect competition consolidated into a single chapter for this new 17^th Canadian Edition in response to extensive faculty feedback that there is too much material to cover in the principles course.

Incorporating the Pandemic. For the current generation of traditional-aged post-secondary students, the COVID-19 pandemic has been the most extreme and long-lasting economic event of their lives.

Fundamentals of the Market System Many economies throughout the world are making difficult transitions from planning systems to market systems. Our detailed description of the institutions and operation of the market system in Chapter 2 (The Market System and the Circular Flow) is even more relevant than before. We pay particular attention to property rights, entrepreneurship, freedom of enterprise and choice, competition, and the role of profits, because these concepts are often misunderstood by beginning students.

Early and Extensive Treatment of Government The public sector is an integral component of modern capitalism. This book introduces the role of government early. Chapter 4 (Market Failures Caused by Externalities and Asymmetric Information) systematically discusses public goods and government policies toward externalities. Chapter 5 (Public Goods, Public Choice, and Government Failure) details the factors that cause government failure.

Step-by-Step, Two-Path Macro As in the previous edition, our text continues to be distinguished by a systematic step-by-step approach in developing ideas and building models. Explicit assumptions about price and wage stickiness are posited and then systematically peeled away, yielding new models and extensions, all in the broader context of growth, expectations, shocks, and degrees of price and wage stickiness over time.

In crafting this step-by-step macro approach, we took care to preserve the two-path macro that many instructors appreciated. Instructors who so choose can bypass the immediate short-run model (Chapter 11) and proceed without loss of continuity directly to the short-run AD–AS model (Chapter 12), fiscal policy, money and banking, monetary policy, and the long-run AD–AS analysis.

Extensive Treatment of International Economics We give the principles and institutions of the global economy extensive treatment. Chapter 19 (International Trade) examines specialization and comparative advantage, arguments for protectionism, impacts of tariffs and subsidies, and various trade agreements. Global Perspective boxes add to the international flavour of the book.

Connect. Connect is McGraw Hill's award-winning digital teaching and learning solution designed to enhance your teaching style. It allows you to deliver, personalize and measure your course with ease. Plus, Connect can integrate with your LMS system to provide a seamless experience for you and your students. Within Connect, students have access to SmartBook, an adaptive learning and reading tool that personalizes content to each student's unique needs. Because SmartBook creates the ideal study path for each student, every minute they spend studying is the most effective minute possible.