Cover: Principles of Macroeconomics Canadian Edition, 2nd Edition by Kevin Milligan; Philip Oreopoulos; Betsey Stevenson; Justin Wolfers

Principles of Macroeconomics Canadian Edition

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Second  Edition©2026  Kevin Milligan; Philip Oreopoulos; Betsey Stevenson; Justin Wolfers

ISBN:9781319583880

ISBN:9781319607517

About

Principles of Macroeconomics by Betsey Stevenson and Justin Wolfers helps you understand how the economy really works—from inflation and unemployment to interest rates and government policy. The authors connect big ideas to what’s happening in the world right now, so you can see how economics affects your life, your future, and the choices you make every day. It’s clear, relatable, and designed to help you succeed in this course and to make Economic Decisions long after you leave class.

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Table of Contents

Preface
A Quick Review of Graphs


PART I: Foundations of Economics
Chapter 1: The Four Core Principles of Economics
Chapter 2: Demand and Consumer Choice
Chapter 3: Supply and Producer Choice
Chapter 4: Equilibrium: Where Supply Meets Demand


PART II: Analyzing Markets
Chapter 5: Welfare Economics: Evaluating Market Efficiency and Market Failure
Chapter 6: Gains from Trade and Comparative Advantage
Chapter 7: International Trade
Chapter 8: Inequality, Poverty, and Social Insurance


PART III: Macroeconomic Foundations and the Long Run
Chapter 9: Sizing Up the Economy Using GDP
Chapter 10: Economic Growth
Chapter 11: Unemployment
Chapter 12: Inflation and Money


PART IV: Micro Foundations of Macroeconomics
Chapter 13: Consumption and Saving
Chapter 14: Investment
Chapter 15: The Financial Sector: Banks, Bonds, and Stocks
Chapter 16: International Finance and the Exchange Rate


PART V: The Business Cycle
Chapter 17: Tracking the Business Cycle
Chapter 18: IS-MP Analysis: Interest Rates and Output
Chapter 19: The Phillips Curve and Inflation
Chapter 20: The Full Model: Linking Interest Rates, Output, and Inflation
Chapter 21: Aggregate Demand and Aggregate Supply


PART VI: Macroeconomic Policy
Chapter 22: Monetary Policy
Chapter 23: Government Spending, Taxes, and Fiscal Policy


APPENDIX: A Closer Look at Aggregate Expenditure and the Multiplier

Kevin Milligan

Kevin Milligan is Professor of Economics in the Vancouver School of Economics at the University of British Columbia. He is affiliated with the C.D. Howe Institute and the National Bureau of Economic Research. In 2020-21 Kevin worked at the Privy Council Office as an advisor to the federal cabinet on pandemic economic policy and recovery. He has served as Co-Editor of the Canadian Tax Journal since 2011. Kevin studied at Queen’s University and the University of Toronto, receiving his Ph.D. in 2001. His thesis was awarded the 2002 National Tax Association dissertation award. Milligan’s published research in over 100 articles spans the fields of public and labour economics, with a focus on the economics of children and the elderly, as well as other tax and labour market policy topics.

Philip Oreopoulos

Philip Oreopoulos is Professor of Economics and Public Policy at the University of Toronto. He received his Ph.D. from the University of California at Berkeley and his M.A. from the University of British Columbia. He is co-chair of the Education Sector for the Jamal Poverty Action Lab, a Research Associate of the National Bureau of Economic Research, and Research Fellow at the Canadian Institute for Advanced Research. He has held previous visiting appointments at Harvard and the Massachusetts Institute of Technology and is editor at the Journal of Labour Economics. Oreopoulos’ current work focuses on education policy, especially the application of behavioural economics to education and child development. He often initiates and implements large-scale field experiments, with the goal of producing convincing evidence for public policy decisions.

Betsey Stevenson

Betsey Stevenson is a professor of economics and public policy at the University of Michigan. Her research focuses on the impact of public policies on the labor market, and explores women’s labor market experiences, the economic forces shaping the modern family, and the role of subjective well-being data for public policy. She serves on the Executive Committee of the American Economic Association, and is also a research associate with the National Bureau of Economic Research, a fellow of the Institute for Economic Research in Munich, a visiting associate professor of economics at the University of Sydney, and a research Fellow with the Centre for Economic Policy Research in London. She served as a member of the Council of Economic Advisers from 2013 to 2015, where she advised President Obama on social policy, labor market, and trade issues. She also served as the chief economist of the U.S. Department of Labor from 2010 to 2011. Betsey is an occasional editorialist for Bloomberg, and a trusted presence in the public debate about economics and public policy. She earned a BA in economics and mathematics from Wellesley College and an AM and PhD in economics from Harvard University.

Justin Wolfers

Justin Wolfers is a professor of economics and public policy at the University of Michigan. He does research in both macroeconomics and applied microeconomics topics, and has explored unemployment and inflation, the power of prediction markets, the economic forces shaping the modern family, discrimination, and happiness. He is a research associate with the National Bureau for Economic Research, a fellow of the Brookings Institution, a fellow of the Peterson Institute for International Economics, a research fellow with the Centre for Economic Policy Research in London, a fellow of the Institute for Economic Research in Munich, a visiting professor of economics at the University of Sydney, and an international research fellow at the Kiel Institute for the World Economy in Germany. He has been an editor of the Brookings Papers on Economic Activity, a board member on the Committee on the Status of Women in Economics, a member of the Panel of Advisors of the U.S. Congressional Budget Office, among many other board and advisory positions. He is currently a contributing columnist for the New York Times, and has written about economic issues in numerous other outlets. He is frequently quoted in the media on economic policy and relied upon to provide unbiased assessments of the current state of the macroeconomy. Justin earned a BA in economics from the University of Sydney and an AM and PhD in economics from Harvard University.