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

Principles of Macroeconomics Canadian Edition

Second Edition  ©2026 Kevin Milligan; Philip Oreopoulos; Betsey Stevenson; Justin Wolfers Formats: Achieve, E-book, Print

Authors

  • Headshot of Kevin Milligan

    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.

  • Headshot of Philip Oreopoulos

    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.

  • Headshot of Betsey Stevenson

    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.

  • Headshot of Justin Wolfers

    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.

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

Product Updates

  • Updates to GDP, Unemployment, Inflation, and Investment chapters including both up to date data and new examples and coverage
  • New and updated end of chapter questions, adaptive quiz content, and instructor presentation materials
  • New Decision Points, Math & Graphing Tutorials and Interactive Graphs

Authors

  • Headshot of Kevin Milligan

    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.

  • Headshot of Philip Oreopoulos

    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.

  • Headshot of Betsey Stevenson

    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.

  • Headshot of Justin Wolfers

    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.

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

Product Updates

  • Updates to GDP, Unemployment, Inflation, and Investment chapters including both up to date data and new examples and coverage
  • New and updated end of chapter questions, adaptive quiz content, and instructor presentation materials
  • New Decision Points, Math & Graphing Tutorials and Interactive Graphs

Every Decision is an Economic Decision

Written especially for Canadian students, Principles of Macroeconomics by Kevin Milligan, Phil Oreopoulos, Betsey Stevenson, and Justin Wolfers shows how every decision is an economic decision—even at the national and global level. From interest rates and inflation to unemployment and economic growth, the authors use compelling, relatable explanations and real-world Canadian examples to help students build the intuition they need to understand how the economy works and how policy decisions affect their lives. 

This fresh, engaging approach covers the full range of macroeconomic foundations—from GDP and fiscal policy to central banking and international trade—and is built on the most successful  new principles text in a generation.

Paired with Achieve, Principles of Macroeconomics becomes even more powerful. Achieve gives instructors the flexibility to shape their course while providing students with the tools they need to succeed. With thousands of assessments—including over 1,000 graphing questions—adaptive quizzes, assignable podcasts, decision point activities, and a fully integrated eBook, Achieve reinforces key concepts and keeps students engaged. Seamless LMS integration, iClicker support, our new AI Tutor and Respondus make it easy to manage everything in one place, so you can focus on what matters most: teaching useful economics that sticks.

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Kevin Milligan; Philip Oreopoulos; Betsey Stevenson; Justin Wolfers | Second Edition | ©2026 | ISBN:9781319585921

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