INSTRUCTOR’S MANUAL
Andrew Wong
University of Alberta
Macroeconomics
Sixth Canadian Edition
Andrew B. Abel
University of Pennsylvania
Ben S. Bernanke
Contents
Chapter 1: Introduction to Macroeconomics……………………………………………………..1
Learning Objectives……………………………………………………………….1
Teaching Notes ……………………………………………………………………..1
Chapter 2: The Measurement and Structure of the Canadian Economy…………….11
Learning Objectives……………………………………………………………..11
Teaching Notes ……………………………………………………………………11
Chapter 3: Productivity, Output, and Employment ………………………………………..28
Learning Objectives……………………………………………………………..28
Teaching Notes ……………………………………………………………………28
Chapter 4: Consumption, Saving, and Investment………………………………………….52
Learning Objectives……………………………………………………………..52
Teaching Notes ……………………………………………………………………52
Chapter 5: Saving and Investment in the Open Economy ……………………………….75
Learning Objectives……………………………………………………………..75
Teaching Notes ……………………………………………………………………75
Chapter 6: Long-Run Economic Growth………………………………………………………94
Learning Objectives……………………………………………………………..94
Teaching Notes ……………………………………………………………………94
Chapter 7: The Asset Market, Money, and Prices ………………………………………..113
Learning Objectives……………………………………………………………113
Teaching Notes ………………………………………………………………….113
Chapter 8: Business Cycles……………………………………………………………………….128
Learning Objectives……………………………………………………………128
Teaching Notes ………………………………………………………………….128
Chapter 9: The IS-LM/AD-AS Model: A General Framework for
Macroeconomic Analysis………………………………………………………….140
Learning Objectives……………………………………………………………140
Teaching Notes ………………………………………………………………….140
Chapter 10: Exchange Rates, Business Cycles, and Macroeconomic Policy in
the Open Economy …………………………………………………………………166
Learning Objectives……………………………………………………………166
Teaching Notes ………………………………………………………………….166
Chapter 11: Classical Business Cycle Analysis: Market-Clearing
Macroeconomics…………………………………………………………………….195
Learning Objectives……………………………………………………………195
Chapter 12: Keynesian Business Cycle Analysis: Non-Market-Clearing
Macroeconomics…………………………………………………………………….219
Learning Objectives……………………………………………………………219
Teaching Notes ………………………………………………………………….219
Chapter 13: Unemployment and Inflation …………………………………………………..250
Learning Objectives……………………………………………………………250
Teaching Notes ………………………………………………………………….250
Additional Issues for Classroom Discussion ………………………….262
Chapter 14: Monetary Policy and the Bank of Canada………………………………….269
Learning Objectives……………………………………………………………269
Teaching Notes ………………………………………………………………….269
Chapter 15: Government Spending and Its Financing…………………………………..288
Learning Objectives……………………………………………………………288
Teaching Notes ………………………………………………………………….288