Chapter 1: The Subject Matter of Economics
Introduction to economic thinking, scarcity, resources, the scientific method in economics, and developing logical thinking.
Chapter 2: Scarcity and The Production Possibilities Curve
Scarcity and choice, production possibilities curves, opportunity cost, and fundamental economic questions.
Chapter 3: Economic Systems and the Canadian Economy
Traditional, market, and planned economic systems. Government intervention, income inequality, and characteristics of the Canadian economy.
Chapter 4: Schools of Thought in Economics
Evolution of economic ideas from Mercantilism and Physiocrats to Classical, Neoclassical, Keynesian, and Behavioral Economics.
Chapter 5: Demand and Supply
Market mechanisms, the law of demand and supply, equilibrium price determination, and elasticity concepts.
Chapter 6: Unemployment and Inflation
Types of unemployment, measurement, costs, classical and Keynesian theories, inflation definition, and effects.
Chapter 7: National Income and Product Accounts
GDP measurement using income and expenditure approaches, avoiding double counting, and related national accounting concepts.
Chapter 8: The Aggregate Demand (AD)–Aggregate Supply (AS) Model: Short-Run Analysis
Aggregate demand and supply curves, short-run equilibrium, demand-side and supply-side policies.
Chapter 9: The Aggregate Demand (AD)– Aggregate Supply (AS) Model: Long-Run Analysis and Economic Growth
Long-run aggregate supply, economic growth determinants, sustainability, and measures to promote growth.
Chapter 10: The Keynesian Aggregate Expenditure Model
Aggregate expenditure and output, consumption functions, investment-saving approach, and model limitations.
Chapter 11: Changes in Income and the Multiplier
Income effects of investment and saving changes, the multiplier effect, and inflationary and recessionary gaps.
Chapter 12: Government Spending, Taxes, and Fiscal Policy
Government spending effects, taxation, budget positions, automatic stabilizers, and discretionary fiscal policy in Canada.
Chapter 13: Economic Fluctuations
Business cycles, phases, theories of fluctuations, multiplier-accelerator theory, and forecasting business cycles.
Chapter 14: Money and its Functions
Functions of money, characteristics, kinds of money, Canadian payments system, and the value of money.
Chapter 15: The Banking System and the Money Supply
Canadian banking system, Bank of Canada functions, chartered banks, money creation, and deposit expansion.
Chapter 16: Monetary Theory and Monetary Policy
Quantity theory of money, Keynesian money theory, interest rate determination, and monetary policy tools and effectiveness.
Chapter 17: Inflation and Anti-Inflation Policies
Causes of inflation, Phillips curve, natural rate of unemployment, stagflation, and rational expectations hypothesis.
Chapter 18: The International Economy
Globalization, Canadian economy openness, international competitiveness, world trade, and Canada as a trading nation.
Chapter 19: The Balance of Payments and Exchange Rates
Balance of payments, exchange rates, purchasing power parity, fixed vs. flexible exchange rates, and Canadian dollar relationships.