《ECONOMIC ANALYSIS AND CANADIAN POLICY FOURTH EDITION》

Part One Economics and The Market Place1

1 Economics: The Analysis of Alternatives3

AEconomic Problems: Individual and Social Choices3

B Economic Analysis: Towards Rational Decisions14

2 Demand, Supply, and Market Prices29

Demand for Consumer Goods and Services29

Elasticity: Sensitivity to Price Changes35

Total Market Demand42

Supply of Consumer goods and Services43

Price Determined by Supply and Demand47

Interdependence of Markets and General Equilibrium50

3 Market Failure and Public Policies55

Why Markets Fail55

Government in the Market Economy59

Using the Price Mechanism for Public Policies61

Part TwoThe Canadian Economy73

4 Measuring Canada’s Economic Performance75

Canada’s Economic Goals75

AInflation and Price Stability76

B How Much Unemployment Represents Full Employment?80

C Economic Growth and the National Accounts84

D The Balance of International Payments98

E Income Distribution in Canada101

5 Aggregate Demand and the Level of National Income111

National Income Determination in Classical Economics111

Keynesian Model of National Income Determination113

Toward Equilibrium National Income124

The Multiplier Effect133

The Acceleration Principle and the Multiplier137

Equilibrium National Income at Full Employment140

The Inflation and Unemployment Dilemma142

6 Money and the Level of National Income147

Money in Classical Economics147

The Demand for Money149

Determination of the Rate of Interest152

Money, Interest Rate, and Aggregate Demand153

General Equilibrium in the Real and Monetary Sectors156

7 Money and Banking in Canada161

What Is Money?161

The Canadian Banking System167

Expansion and Contraction of Chartered Bank Deposits173

Techniques for Regulating the Money Supply177

Money Supply and the Foreign Exchange184

8 Fiscal and Monetary Policies for Economic Stability189

AProblems for Stabilization Policies189

B Fiscal Policy197

C Monetary Policy216

D Monetary, Fiscal, or Other Policies?226

9 International Trade and Finance241

AInternational Trade241

B Financing International Trade and Capital Flows263

10 Economics of the Public Sector285

AGovernment Expenditures285

B Taxation298

Part ThreeConsumers and Producers313

11 Consumer Demand315

Marginal Utility and Consumer Decisions315

Indifference Curves and Consumer Decisions321

Consumer Expenditure Patterns331

12 Production Costs and Competitive Supply335

AProduction Costs335

B Supply Determination in Competitive Markets347

13 Imperfect Competition: Private Power in the Market Place369

APure Monopoly369

B Monopolistic Competition382

C Oligopoly385

D Evaluation of Alternative Market Structures394

14 Industrial Organization and Public Policy411

AIndustrial Organization in Canada411

B Public Policy for Industrial Organization421

Part FourDistribution of Incomes457

15 Pricing Factor Services: Rent, Interest, and Profit459

ADemand For Productive Factors459

B Rent and Land468

C Interest and Capital472

D Profit and the Entrepreneur477

16 Labour Markets and Labour Unions483

AWage Determination in Labour Markets483

B Labour Unions and Collective Bargaining in Canada498

17 Poverty and Regional Income Disparity515

APoverty519

B Regional Income Disparity532

Index545