INSTRUCTOR’S SOLUTIONS MANUAL
for
Economics Today:
A Canadian Perspective,
Macroeconomics
Second Edition
Roger LeRoy Miller
Complete Chapters Solutions Included ✅
Instant Download in PDF
, Contents
Chapter 1: The Nature of Economics 1-1
Chapter 2: Scarcity and the World of Trade-Offs 2-1
Chapter 3: Demand and Supply 3-1
Chapter 4: Extensions of Demand and Supply Analysis 4-1
Chapter 5: Market Failures and the Public Sector 5-1
Chapter 6: The Macroeconomy: GDP, Unemployment, and Inflation 6-1
Chapter 7: Measuring the Economy’s Performance 7-1
Chapter 8: Global Economic Growth and Development 8-1
Chapter 9: Real GDP and the Price Level in the Long Run 9-1
Chapter 10: Classical and Keynesian Macro Analyses 10-1
Chapter 11: Consumption, Real GDP, and the Multiplier 11-1
Chapter 12: Fiscal Policy 12-1
Chapter 13: Deficit Spending and the Public Debt 13-1
Chapter 14: Money, Banking, and Money Creation 14-1
Chapter 15: Bank of Canada and Monetary Policy 15-1
Chapter 16: Stabilization in an Integrated World Economy 16-1
Chapter 17: Policies and Prospects for Global Economic Growth 17-1
Chapter 18: Comparative Advantage and the Open Economy 18-1
Chapter 19: Exchange Rates and the Balance of Payments 19-1
ii
Copyright © 2026
,Chapter 1
The Nature of Economics
Answers to Questions for Critical Analysis
AI: DECISION MAKING THROUGH DATA
Why do you suppose that economists sometimes disagree about whether to classify as a
microeconomic or macroeconomic endeavour the application of big data analytics and AI to
massive volumes of information encompassing virtually all of a nation’s industries and
interactions among those industries?
Because big data analytics uses such massive volumes of information, which can encompass
virtually all a nation’s industries and interactions among those industries, it seems as if the
endeavour is a macroeconomic application (large scale). However, in many cases, this big data
just represents a small part of the economy, which could be perceived as a microeconomic
application (individual scale or sub-scale).
THE INCENTIVES TO ATTEND POST-SECONDARY EDUCATION
Sometimes adults tell young people to “get all the education you can get.” Does this mean that
you should necessarily obtain an advanced degree?
Under special circumstances, your answer to this Real Application question would be, yes. Those
special circumstances would involve being able to obtain an advanced degree at zero cost to you
and simultaneously not having any job opportunities as an alternative. Otherwise, you should
look at how much more you would expect to earn per year if you complete an advanced degree
program compared with what you could have earned working rather than spending more time in
a university. Plus, you would have to consider the out-of-pocket costs of pursuing an advanced
degree.
ASSESSING WHETHER CHARITABLE DONATIONS REFLECT CARING FOR OTHERS OR FOR
ONESELF
How might the fact that the Canadian government allows larger tax deductions for some
charitable donations than for others, how would this affect Canadian taxpayers’ incentives about
how much to donate and to whom they direct their donations?
Canadian taxpayers are likely to donate to charities that will both help others and which will
make them better off (either through a tax deduction or a charitable gift). If the government
allows larger tax deductions for some charitable donations over others, taxpayers are likely to
donate more to the charities where they receive a larger benefit (tax deduction).
GETTING DIRECTIONS
In what way do small talk and gossip represent the use of simplifying assumptions?
Gossip and small talk usually deal with other persons or situations of interest to the persons
engaged in the conversation. Often the people who are talking choose to leave out details which
they consider unimportant or information that do not support their position. The interpretation of
the situation or the behaviour of the person being talked about will be affected by which details
are omitted.
Copyright © 2026
1-1
, ISM for Miller et al. • Microeconomics, Second Edition
Economics in Your Life
GOVERNMENT PROVIDES INCENTIVE WITH THE ZERO-EMISSION VEHICLE INFRASTRUCTURE
PROGRAM (ZEVIP).
For Critical Thinking
Overall, does it appear that the incentive provided to purchase a ZEV arises from the application
of centralized command and control, the price system, or a mix of the two? Explain your
reasoning.
The government incentive provided to purchase a ZEV implies that our economy is mixed.
The government incentive or consumer subsidy will decrease the ZEV price and make the
purchase more attractive to consumers (command). The market will determine what kind and
how many ZEVs to produce (the price system).
Real Application
Assume that ZEVs remain perceptibly more expensive to purchase than other vehicles. Do you
think the existing incentives to purchase and operate a ZEV are sufficient to convince you to buy
a ZEV?
The importance of the incentives and their associated effect on purchase behaviour has been
changing over time. Respondents are more likely to change their decision and more likely not
to buy a vehicle at all as time passes and the technology moves away from early adopters.
Incentives are becoming more important for vehicle adopters as the ZEV market entry
progresses.
Issues & Applications
WHY EDUCATION AND FINANCIAL INDEPENDENCE HELPS TO EXPLAIN WHY WOMEN ARE
DELAYING MARRIAGE AND WHY FEWER WOMEN ARE MARRIED
For Critical Thinking
Why do you think that the prevalence of marriages by women to higher-income-earning partners
has remained relatively steady in recent years? (Hint: On average, higher-income-earning
partners have completed more years of education and have more stable employment prospects
than those who earn less.)
The argument states that women choose to marry out of self-interest and will marry a partner
that will be able to provide financially for the household. If women’s interests and actions do
not change, then the prevalence of marriages to higher-income-earning partners should
remain relatively steady.
Real Application
Currently, a larger percentage of women are obtaining advanced degrees than men are. What
are some of the real-world implications of this trend with respect to marriage?
Women with advanced degrees typically do not seek out spouses who have little or no
education past high school. One might predict that there will be a higher percentage of
marriages among men and women who have advanced degrees.
Copyright © 2026
1-2
for
Economics Today:
A Canadian Perspective,
Macroeconomics
Second Edition
Roger LeRoy Miller
Complete Chapters Solutions Included ✅
Instant Download in PDF
, Contents
Chapter 1: The Nature of Economics 1-1
Chapter 2: Scarcity and the World of Trade-Offs 2-1
Chapter 3: Demand and Supply 3-1
Chapter 4: Extensions of Demand and Supply Analysis 4-1
Chapter 5: Market Failures and the Public Sector 5-1
Chapter 6: The Macroeconomy: GDP, Unemployment, and Inflation 6-1
Chapter 7: Measuring the Economy’s Performance 7-1
Chapter 8: Global Economic Growth and Development 8-1
Chapter 9: Real GDP and the Price Level in the Long Run 9-1
Chapter 10: Classical and Keynesian Macro Analyses 10-1
Chapter 11: Consumption, Real GDP, and the Multiplier 11-1
Chapter 12: Fiscal Policy 12-1
Chapter 13: Deficit Spending and the Public Debt 13-1
Chapter 14: Money, Banking, and Money Creation 14-1
Chapter 15: Bank of Canada and Monetary Policy 15-1
Chapter 16: Stabilization in an Integrated World Economy 16-1
Chapter 17: Policies and Prospects for Global Economic Growth 17-1
Chapter 18: Comparative Advantage and the Open Economy 18-1
Chapter 19: Exchange Rates and the Balance of Payments 19-1
ii
Copyright © 2026
,Chapter 1
The Nature of Economics
Answers to Questions for Critical Analysis
AI: DECISION MAKING THROUGH DATA
Why do you suppose that economists sometimes disagree about whether to classify as a
microeconomic or macroeconomic endeavour the application of big data analytics and AI to
massive volumes of information encompassing virtually all of a nation’s industries and
interactions among those industries?
Because big data analytics uses such massive volumes of information, which can encompass
virtually all a nation’s industries and interactions among those industries, it seems as if the
endeavour is a macroeconomic application (large scale). However, in many cases, this big data
just represents a small part of the economy, which could be perceived as a microeconomic
application (individual scale or sub-scale).
THE INCENTIVES TO ATTEND POST-SECONDARY EDUCATION
Sometimes adults tell young people to “get all the education you can get.” Does this mean that
you should necessarily obtain an advanced degree?
Under special circumstances, your answer to this Real Application question would be, yes. Those
special circumstances would involve being able to obtain an advanced degree at zero cost to you
and simultaneously not having any job opportunities as an alternative. Otherwise, you should
look at how much more you would expect to earn per year if you complete an advanced degree
program compared with what you could have earned working rather than spending more time in
a university. Plus, you would have to consider the out-of-pocket costs of pursuing an advanced
degree.
ASSESSING WHETHER CHARITABLE DONATIONS REFLECT CARING FOR OTHERS OR FOR
ONESELF
How might the fact that the Canadian government allows larger tax deductions for some
charitable donations than for others, how would this affect Canadian taxpayers’ incentives about
how much to donate and to whom they direct their donations?
Canadian taxpayers are likely to donate to charities that will both help others and which will
make them better off (either through a tax deduction or a charitable gift). If the government
allows larger tax deductions for some charitable donations over others, taxpayers are likely to
donate more to the charities where they receive a larger benefit (tax deduction).
GETTING DIRECTIONS
In what way do small talk and gossip represent the use of simplifying assumptions?
Gossip and small talk usually deal with other persons or situations of interest to the persons
engaged in the conversation. Often the people who are talking choose to leave out details which
they consider unimportant or information that do not support their position. The interpretation of
the situation or the behaviour of the person being talked about will be affected by which details
are omitted.
Copyright © 2026
1-1
, ISM for Miller et al. • Microeconomics, Second Edition
Economics in Your Life
GOVERNMENT PROVIDES INCENTIVE WITH THE ZERO-EMISSION VEHICLE INFRASTRUCTURE
PROGRAM (ZEVIP).
For Critical Thinking
Overall, does it appear that the incentive provided to purchase a ZEV arises from the application
of centralized command and control, the price system, or a mix of the two? Explain your
reasoning.
The government incentive provided to purchase a ZEV implies that our economy is mixed.
The government incentive or consumer subsidy will decrease the ZEV price and make the
purchase more attractive to consumers (command). The market will determine what kind and
how many ZEVs to produce (the price system).
Real Application
Assume that ZEVs remain perceptibly more expensive to purchase than other vehicles. Do you
think the existing incentives to purchase and operate a ZEV are sufficient to convince you to buy
a ZEV?
The importance of the incentives and their associated effect on purchase behaviour has been
changing over time. Respondents are more likely to change their decision and more likely not
to buy a vehicle at all as time passes and the technology moves away from early adopters.
Incentives are becoming more important for vehicle adopters as the ZEV market entry
progresses.
Issues & Applications
WHY EDUCATION AND FINANCIAL INDEPENDENCE HELPS TO EXPLAIN WHY WOMEN ARE
DELAYING MARRIAGE AND WHY FEWER WOMEN ARE MARRIED
For Critical Thinking
Why do you think that the prevalence of marriages by women to higher-income-earning partners
has remained relatively steady in recent years? (Hint: On average, higher-income-earning
partners have completed more years of education and have more stable employment prospects
than those who earn less.)
The argument states that women choose to marry out of self-interest and will marry a partner
that will be able to provide financially for the household. If women’s interests and actions do
not change, then the prevalence of marriages to higher-income-earning partners should
remain relatively steady.
Real Application
Currently, a larger percentage of women are obtaining advanced degrees than men are. What
are some of the real-world implications of this trend with respect to marriage?
Women with advanced degrees typically do not seek out spouses who have little or no
education past high school. One might predict that there will be a higher percentage of
marriages among men and women who have advanced degrees.
Copyright © 2026
1-2
