NETA ASSESSMENT
Test Bank
to accompany
TestnoBanknoprepared
nobyn o ConstantinnoCol
onescun o MacEwannoU
niversity
,NETAnoAssessment:noTestnoBanknotonoaccompanynoPrinciplesnoofnoMacroeconomi
cs,
SixthnoCanadiannoEdition
BynoN.noGregorynoMankiwno/noRonaldnoD.noKneeboneno/noKennethnoJ.noMcKenzie
TestnoBanknopreparednobynoConstantinnoColonescu,noMacEwannoUniversity
NETAnocopynoeditor:noFrancesnoRobinson
AvailablenoonnoInstructor’snoResourcenoCDnoISBNno.no0-17-655440-8
COPYRIGHTno©2014nobynoNelsonnoEducationnoLtd.noNelsonnoisnoanoregisterednotrademarknousednohereinnound
ernolicence.noAlln o rightsnoreserved.
FornomorenoinformationnocontactnoNelson,no1120noBirchmountnoRoad,noToronto,noOntarion o M1Kno5G4.noOrn
oyounocannovisitnoourn o Internetnositenoatnowww.nelson.com.
ALLnoRIGHTSnoRESERVED.noNonopartnoofnothisnoworknocoverednobynothenocopyrightnohereonnomaynobenorepro
ducednoornousednoinn o anynoformnoornobynoanynomeans—
graphic,noelectronic,noornomechanical,noincludingnophotocopying,norecording,notaping,nowebn o distributionnoo
rnoinformationnostoragenoandnoretrievalnosystems—withoutnothenowrittennopermissionnoofnothenopublisher
ii
, TABLEnoOFnoCONTENTS
Partno1noIntroduction
Chapterno1noTennoPrinciplesnoofnoEconomics 1-1
Chapterno2noThinkingnoLikenoannoEconomist 2-1
Chapterno3noInterdependencenoandnothenoGainsnofromnoTrade 3-1
Partno2noSupplynoAndnoDemand:noHownoMarketsnoWork
Chapterno4noThenoMarketnoForcesnoofnoSupplynoandnoDemand 4-1
Partno3noThenoDatanoofnoMacroeconomics
Chapterno5noMeasuringnoanoNation’snoIncome 5-1
Chapterno6noMeasuringnothenoCostnoofnoLiving 6-1
Partno4noThenoRealnoEconomynoinnothenoLongnoRun
Chapterno7noProductionnoandnoGrowth 7-1
Chapterno8noSaving,noInvestment,noandnothenoFinancialnoSystem 8-1
Chapterno9noUnemploymentnoandnoItsnoNaturalnoRate 9-1
Partno5noMoneynoAndnoPricesnoinnothenoLongnoRun
Chapterno10noThenoMonetarynoSystem 10-1
Chapterno11noMoneynoGrowthnoandnoInflation 11-1
Partno6noThenoMacroeconomicsnoofnoOpennoEconomies
Chapterno12noOpen-EconomynoMacroeconomics:noBasicnoConcepts 12-1
Chapterno13noAnoMacroeconomicnoTheorynoofnothenoSmallnoOpennoEconomy 13-1
Partno7noShort-RunnoEconomicnoFluctuations
Chapterno14noAggregatenoDemandnoandnoAggregatenoSupply 14-1
Chapterno15noThenoInfluencenoofnoMonetarynoandnoFiscalnoPolicynoonnoAggregatenoDemand
15-1
Chapterno16noThenoShort-RunnoTradeoffnobetweennoInflationnoandnoUnemployment 16-1
Partno8noFinalnoThoughts
Chapterno17noFivenoDebatesnoovernoMacroeconomicnoPolicy 17-1
iii
, PREFACE
Innomostnopost-
secondarynocourses,noanolargenopercentagenoofnostudentnoassessmentnoisnobasednoonnomultiple
-n o choicenotesting.noManynoinstructorsnousenomultiple-
choicenoreluctantly,nobelievingnothatnoitnoisnoan o methodologynobestnousednofornotestingnowhat
noanostudentnoremembersnorathernothannowhatnoshenoornohenohasn o learned.
NelsonnoEducationnoLtd.nounderstandsnothatnoanogoodnoqualitynomultiple-
choicenotestnobanknocannoproviden o thenomeansnotonomeasurenohigher-
levelnothinkingnoskillsnoasnowellnoasnorecall.noRecognizingnothen o importancenoofnomultiple-
choicenotestingnoinnotoday’snoclassroom,nowenohavenocreatednoNETA—
then o NelsonnoEducationnoTeachingnoAdvantagenoprogram—
tonoensurenothenovaluenoofnoournohighnoqualitynotestn o banks.
ThenoNETAnoprogramnowasnocreatednoinnopartnershipnowithnoDavidnoDiBattista,noano3MnoNatio
nalnoTeachingn o Fellow,noprofessornoofnopsychologynoatnoBrocknoUniversity,noandnoresearchern
oinnothenoareanoofnomultiple-n o choicenotesting.noNETAnoensuresnothatnosubject-
matternoexpertsnowhonoauthornotestnobanksnohavenohadn o trainingnoinnotwonoareas:noavoiding
nocommonnoerrorsnoinnotestnoconstruction,noandnodevelopingnomultiple-
n o choicenotestnoquestionsnothatno“getnobeyondnoremembering”notonoassessnohigher-
levelnothinking.
AllnoNETAnotestnobanksnoincludenoDavidnoDiBattista’snoguidenofornoinstructors,no“MultiplenoCh
oicenoTests:n o GettingnoBeyondnoRemembering.”noThisnoguidenohasnobeennodesignednotonoas
sistnoyounoinnousingnoNelsonn o testnobanksnotonoachievenoyournodesirednooutcomesnoinnoyour
nocourse.
ThenoTestnoBanknofornoPrinciplesnoofnoMacroeconomics,noSixthnoCanadiannoEditionnohasnobee
nnorevisednoforn o CanadiannostudentsnobynoConstantinnoColonescu,noMacEwannoUniversity.no
Thenomultiple-
choicen o questionsnowerenowrittennoandnoeditednotonoconformnotonoNETAnoguidelines,nowhic
hnoemphasizenothen o developmentnoofnohigher-
ordernothinkingnoandnothenoeffectivenoconstructionnoofnoquestions.noNETAn o principlesnoofnoq
uestionnoconstructionnohelpnoeliminatenoambiguity,noarguablenoanswers,noguesswork,n o and
nounconsciousnocuesnotonotest-
savvynostudents,noresultingnoinnoanotestnothatnoaccuratelynoreflectsnostudentn o understanding.
noThenoTestnoBanknooffersnooverno3510noquestions,noincludingnoaboutno2822nomultiplen o choi
ce,noaboutno362notrue/false,noaboutno162noproblems,noandnoaboutno164noshortnoanswernoque
stions.
4
Test Bank
to accompany
TestnoBanknoprepared
nobyn o ConstantinnoCol
onescun o MacEwannoU
niversity
,NETAnoAssessment:noTestnoBanknotonoaccompanynoPrinciplesnoofnoMacroeconomi
cs,
SixthnoCanadiannoEdition
BynoN.noGregorynoMankiwno/noRonaldnoD.noKneeboneno/noKennethnoJ.noMcKenzie
TestnoBanknopreparednobynoConstantinnoColonescu,noMacEwannoUniversity
NETAnocopynoeditor:noFrancesnoRobinson
AvailablenoonnoInstructor’snoResourcenoCDnoISBNno.no0-17-655440-8
COPYRIGHTno©2014nobynoNelsonnoEducationnoLtd.noNelsonnoisnoanoregisterednotrademarknousednohereinnound
ernolicence.noAlln o rightsnoreserved.
FornomorenoinformationnocontactnoNelson,no1120noBirchmountnoRoad,noToronto,noOntarion o M1Kno5G4.noOrn
oyounocannovisitnoourn o Internetnositenoatnowww.nelson.com.
ALLnoRIGHTSnoRESERVED.noNonopartnoofnothisnoworknocoverednobynothenocopyrightnohereonnomaynobenorepro
ducednoornousednoinn o anynoformnoornobynoanynomeans—
graphic,noelectronic,noornomechanical,noincludingnophotocopying,norecording,notaping,nowebn o distributionnoo
rnoinformationnostoragenoandnoretrievalnosystems—withoutnothenowrittennopermissionnoofnothenopublisher
ii
, TABLEnoOFnoCONTENTS
Partno1noIntroduction
Chapterno1noTennoPrinciplesnoofnoEconomics 1-1
Chapterno2noThinkingnoLikenoannoEconomist 2-1
Chapterno3noInterdependencenoandnothenoGainsnofromnoTrade 3-1
Partno2noSupplynoAndnoDemand:noHownoMarketsnoWork
Chapterno4noThenoMarketnoForcesnoofnoSupplynoandnoDemand 4-1
Partno3noThenoDatanoofnoMacroeconomics
Chapterno5noMeasuringnoanoNation’snoIncome 5-1
Chapterno6noMeasuringnothenoCostnoofnoLiving 6-1
Partno4noThenoRealnoEconomynoinnothenoLongnoRun
Chapterno7noProductionnoandnoGrowth 7-1
Chapterno8noSaving,noInvestment,noandnothenoFinancialnoSystem 8-1
Chapterno9noUnemploymentnoandnoItsnoNaturalnoRate 9-1
Partno5noMoneynoAndnoPricesnoinnothenoLongnoRun
Chapterno10noThenoMonetarynoSystem 10-1
Chapterno11noMoneynoGrowthnoandnoInflation 11-1
Partno6noThenoMacroeconomicsnoofnoOpennoEconomies
Chapterno12noOpen-EconomynoMacroeconomics:noBasicnoConcepts 12-1
Chapterno13noAnoMacroeconomicnoTheorynoofnothenoSmallnoOpennoEconomy 13-1
Partno7noShort-RunnoEconomicnoFluctuations
Chapterno14noAggregatenoDemandnoandnoAggregatenoSupply 14-1
Chapterno15noThenoInfluencenoofnoMonetarynoandnoFiscalnoPolicynoonnoAggregatenoDemand
15-1
Chapterno16noThenoShort-RunnoTradeoffnobetweennoInflationnoandnoUnemployment 16-1
Partno8noFinalnoThoughts
Chapterno17noFivenoDebatesnoovernoMacroeconomicnoPolicy 17-1
iii
, PREFACE
Innomostnopost-
secondarynocourses,noanolargenopercentagenoofnostudentnoassessmentnoisnobasednoonnomultiple
-n o choicenotesting.noManynoinstructorsnousenomultiple-
choicenoreluctantly,nobelievingnothatnoitnoisnoan o methodologynobestnousednofornotestingnowhat
noanostudentnoremembersnorathernothannowhatnoshenoornohenohasn o learned.
NelsonnoEducationnoLtd.nounderstandsnothatnoanogoodnoqualitynomultiple-
choicenotestnobanknocannoproviden o thenomeansnotonomeasurenohigher-
levelnothinkingnoskillsnoasnowellnoasnorecall.noRecognizingnothen o importancenoofnomultiple-
choicenotestingnoinnotoday’snoclassroom,nowenohavenocreatednoNETA—
then o NelsonnoEducationnoTeachingnoAdvantagenoprogram—
tonoensurenothenovaluenoofnoournohighnoqualitynotestn o banks.
ThenoNETAnoprogramnowasnocreatednoinnopartnershipnowithnoDavidnoDiBattista,noano3MnoNatio
nalnoTeachingn o Fellow,noprofessornoofnopsychologynoatnoBrocknoUniversity,noandnoresearchern
oinnothenoareanoofnomultiple-n o choicenotesting.noNETAnoensuresnothatnosubject-
matternoexpertsnowhonoauthornotestnobanksnohavenohadn o trainingnoinnotwonoareas:noavoiding
nocommonnoerrorsnoinnotestnoconstruction,noandnodevelopingnomultiple-
n o choicenotestnoquestionsnothatno“getnobeyondnoremembering”notonoassessnohigher-
levelnothinking.
AllnoNETAnotestnobanksnoincludenoDavidnoDiBattista’snoguidenofornoinstructors,no“MultiplenoCh
oicenoTests:n o GettingnoBeyondnoRemembering.”noThisnoguidenohasnobeennodesignednotonoas
sistnoyounoinnousingnoNelsonn o testnobanksnotonoachievenoyournodesirednooutcomesnoinnoyour
nocourse.
ThenoTestnoBanknofornoPrinciplesnoofnoMacroeconomics,noSixthnoCanadiannoEditionnohasnobee
nnorevisednoforn o CanadiannostudentsnobynoConstantinnoColonescu,noMacEwannoUniversity.no
Thenomultiple-
choicen o questionsnowerenowrittennoandnoeditednotonoconformnotonoNETAnoguidelines,nowhic
hnoemphasizenothen o developmentnoofnohigher-
ordernothinkingnoandnothenoeffectivenoconstructionnoofnoquestions.noNETAn o principlesnoofnoq
uestionnoconstructionnohelpnoeliminatenoambiguity,noarguablenoanswers,noguesswork,n o and
nounconsciousnocuesnotonotest-
savvynostudents,noresultingnoinnoanotestnothatnoaccuratelynoreflectsnostudentn o understanding.
noThenoTestnoBanknooffersnooverno3510noquestions,noincludingnoaboutno2822nomultiplen o choi
ce,noaboutno362notrue/false,noaboutno162noproblems,noandnoaboutno164noshortnoanswernoque
stions.
4
