NETA ASSESSMENT Test Bank to accompany Test Bank prepared by Constantin Colonescu MacEwan University NETA Assessment: Test Bank to accompany Principles of Macroeconomics,

NETA ASSESSMENT
Test Bank
to accompany




Test Bank prepared by
Constantin Colonescu
MacEwan University

,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth trCanadian trEdition

By trN. trGregory trMankiw tr/ trRonald trD. trKneebone tr/ trKenneth trJ. trMcKenzie



Test trBank trprepared trby trConstantin trColonescu, trMacEwan trUniversity



NETA trcopy treditor: trFrances trRobinson


Available tron trInstructor’s trResource trCD trISBN tr. tr0-17-655440-8

COPYRIGHT tr©2014 trby trNelson trEducation trLtd. trNelson tris tra trregistered trtrademark trused trherein trunder
trlicence. trAll t r rights trreserved.



For trmore trinformation trcontact trNelson, tr1120 trBirchmount trRoad, trToronto, trOntario tr M1K tr5G4. trOr tryou trcan
trvisit trour t r Internet trsite trat trwww.nelson.com.



ALL trRIGHTS trRESERVED. trNo trpart trof trthis trwork trcovered trby trthe trcopyright trhereon trmay trbe trreproduced tror
trused trin t r any trform tror trby trany trmeans—graphic, trelectronic, tror trmechanical, trincluding trphotocopying,

trrecording, trtaping, trweb t r distribution tror trinformation trstorage trand trretrieval trsystems—without trthe

trwritten trpermission trof trthe trpublisher




ii

, TABLE trOF trCONTENTS

Part tr1 trIntroduction
Chapter tr1 trTen trPrinciples trof trEconomics 1-1
Chapter tr2 trThinking trLike tran trEconomist 2-1
Chapter tr3 trInterdependence trand trthe trGains trfrom trTrade 3-1

Part tr2 trSupply trAnd trDemand: trHow trMarkets trWork
Chapter tr4 trThe trMarket trForces trof trSupply trand trDemand 4-1

Part tr3 trThe trData trof trMacroeconomics
Chapter tr5 trMeasuring tra trNation’s trIncome 5-1
Chapter tr6 trMeasuring trthe trCost trof trLiving 6-1

Part tr4 trThe trReal trEconomy trin trthe trLong trRun
Chapter tr7 trProduction trand trGrowth 7-1
Chapter tr8 trSaving, trInvestment, trand trthe trFinancial trSystem 8-1
Chapter tr9 trUnemployment trand trIts trNatural trRate 9-1

Part tr5 trMoney trAnd trPrices trin trthe trLong trRun
Chapter tr10 trThe trMonetary trSystem 10-1
Chapter tr11 trMoney trGrowth trand trInflation 11-1

Part tr6 trThe trMacroeconomics trof trOpen trEconomies
Chapter tr12 trOpen-Economy trMacroeconomics: trBasic trConcepts 12-1
Chapter tr13 trA trMacroeconomic trTheory trof trthe trSmall trOpen trEconomy 13-1

Part tr7 trShort-Run trEconomic trFluctuations
Chapter tr14 trAggregate trDemand trand trAggregate trSupply 14-1
Chapter tr15 trThe trInfluence trof trMonetary trand trFiscal trPolicy tron trAggregate trDemand 15-1
Chapter tr16 trThe trShort-Run trTradeoff trbetween trInflation trand trUnemployment 16-1

Part tr8 trFinal trThoughts
Chapter tr17 trFive trDebates trover trMacroeconomic trPolicy 17-1




iii

, PREFACE




In trmost trpost-secondary trcourses, tra trlarge trpercentage trof trstudent trassessment tris trbased tron
trmultiple- t r choice trtesting. trMany trinstructors truse trmultiple-choice trreluctantly, trbelieving

trthat trit tris tra t r methodology trbest trused trfor trtesting trwhat tra trstudent trremembers trrather

trthan trwhat trshe tror trhe trhas t r learned.



Nelson trEducation trLtd. trunderstands trthat tra trgood trquality trmultiple-choice trtest trbank trcan
trprovide t r the trmeans trto trmeasure trhigher-level trthinking trskills tras trwell tras trrecall.

trRecognizing trthe t r importance trof trmultiple-choice trtesting trin trtoday’s trclassroom, trwe trhave

trcreated trNETA—the t r Nelson trEducation trTeaching trAdvantage trprogram—to trensure trthe

trvalue trof trour trhigh trquality trtest t r banks.



The trNETA trprogram trwas trcreated trin trpartnership trwith trDavid trDiBattista, tra tr3M trNational
trTeaching t r Fellow, trprofessor trof trpsychology trat tr Brock trUniversity, trand trresearcher trin trthe

trarea trof trmultiple- t r choice trtesting. trNETA trensures trthat trsubject-matter trexperts trwho

trauthor trtest trbanks trhave trhad t r training trin trtwo trareas: travoiding trcommon trerrors trin trtest

trconstruction, trand trdeveloping trmultiple- t r choice trtest trquestions trthat tr“get trbeyond

trremembering” trto trassess trhigher-level trthinking.



All trNETA trtest trbanks trinclude trDavid trDiBattista’s trguide trfor trinstructors, tr“Multiple trChoice
trTests: t r Getting trBeyond trRemembering.” trThis trguide trhas trbeen trdesigned trto trassist tryou

trin trusing trNelson t r test trbanks trto trachieve tryour trdesired troutcomes trin tr your trcourse.



The trTest trBank trfor trPrinciples trof trMacroeconomics, trSixth trCanadian trEdition trhas trbeen
trrevised trfor t r Canadian trstudents trby trConstantin trColonescu, trMacEwan trUniversity. trThe

trmultiple-choice t r questions trwere trwritten trand tredited trto trconform trto trNETA trguidelines,

trwhich tremphasize trthe t r development trof trhigher-order trthinking trand trthe treffective

trconstruction trof trquestions. trNETA t r principles trof trquestion trconstruction trhelp treliminate

trambiguity, trarguable transwers, trguesswork, t r and trunconscious trcues trto trtest-savvy

trstudents, trresulting trin tra trtest trthat traccurately trreflects trstudent t r understanding. trThe trTest

trBank troffers trover tr3510 trquestions, trincluding trabout tr2822 trmultiple t r choice, trabout tr362

trtrue/false, trabout tr162 trproblems, trand trabout tr164 trshort transwer trquestions.




In traddition trto trproviding tra trvariety trof trquestions trrelated trto treach trchapter trobjective, trthis
trtest trbank t r also tremploys tra trseries trof trtags trthat trcan trhelp trdesign treffective, trbalanced

trtests trby trthe trmeasure trof t r course troutcomes. trAll trof trthe trtags trare trincluded trwith trthe

trquestion trin trthe trtest trbank. trThese trtags t r include:

 ANS: trThe trcorrect transwer. tr(Suggested transwers trare trprovided trfor trthe trshort transwer
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