NETA ASSESSMENT
Test Bank
To accompany
TestIBankIpreparedIbyI
ConstantinIColonescuI
MacEwanIUniversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
ByIN.IGregoryIMankiwI/IRonaldID.IKneeboneI/IKennethIJ.IMcKenzie
TestIBankIpreparedIbyIConstantinIColonescu,IMacEwanIUniversity
NETAIcopyIeditor:IFrancesIRobinson
AvailableIonIInstructor’sIResourceICDIISBNI.I0-17-655440-8
COPYRIGHTI©2014IbyINelsonIEducationILtd.INelsonIisIaIregisteredItrademarkIusedIhereinIunderIlicence.IAllI rightsI
reserved.
ForImoreIinformationIcontactINelson,I1120IBirchmountIRoad,IToronto,IOntarioI M1KI5G4.IOrIyouIcanIvisitIourI Inte
rnetIsiteIatIwww.nelson.com.
ALLIRIGHTSIRESERVED.INoIpartIofIthisIworkIcoveredIbyItheIcopyrightIhereonImayIbeIreproducedIorIusedIinI anyIfor
mIorIbyIanyImeans—
graphic,Ielectronic,IorImechanical,IincludingIphotocopying,Irecording,Itaping,IwebI distributionIorIinformationIstor
ageIandIretrievalIsystems—withoutItheIwrittenIpermissionIofItheIpublisher
ii
, TABLEIOFICONTENTS
PartI1IIntroduction
ChapterI1ITenIPrinciplesIofIEconomics 1-1
ChapterI2IThinkingILikeIanIEconomist 2-1
ChapterI3IInterdependenceIandItheIGainsIfromITrade 3-1
PartI2ISupplyIAndIDemand:IHowIMarketsIWork
ChapterI4ITheIMarketIForcesIofISupplyIandIDemand 4-1
PartI3ITheIDataIofIMacroeconomics
ChapterI5IMeasuringIaINation’sIIncome 5-1
ChapterI6IMeasuringItheICostIofILiving 6-1
PartI4ITheIRealIEconomyIinItheILongIRun
ChapterI7IProductionIandIGrowth 7-1
ChapterI8ISaving,IInvestment,IandItheIFinancialISystem 8-1
ChapterI9IUnemploymentIandIItsINaturalIRate 9-1
PartI5IMoneyIAndIPricesIinItheILongIRun
ChapterI10ITheIMonetaryISystem 10-1
ChapterI11IMoneyIGrowthIandIInflation 11-1
PartI6ITheIMacroeconomicsIofIOpenIEconomies
ChapterI12IOpen-EconomyIMacroeconomics:IBasicIConcepts 12-1
ChapterI13IAIMacroeconomicITheoryIofItheISmallIOpenIEconomy 13-1
PartI7IShort-RunIEconomicIFluctuations
ChapterI14IAggregateIDemandIandIAggregateISupply 14-1
ChapterI15ITheIInfluenceIofIMonetaryIandIFiscalIPolicyIonIAggregateIDemand 15-1
ChapterI16ITheIShort-RunITradeoffIbetweenIInflationIandIUnemployment 16-1
PartI8IFinalIThoughts
ChapterI17IFiveIDebatesIoverIMacroeconomicIPolicy 17-1
iii
, PREFACE
InImostIpost-secondaryIcourses,IaIlargeIpercentageIofIstudentIassessmentIisIbasedIonImultiple-
I choiceItesting.IManyIinstructorsIuseImultiple-
choiceIreluctantly,IbelievingIthatIitIisIaI methodologyIbestIusedIforItestingIwhatIaIstudentIremembersIrath
erIthanIwhatIsheIorIheIhasI learned.
NelsonIEducationILtd.IunderstandsIthatIaIgoodIqualityImultiple-
choiceItestIbankIcanIprovideI theImeansItoImeasureIhigher-
levelIthinkingIskillsIasIwellIasIrecall.IRecognizingItheI importanceIofImultiple-
choiceItestingIinItoday’sIclassroom,IweIhaveIcreatedINETA—
theI NelsonIEducationITeachingIAdvantageIprogram—toIensureItheIvalueIofIourIhighIqualityItestI banks.
TheINETAIprogramIwasIcreatedIinIpartnershipIwithIDavidIDiBattista,IaI3MINationalITeachingI Fellow,Iprof
essorIofIpsychologyIatIBrockIUniversity,IandIresearcherIinItheIareaIofImultiple-
I choiceItesting.INETAIensuresIthatIsubject-
matterIexpertsIwhoIauthorItestIbanksIhaveIhadI trainingIinItwoIareas:IavoidingIcommonIerrorsIinItestIcon
struction,IandIdevelopingImultiple-
I choiceItestIquestionsIthatI“getIbeyondIremembering”ItoIassessIhigher-levelIthinking.
AllINETAItestIbanksIincludeIDavidIDiBattista’sIguideIforIinstructors,I“MultipleIChoiceITests:I GettingIBeyo
ndIRemembering.”IThisIguideIhasIbeenIdesignedItoIassistIyouIinIusingINelsonI testIbanksItoIachieveIyourI
desiredIoutcomesIinI yourIcourse.
TheITestIBankIforIPrinciplesIofIMacroeconomics,ISixthICanadianIEditionIhasIbeenIrevisedIforI CanadianIst
udentsIbyIConstantinIColonescu,IMacEwanIUniversity.ITheImultiple-
choiceI questionsIwereIwrittenIandIeditedItoIconformItoINETAIguidelines,IwhichIemphasizeItheI develop
mentIofIhigher-
orderIthinkingIandItheIeffectiveIconstructionIofIquestions.INETAI principlesIofIquestionIconstructionIhel
pIeliminateIambiguity,IarguableIanswers,Iguesswork,I andIunconsciousIcuesItoItest-
savvyIstudents,IresultingIinIaItestIthatIaccuratelyIreflectsIstudentI understanding.ITheITestIBankIoffersIov
erI3510Iquestions,IincludingIaboutI2822ImultipleI choice,IaboutI362Itrue/false,IaboutI162Iproblems,IandI
aboutI164IshortIanswerIquestions.
InIadditionItoIprovidingIaIvarietyIofIquestionsIrelatedItoIeachIchapterIobjective,IthisItestIbankI alsoIemploy
sIaIseriesIofItagsIthatIcanIhelpIdesignIeffective,IbalancedItestsIbyItheImeasureIofI courseIoutcomes.IAllIofIt
heItagsIareIincludedIwithItheIquestionIinItheItestIbank.ITheseItagsI include:
• ANS:ITheIcorrectIanswer.I(SuggestedIanswersIareIprovidedIforItheIshortIanswerIquestions.)
• PTS:ITheInumberIofIpointsIanIinstructorIcanIassignIforIeachIquestion.ITheIdefaultIisI1I point.
• BLM:ITheIcategoryIfromIBloom’sItaxonomyIforIlearningI(RememberIorIHigherIOrder).I ThisIcategoryIisI
includedItoIassistIinstructorsIinIassessingIstudent’sIhigher-orderIcognitiveI skills.
CopyrightI©I2014INelsonIEducationILimited. 1-1
Test Bank
To accompany
TestIBankIpreparedIbyI
ConstantinIColonescuI
MacEwanIUniversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
ByIN.IGregoryIMankiwI/IRonaldID.IKneeboneI/IKennethIJ.IMcKenzie
TestIBankIpreparedIbyIConstantinIColonescu,IMacEwanIUniversity
NETAIcopyIeditor:IFrancesIRobinson
AvailableIonIInstructor’sIResourceICDIISBNI.I0-17-655440-8
COPYRIGHTI©2014IbyINelsonIEducationILtd.INelsonIisIaIregisteredItrademarkIusedIhereinIunderIlicence.IAllI rightsI
reserved.
ForImoreIinformationIcontactINelson,I1120IBirchmountIRoad,IToronto,IOntarioI M1KI5G4.IOrIyouIcanIvisitIourI Inte
rnetIsiteIatIwww.nelson.com.
ALLIRIGHTSIRESERVED.INoIpartIofIthisIworkIcoveredIbyItheIcopyrightIhereonImayIbeIreproducedIorIusedIinI anyIfor
mIorIbyIanyImeans—
graphic,Ielectronic,IorImechanical,IincludingIphotocopying,Irecording,Itaping,IwebI distributionIorIinformationIstor
ageIandIretrievalIsystems—withoutItheIwrittenIpermissionIofItheIpublisher
ii
, TABLEIOFICONTENTS
PartI1IIntroduction
ChapterI1ITenIPrinciplesIofIEconomics 1-1
ChapterI2IThinkingILikeIanIEconomist 2-1
ChapterI3IInterdependenceIandItheIGainsIfromITrade 3-1
PartI2ISupplyIAndIDemand:IHowIMarketsIWork
ChapterI4ITheIMarketIForcesIofISupplyIandIDemand 4-1
PartI3ITheIDataIofIMacroeconomics
ChapterI5IMeasuringIaINation’sIIncome 5-1
ChapterI6IMeasuringItheICostIofILiving 6-1
PartI4ITheIRealIEconomyIinItheILongIRun
ChapterI7IProductionIandIGrowth 7-1
ChapterI8ISaving,IInvestment,IandItheIFinancialISystem 8-1
ChapterI9IUnemploymentIandIItsINaturalIRate 9-1
PartI5IMoneyIAndIPricesIinItheILongIRun
ChapterI10ITheIMonetaryISystem 10-1
ChapterI11IMoneyIGrowthIandIInflation 11-1
PartI6ITheIMacroeconomicsIofIOpenIEconomies
ChapterI12IOpen-EconomyIMacroeconomics:IBasicIConcepts 12-1
ChapterI13IAIMacroeconomicITheoryIofItheISmallIOpenIEconomy 13-1
PartI7IShort-RunIEconomicIFluctuations
ChapterI14IAggregateIDemandIandIAggregateISupply 14-1
ChapterI15ITheIInfluenceIofIMonetaryIandIFiscalIPolicyIonIAggregateIDemand 15-1
ChapterI16ITheIShort-RunITradeoffIbetweenIInflationIandIUnemployment 16-1
PartI8IFinalIThoughts
ChapterI17IFiveIDebatesIoverIMacroeconomicIPolicy 17-1
iii
, PREFACE
InImostIpost-secondaryIcourses,IaIlargeIpercentageIofIstudentIassessmentIisIbasedIonImultiple-
I choiceItesting.IManyIinstructorsIuseImultiple-
choiceIreluctantly,IbelievingIthatIitIisIaI methodologyIbestIusedIforItestingIwhatIaIstudentIremembersIrath
erIthanIwhatIsheIorIheIhasI learned.
NelsonIEducationILtd.IunderstandsIthatIaIgoodIqualityImultiple-
choiceItestIbankIcanIprovideI theImeansItoImeasureIhigher-
levelIthinkingIskillsIasIwellIasIrecall.IRecognizingItheI importanceIofImultiple-
choiceItestingIinItoday’sIclassroom,IweIhaveIcreatedINETA—
theI NelsonIEducationITeachingIAdvantageIprogram—toIensureItheIvalueIofIourIhighIqualityItestI banks.
TheINETAIprogramIwasIcreatedIinIpartnershipIwithIDavidIDiBattista,IaI3MINationalITeachingI Fellow,Iprof
essorIofIpsychologyIatIBrockIUniversity,IandIresearcherIinItheIareaIofImultiple-
I choiceItesting.INETAIensuresIthatIsubject-
matterIexpertsIwhoIauthorItestIbanksIhaveIhadI trainingIinItwoIareas:IavoidingIcommonIerrorsIinItestIcon
struction,IandIdevelopingImultiple-
I choiceItestIquestionsIthatI“getIbeyondIremembering”ItoIassessIhigher-levelIthinking.
AllINETAItestIbanksIincludeIDavidIDiBattista’sIguideIforIinstructors,I“MultipleIChoiceITests:I GettingIBeyo
ndIRemembering.”IThisIguideIhasIbeenIdesignedItoIassistIyouIinIusingINelsonI testIbanksItoIachieveIyourI
desiredIoutcomesIinI yourIcourse.
TheITestIBankIforIPrinciplesIofIMacroeconomics,ISixthICanadianIEditionIhasIbeenIrevisedIforI CanadianIst
udentsIbyIConstantinIColonescu,IMacEwanIUniversity.ITheImultiple-
choiceI questionsIwereIwrittenIandIeditedItoIconformItoINETAIguidelines,IwhichIemphasizeItheI develop
mentIofIhigher-
orderIthinkingIandItheIeffectiveIconstructionIofIquestions.INETAI principlesIofIquestionIconstructionIhel
pIeliminateIambiguity,IarguableIanswers,Iguesswork,I andIunconsciousIcuesItoItest-
savvyIstudents,IresultingIinIaItestIthatIaccuratelyIreflectsIstudentI understanding.ITheITestIBankIoffersIov
erI3510Iquestions,IincludingIaboutI2822ImultipleI choice,IaboutI362Itrue/false,IaboutI162Iproblems,IandI
aboutI164IshortIanswerIquestions.
InIadditionItoIprovidingIaIvarietyIofIquestionsIrelatedItoIeachIchapterIobjective,IthisItestIbankI alsoIemploy
sIaIseriesIofItagsIthatIcanIhelpIdesignIeffective,IbalancedItestsIbyItheImeasureIofI courseIoutcomes.IAllIofIt
heItagsIareIincludedIwithItheIquestionIinItheItestIbank.ITheseItagsI include:
• ANS:ITheIcorrectIanswer.I(SuggestedIanswersIareIprovidedIforItheIshortIanswerIquestions.)
• PTS:ITheInumberIofIpointsIanIinstructorIcanIassignIforIeachIquestion.ITheIdefaultIisI1I point.
• BLM:ITheIcategoryIfromIBloom’sItaxonomyIforIlearningI(RememberIorIHigherIOrder).I ThisIcategoryIisI
includedItoIassistIinstructorsIinIassessingIstudent’sIhigher-orderIcognitiveI skills.
CopyrightI©I2014INelsonIEducationILimited. 1-1
