NETA ASSESSMENT
46
Test Bank 46
to46accompany
Test46Bank46prepared
46by4 6 Constantin46Col
onescu4 6 MacEwan46U
niversity
,NETA46Assessment:46Test46Bank46to46accompany46Principles46of46Macroeconomi
cs,
Sixth46Canadian46Edition
By46N.46Gregory46Mankiw46/46Ronald46D.46Kneebone46/46Kenneth46J.46McKenzie
Test46Bank46prepared46by46Constantin46Colonescu,46MacEwan46University
NETA46copy46editor:46Frances46Robinson
Available46on46Instructor’s46Resource46CD46ISBN46.460-17-655440-8
COPYRIGHT46©201446by46Nelson46Education46Ltd.46Nelson46is46a46registered46trademark46used46herein46und
er46licence.46All4 6 rights46reserved.
For46more46information46contact46Nelson,46112046Birchmount46Road,46Toronto,46Ontario4 6 M1K465G4.46Or46
you46can46visit46our4 6 Internet46site46at46www.nelson.com.
ALL46RIGHTS46RESERVED.46No46part46of46this46work46covered46by46the46copyright46hereon46may46be46reprod
uced46or46used46in4 6 any46form46or46by46any46means—
graphic,46electronic,46or46mechanical,46including46photocopying,46recording,46taping,46web4 6 distribution46or
46information46storage46and46retrieval46systems—without46the46written46permission46of46the46publisher
ii
, TABLE46OF46CONTENTS
Part46146Introduction
Chapter46146Ten46Principles46of46Economics 1-1
Chapter46246Thinking46Like46an46Economist 2-1
Chapter46346Interdependence46and46the46Gains46from46Trade 3-1
Part46246Supply46And46Demand:46How46Markets46Work
Chapter46446The46Market46Forces46of46Supply46and46Demand 4-1
Part46346The46Data46of46Macroeconomics
Chapter46546Measuring46a46Nation’s46Income 5-1
Chapter46646Measuring46the46Cost46of46Living 6-1
Part46446The46Real46Economy46in46the46Long46Run
Chapter46746Production46and46Growth 7-1
Chapter46846Saving,46Investment,46and46the46Financial46System 8-1
Chapter46946Unemployment46and46Its46Natural46Rate 9-1
Part46546Money46And46Prices46in46the46Long46Run
Chapter461046The46Monetary46System 10-1
Chapter461146Money46Growth46and46Inflation 11-1
Part46646The46Macroeconomics46of46Open46Economies
Chapter461246Open-Economy46Macroeconomics:46Basic46Concepts 12-1
Chapter461346A46Macroeconomic46Theory46of46the46Small46Open46Economy 13-1
Part46746Short-Run46Economic46Fluctuations
Chapter461446Aggregate46Demand46and46Aggregate46Supply 14-1
Chapter461546The46Influence46of46Monetary46and46Fiscal46Policy46on46Aggregate46Demand
15-1
Chapter461646The46Short-Run46Tradeoff46between46Inflation46and46Unemployment 16-1
Part46846Final46Thoughts
Chapter461746Five46Debates46over46Macroeconomic46Policy 17-1
iii
, PREFACE
In46most46post-
secondary46courses,46a46large46percentage46of46student46assessment46is46based46on46multiple-
4 6 choice46testing.46Many46instructors46use46multiple-
choice46reluctantly,46believing46that46it46is46a4 6 methodology46best46used46for46testing46what4
6a46student46remembers46rather46than46what46she46or46he46has4 6 learned.
Nelson46Education46Ltd.46understands46that46a46good46quality46multiple-
choice46test46bank46can46provide4 6 the46means46to46measure46higher-
level46thinking46skills46as46well46as46recall.46Recognizing46the4 6 importance46of46multiple-
choice46testing46in46today’s46classroom,46we46have46created46NETA—
the4 6 Nelson46Education46Teaching46Advantage46program—
to46ensure46the46value46of46our46high46quality46test4 6 banks.
The46NETA46program46was46created46in46partnership46with46David46DiBattista,46a463M46Nation
al46Teaching4 6 Fellow,46professor46of46psychology46at46Brock46University,46and46researcher46i
n46the46area46of46multiple-4 6 choice46testing.46NETA46ensures46that46subject-
matter46experts46who46author46test46banks46have46had4 6 training46in46two46areas:46avoiding4
6common46errors46in46test46construction,46and46developing46multiple-
4 6 choice46test46questions46that46“get46beyond46remembering”46to46assess46higher-
level46thinking.
All46NETA46test46banks46include46David46DiBattista’s46guide46for46instructors,46“Multiple46Ch
oice46Tests:4 6 Getting46Beyond46Remembering.”46This46guide46has46been46designed46to46ass
ist46you46in46using46Nelson4 6 test46banks46to46achieve46your46desired46outcomes46in46 your46
course.
The46Test46Bank46for46Principles46of46Macroeconomics,46Sixth46Canadian46Edition46has46been
46revised46for4 6 Canadian46students46by46Constantin46Colonescu,46MacEwan46University.46Th
e46multiple-
choice4 6 questions46were46written46and46edited46to46conform46to46NETA46guidelines,46whic
h46emphasize46the4 6 development46of46higher-
order46thinking46and46the46effective46construction46of46questions.46NETA4 6 principles46of46q
uestion46construction46help46eliminate46ambiguity,46arguable46answers,46guesswork,4 6 and4
6unconscious46cues46to46test-
savvy46students,46resulting46in46a46test46that46accurately46reflects46student4 6 understanding.
46The46Test46Bank46offers46over46351046questions,46including46about46282246multiple4 6 choic
e,46about4636246true/false,46about4616246problems,46and46about4616446short46answer46quest
ions.
4
46
Test Bank 46
to46accompany
Test46Bank46prepared
46by4 6 Constantin46Col
onescu4 6 MacEwan46U
niversity
,NETA46Assessment:46Test46Bank46to46accompany46Principles46of46Macroeconomi
cs,
Sixth46Canadian46Edition
By46N.46Gregory46Mankiw46/46Ronald46D.46Kneebone46/46Kenneth46J.46McKenzie
Test46Bank46prepared46by46Constantin46Colonescu,46MacEwan46University
NETA46copy46editor:46Frances46Robinson
Available46on46Instructor’s46Resource46CD46ISBN46.460-17-655440-8
COPYRIGHT46©201446by46Nelson46Education46Ltd.46Nelson46is46a46registered46trademark46used46herein46und
er46licence.46All4 6 rights46reserved.
For46more46information46contact46Nelson,46112046Birchmount46Road,46Toronto,46Ontario4 6 M1K465G4.46Or46
you46can46visit46our4 6 Internet46site46at46www.nelson.com.
ALL46RIGHTS46RESERVED.46No46part46of46this46work46covered46by46the46copyright46hereon46may46be46reprod
uced46or46used46in4 6 any46form46or46by46any46means—
graphic,46electronic,46or46mechanical,46including46photocopying,46recording,46taping,46web4 6 distribution46or
46information46storage46and46retrieval46systems—without46the46written46permission46of46the46publisher
ii
, TABLE46OF46CONTENTS
Part46146Introduction
Chapter46146Ten46Principles46of46Economics 1-1
Chapter46246Thinking46Like46an46Economist 2-1
Chapter46346Interdependence46and46the46Gains46from46Trade 3-1
Part46246Supply46And46Demand:46How46Markets46Work
Chapter46446The46Market46Forces46of46Supply46and46Demand 4-1
Part46346The46Data46of46Macroeconomics
Chapter46546Measuring46a46Nation’s46Income 5-1
Chapter46646Measuring46the46Cost46of46Living 6-1
Part46446The46Real46Economy46in46the46Long46Run
Chapter46746Production46and46Growth 7-1
Chapter46846Saving,46Investment,46and46the46Financial46System 8-1
Chapter46946Unemployment46and46Its46Natural46Rate 9-1
Part46546Money46And46Prices46in46the46Long46Run
Chapter461046The46Monetary46System 10-1
Chapter461146Money46Growth46and46Inflation 11-1
Part46646The46Macroeconomics46of46Open46Economies
Chapter461246Open-Economy46Macroeconomics:46Basic46Concepts 12-1
Chapter461346A46Macroeconomic46Theory46of46the46Small46Open46Economy 13-1
Part46746Short-Run46Economic46Fluctuations
Chapter461446Aggregate46Demand46and46Aggregate46Supply 14-1
Chapter461546The46Influence46of46Monetary46and46Fiscal46Policy46on46Aggregate46Demand
15-1
Chapter461646The46Short-Run46Tradeoff46between46Inflation46and46Unemployment 16-1
Part46846Final46Thoughts
Chapter461746Five46Debates46over46Macroeconomic46Policy 17-1
iii
, PREFACE
In46most46post-
secondary46courses,46a46large46percentage46of46student46assessment46is46based46on46multiple-
4 6 choice46testing.46Many46instructors46use46multiple-
choice46reluctantly,46believing46that46it46is46a4 6 methodology46best46used46for46testing46what4
6a46student46remembers46rather46than46what46she46or46he46has4 6 learned.
Nelson46Education46Ltd.46understands46that46a46good46quality46multiple-
choice46test46bank46can46provide4 6 the46means46to46measure46higher-
level46thinking46skills46as46well46as46recall.46Recognizing46the4 6 importance46of46multiple-
choice46testing46in46today’s46classroom,46we46have46created46NETA—
the4 6 Nelson46Education46Teaching46Advantage46program—
to46ensure46the46value46of46our46high46quality46test4 6 banks.
The46NETA46program46was46created46in46partnership46with46David46DiBattista,46a463M46Nation
al46Teaching4 6 Fellow,46professor46of46psychology46at46Brock46University,46and46researcher46i
n46the46area46of46multiple-4 6 choice46testing.46NETA46ensures46that46subject-
matter46experts46who46author46test46banks46have46had4 6 training46in46two46areas:46avoiding4
6common46errors46in46test46construction,46and46developing46multiple-
4 6 choice46test46questions46that46“get46beyond46remembering”46to46assess46higher-
level46thinking.
All46NETA46test46banks46include46David46DiBattista’s46guide46for46instructors,46“Multiple46Ch
oice46Tests:4 6 Getting46Beyond46Remembering.”46This46guide46has46been46designed46to46ass
ist46you46in46using46Nelson4 6 test46banks46to46achieve46your46desired46outcomes46in46 your46
course.
The46Test46Bank46for46Principles46of46Macroeconomics,46Sixth46Canadian46Edition46has46been
46revised46for4 6 Canadian46students46by46Constantin46Colonescu,46MacEwan46University.46Th
e46multiple-
choice4 6 questions46were46written46and46edited46to46conform46to46NETA46guidelines,46whic
h46emphasize46the4 6 development46of46higher-
order46thinking46and46the46effective46construction46of46questions.46NETA4 6 principles46of46q
uestion46construction46help46eliminate46ambiguity,46arguable46answers,46guesswork,4 6 and4
6unconscious46cues46to46test-
savvy46students,46resulting46in46a46test46that46accurately46reflects46student4 6 understanding.
46The46Test46Bank46offers46over46351046questions,46including46about46282246multiple4 6 choic
e,46about4636246true/false,46about4616246problems,46and46about4616446short46answer46quest
ions.
4
