NETA ASSESSMENT
Test Bank
to accompany
Test45Bank45prepared4
5by45Constantin45Colo
nescu45MacEwan45Un
iversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
p p p p p p p p
Sixth Canadian Edition
p p
By45N.45Gregory45Mankiw45/45Ronald45D.45Kneebone45/45Kenneth45J.45McKenzie
Test45Bank45prepared45by45Constantin45Colonescu,45MacEwan45University
NETA45copy45editor:45Frances45Robinson
Available45on45Instructor’s45Resource45CD45ISBN45.450-17-655440-8
COPYRIGHT45©201445by45Nelson45Education45Ltd.45Nelson45is45a45registered45trademark45used45herein45un
der45licence.45All4 5 rig45hts45reserved.
For45more45information45contact45Nelson,451120pBirchmount45Road,45Toronto,45Ontario4 5 M1K455G4.45Or45
you45can45visit45our45Internet45site45at45www.nelson.com.
ALL45RIGHTS45RESERVED.45No45part45of45this45work45covered45by45the45copyright45hereon45may45be45repr
oduced45or45used45in4 5 an45y45form45or45by45any45means—
graphic,45electronic,45or45mechanical,45including45photocopying,45recording,45taping,45web4 5 distribution45o
r45information45s45torage45and45retrieval45systems—without45the45written45permission45of45the45publisher
ii
, TABLE45OF45CONTENTS
Part45145Introduction
Chapter45145Ten45Principles45of45Economics 1-1
Chapter45245Thinking45Like45an45Economist 2-1
Chapter45345Interdependence45and45the45Gains45from45Trade 3-1
Part45245Supply45And45Demand:45How45Markets45Work
Chapter45445The45Market45Forces45of45Supply45and45Demand 4-1
Part45345The45Data45of45Macroeconomics
Chapter45545Measuring45a45Nation’s45Income 5-1
Chapter45645Measuring45the45Cost45of45Living 6-1
Part45445The45Real45Economy45in45the45Long45Run
Chapter45745Production45and45Growth 7-1
Chapter45845Saving,45Investment,45and45the45Financial45System 8-1
Chapter45945Unemployment45and45Its45Natural45Rate 9-1
Part45545Money45And45Prices45in45the45Long45Run
Chapter451045The45Monetary45System 10-1
Chapter451145Money45Growth45and45Inflation 11-1
Part45645The45Macroeconomics45of45Open45Economies
Chapter451245Open-Economy45Macroeconomics:45Basic45Concepts 12-1
Chapter451345A45Macroeconomic45Theory45of45the45Small45Open45Economy 13-1
Part45745Short-Run45Economic45Fluctuations
Chapter451445Aggregate45Demand45and45Aggregate45Supply 14-1
Chapter451545The45Influence45of45Monetary45and45Fiscal45Policy45on45Aggregate45Demand15-1
Chapter451645The45Short-Run45Tradeoff45between45Inflation45and45Unemployment 16-1
Part45845Final45Thoughts
Chapter451745Five45Debates45over45Macroeconomic45Policy 17-1
iii
, PREFACE
In45most45post-
secondary45courses,45a45large45percentage45of45student45assessment45is45based45o
n45multiple-45choice45testing.45Many45instructors45use45multiple-
choice45reluctantly,45believing45that45it45is45a4 5 methodology45best45used45for45testing45what45a4
5student45rem45embers45rather45than45what45she45or45he45has4 5 learned.
Nelson45Education45Ltd.45understands45that45a45good45quality45multipl
e-
45choice45test45bank45can45provide4 5 the45means45to45measure45high
er-
level45thinking45skills45as45well45as45recall.45Recognizing45the4 5 importance45of45mu
ltiple-45choice45testing45in45today’s45classroom,45we45have45created45NETA—
the4 5 Nelson45Education45Teaching45Advantage45progr
am—
45to45ensure45the45value45of45our45high45quality45test
4 5 banks.
The45NETA45program45was45created45in45partnership45with45David45DiBattista,45a453M45National4
5Teaching4 5 F45ellow,45professor45of45psychology45at45Brock45University,45and45researcher45in45
the45area45of45multiple-45choice45testing.45NETA45ensures45that45subject-
matter45experts45who45author45test45banks45have45had4 5 training45in45two45areas:45avoiding45
common45error45s45in45test45construction,45and45developing45multiple-
choice45test45questions45that45“get45beyond45remembering”45to45assess45higher-level45thinking.
All45NETA45test45banks45include45David45DiBattista’s45guide45for45instructors,45“Multiple45Choi
ce45Tests:4 5 G45etting45Beyond45Remembering.”45This45guide45has45been45designed45to45assi
st45you45in45using45Nelson4 5 tes45t45banks45to45achieve45your45desired45outcomes45in45your45
course.
The45TestpBank45for45Principles45of45Macroeconomics,45Sixth45Canadian45Edition45has45been4
5revised45for45Canadian45students45by45Constantin45Colonescu,45MacEwan45University.45Th
e45multiple-
choice4 5 questions45were45written45and45edited45to45conform45to45NETApguidelines,45which45
emphasize45t45he4 5 development45of45higher-
order45thinking45and45the45effective45construction45of45questions.45NETA4 5 principles45of45qu
estion45const45ruction45help45eliminate45ambiguity,45arguable45answers,45guesswork,4 5 and45
unconscious45cues45to45tes45t-
4
Test Bank
to accompany
Test45Bank45prepared4
5by45Constantin45Colo
nescu45MacEwan45Un
iversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
p p p p p p p p
Sixth Canadian Edition
p p
By45N.45Gregory45Mankiw45/45Ronald45D.45Kneebone45/45Kenneth45J.45McKenzie
Test45Bank45prepared45by45Constantin45Colonescu,45MacEwan45University
NETA45copy45editor:45Frances45Robinson
Available45on45Instructor’s45Resource45CD45ISBN45.450-17-655440-8
COPYRIGHT45©201445by45Nelson45Education45Ltd.45Nelson45is45a45registered45trademark45used45herein45un
der45licence.45All4 5 rig45hts45reserved.
For45more45information45contact45Nelson,451120pBirchmount45Road,45Toronto,45Ontario4 5 M1K455G4.45Or45
you45can45visit45our45Internet45site45at45www.nelson.com.
ALL45RIGHTS45RESERVED.45No45part45of45this45work45covered45by45the45copyright45hereon45may45be45repr
oduced45or45used45in4 5 an45y45form45or45by45any45means—
graphic,45electronic,45or45mechanical,45including45photocopying,45recording,45taping,45web4 5 distribution45o
r45information45s45torage45and45retrieval45systems—without45the45written45permission45of45the45publisher
ii
, TABLE45OF45CONTENTS
Part45145Introduction
Chapter45145Ten45Principles45of45Economics 1-1
Chapter45245Thinking45Like45an45Economist 2-1
Chapter45345Interdependence45and45the45Gains45from45Trade 3-1
Part45245Supply45And45Demand:45How45Markets45Work
Chapter45445The45Market45Forces45of45Supply45and45Demand 4-1
Part45345The45Data45of45Macroeconomics
Chapter45545Measuring45a45Nation’s45Income 5-1
Chapter45645Measuring45the45Cost45of45Living 6-1
Part45445The45Real45Economy45in45the45Long45Run
Chapter45745Production45and45Growth 7-1
Chapter45845Saving,45Investment,45and45the45Financial45System 8-1
Chapter45945Unemployment45and45Its45Natural45Rate 9-1
Part45545Money45And45Prices45in45the45Long45Run
Chapter451045The45Monetary45System 10-1
Chapter451145Money45Growth45and45Inflation 11-1
Part45645The45Macroeconomics45of45Open45Economies
Chapter451245Open-Economy45Macroeconomics:45Basic45Concepts 12-1
Chapter451345A45Macroeconomic45Theory45of45the45Small45Open45Economy 13-1
Part45745Short-Run45Economic45Fluctuations
Chapter451445Aggregate45Demand45and45Aggregate45Supply 14-1
Chapter451545The45Influence45of45Monetary45and45Fiscal45Policy45on45Aggregate45Demand15-1
Chapter451645The45Short-Run45Tradeoff45between45Inflation45and45Unemployment 16-1
Part45845Final45Thoughts
Chapter451745Five45Debates45over45Macroeconomic45Policy 17-1
iii
, PREFACE
In45most45post-
secondary45courses,45a45large45percentage45of45student45assessment45is45based45o
n45multiple-45choice45testing.45Many45instructors45use45multiple-
choice45reluctantly,45believing45that45it45is45a4 5 methodology45best45used45for45testing45what45a4
5student45rem45embers45rather45than45what45she45or45he45has4 5 learned.
Nelson45Education45Ltd.45understands45that45a45good45quality45multipl
e-
45choice45test45bank45can45provide4 5 the45means45to45measure45high
er-
level45thinking45skills45as45well45as45recall.45Recognizing45the4 5 importance45of45mu
ltiple-45choice45testing45in45today’s45classroom,45we45have45created45NETA—
the4 5 Nelson45Education45Teaching45Advantage45progr
am—
45to45ensure45the45value45of45our45high45quality45test
4 5 banks.
The45NETA45program45was45created45in45partnership45with45David45DiBattista,45a453M45National4
5Teaching4 5 F45ellow,45professor45of45psychology45at45Brock45University,45and45researcher45in45
the45area45of45multiple-45choice45testing.45NETA45ensures45that45subject-
matter45experts45who45author45test45banks45have45had4 5 training45in45two45areas:45avoiding45
common45error45s45in45test45construction,45and45developing45multiple-
choice45test45questions45that45“get45beyond45remembering”45to45assess45higher-level45thinking.
All45NETA45test45banks45include45David45DiBattista’s45guide45for45instructors,45“Multiple45Choi
ce45Tests:4 5 G45etting45Beyond45Remembering.”45This45guide45has45been45designed45to45assi
st45you45in45using45Nelson4 5 tes45t45banks45to45achieve45your45desired45outcomes45in45your45
course.
The45TestpBank45for45Principles45of45Macroeconomics,45Sixth45Canadian45Edition45has45been4
5revised45for45Canadian45students45by45Constantin45Colonescu,45MacEwan45University.45Th
e45multiple-
choice4 5 questions45were45written45and45edited45to45conform45to45NETApguidelines,45which45
emphasize45t45he4 5 development45of45higher-
order45thinking45and45the45effective45construction45of45questions.45NETA4 5 principles45of45qu
estion45const45ruction45help45eliminate45ambiguity,45arguable45answers,45guesswork,4 5 and45
unconscious45cues45to45tes45t-
4
