NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By64N.64Gregory64Mankiw64/64Ronald64D.64Kneebone64/64Kenneth64J.64McKenzie
Test64Bank64prepared64by64Constantin64Colonescu,64MacEwan64University
NETA64copy64editor:64Frances64Robinson
Available64on64Instructor’s64Resource64CD64ISBN64.640-17-655440-8
COPYRIGHT64©201464by64Nelson64Education64Ltd.64Nelson64is64a64registered64trademark64used64herein64und
er64licence.64All6 4 rights64reserved.
For64more64information64contact64Nelson,64112064Birchmount64Road,64Toronto,64Ontario6 4 M1K645G4.64Or64
you64can64visit64our6 4 Internet64site64at64www.nelson.com.
ALL64RIGHTS64RESERVED.64No64part64of64this64work64covered64by64the64copyright64hereon64may64be64reprod
uced64or64used64in6 4 any64form64or64by64any64means—
graphic,64electronic,64or64mechanical,64including64photocopying,64recording,64taping,64web6 4 distribution64or
64information64storage64and64retrieval64systems—without64the64written64permission64of64the64publisher
ii
, TABLE64OF64CONTENTS
Part64164Introduction
Chapter64164Ten64Principles64of64Economics 1-1
Chapter64264Thinking64Like64an64Economist 2-1
Chapter64364Interdependence64and64the64Gains64from64Trade 3-1
Part64264Supply64And64Demand:64How64Markets64Work
Chapter64464The64Market64Forces64of64Supply64and64Demand 4-1
Part64364The64Data64of64Macroeconomics
Chapter64564Measuring64a64Nation’s64Income 5-1
Chapter64664Measuring64the64Cost64of64Living 6-1
Part64464The64Real64Economy64in64the64Long64Run
Chapter64764Production64and64Growth 7-1
Chapter64864Saving,64Investment,64and64the64Financial64System 8-1
Chapter64964Unemployment64and64Its64Natural64Rate 9-1
Part64564Money64And64Prices64in64the64Long64Run
Chapter641064The64Monetary64System 10-1
Chapter641164Money64Growth64and64Inflation 11-1
Part64664The64Macroeconomics64of64Open64Economies
Chapter641264Open-Economy64Macroeconomics:64Basic64Concepts 12-1
Chapter641364A64Macroeconomic64Theory64of64the64Small64Open64Economy 13-1
Part64764Short-Run64Economic64Fluctuations
Chapter641464Aggregate64Demand64and64Aggregate64Supply 14-1
Chapter641564The64Influence64of64Monetary64and64Fiscal64Policy64on64Aggregate64Demand
15-1
Chapter641664The64Short-Run64Tradeoff64between64Inflation64and64Unemployment 16-1
Part64864Final64Thoughts
Chapter641764Five64Debates64over64Macroeconomic64Policy 17-1
iii
, PREFACE
In64most64post-
secondary64courses,64a64large64percentage64of64student64assessment64is64based64on64multiple-
6 4 choice64testing.64Many64instructors64use64multiple-
choice64reluctantly,64believing64that64it64is64a6 4 methodology64best64used64for64testing64what6
4a64student64remembers64rather64than64what64she64or64he64has6 4 learned.
Nelson64Education64Ltd.64understands64that64a64good64quality64multiple-
choice64test64bank64can64provide6 4 the64means64to64measure64higher-
level64thinking64skills64as64well64as64recall.64Recognizing64the6 4 importance64of64multiple-
choice64testing64in64today’s64classroom,64we64have64created64NETA—
the6 4 Nelson64Education64Teaching64Advantage64program—
to64ensure64the64value64of64our64high64quality64test6 4 banks.
The64NETA64program64was64created64in64partnership64with64David64DiBattista,64a643M64Nation
al64Teaching6 4 Fellow,64professor64of64psychology64at64Brock64University,64and64researcher64i
n64the64area64of64multiple-6 4 choice64testing.64NETA64ensures64that64subject-
matter64experts64who64author64test64banks64have64had6 4 training64in64two64areas:64avoiding6
4common64errors64in64test64construction,64and64developing64multiple-
6 4 choice64test64questions64that64“get64beyond64remembering”64to64assess64higher-
level64thinking.
All64NETA64test64banks64include64David64DiBattista’s64guide64for64instructors,64“Multiple64Ch
oice64Tests:6 4 Getting64Beyond64Remembering.”64This64guide64has64been64designed64to64ass
ist64you64in64using64Nelson6 4 test64banks64to64achieve64your64desired64outcomes64in64 your64
course.
The64Test64Bank64for64Principles64of64Macroeconomics,64Sixth64Canadian64Edition64has64been
64revised64for6 4 Canadian64students64by64Constantin64Colonescu,64MacEwan64University.64Th
e64multiple-
choice6 4 questions64were64written64and64edited64to64conform64to64NETA64guidelines,64whic
h64emphasize64the6 4 development64of64higher-
order64thinking64and64the64effective64construction64of64questions.64NETA6 4 principles64of64q
uestion64construction64help64eliminate64ambiguity,64arguable64answers,64guesswork,6 4 and6
4unconscious64cues64to64test-
savvy64students,64resulting64in64a64test64that64accurately64reflects64student6 4 understanding.
64The64Test64Bank64offers64over64351064questions,64including64about64282264multiple6 4 choic
e,64about6436264true/false,64about6416264problems,64and64about6416464short64answer64quest
ions.
4
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By64N.64Gregory64Mankiw64/64Ronald64D.64Kneebone64/64Kenneth64J.64McKenzie
Test64Bank64prepared64by64Constantin64Colonescu,64MacEwan64University
NETA64copy64editor:64Frances64Robinson
Available64on64Instructor’s64Resource64CD64ISBN64.640-17-655440-8
COPYRIGHT64©201464by64Nelson64Education64Ltd.64Nelson64is64a64registered64trademark64used64herein64und
er64licence.64All6 4 rights64reserved.
For64more64information64contact64Nelson,64112064Birchmount64Road,64Toronto,64Ontario6 4 M1K645G4.64Or64
you64can64visit64our6 4 Internet64site64at64www.nelson.com.
ALL64RIGHTS64RESERVED.64No64part64of64this64work64covered64by64the64copyright64hereon64may64be64reprod
uced64or64used64in6 4 any64form64or64by64any64means—
graphic,64electronic,64or64mechanical,64including64photocopying,64recording,64taping,64web6 4 distribution64or
64information64storage64and64retrieval64systems—without64the64written64permission64of64the64publisher
ii
, TABLE64OF64CONTENTS
Part64164Introduction
Chapter64164Ten64Principles64of64Economics 1-1
Chapter64264Thinking64Like64an64Economist 2-1
Chapter64364Interdependence64and64the64Gains64from64Trade 3-1
Part64264Supply64And64Demand:64How64Markets64Work
Chapter64464The64Market64Forces64of64Supply64and64Demand 4-1
Part64364The64Data64of64Macroeconomics
Chapter64564Measuring64a64Nation’s64Income 5-1
Chapter64664Measuring64the64Cost64of64Living 6-1
Part64464The64Real64Economy64in64the64Long64Run
Chapter64764Production64and64Growth 7-1
Chapter64864Saving,64Investment,64and64the64Financial64System 8-1
Chapter64964Unemployment64and64Its64Natural64Rate 9-1
Part64564Money64And64Prices64in64the64Long64Run
Chapter641064The64Monetary64System 10-1
Chapter641164Money64Growth64and64Inflation 11-1
Part64664The64Macroeconomics64of64Open64Economies
Chapter641264Open-Economy64Macroeconomics:64Basic64Concepts 12-1
Chapter641364A64Macroeconomic64Theory64of64the64Small64Open64Economy 13-1
Part64764Short-Run64Economic64Fluctuations
Chapter641464Aggregate64Demand64and64Aggregate64Supply 14-1
Chapter641564The64Influence64of64Monetary64and64Fiscal64Policy64on64Aggregate64Demand
15-1
Chapter641664The64Short-Run64Tradeoff64between64Inflation64and64Unemployment 16-1
Part64864Final64Thoughts
Chapter641764Five64Debates64over64Macroeconomic64Policy 17-1
iii
, PREFACE
In64most64post-
secondary64courses,64a64large64percentage64of64student64assessment64is64based64on64multiple-
6 4 choice64testing.64Many64instructors64use64multiple-
choice64reluctantly,64believing64that64it64is64a6 4 methodology64best64used64for64testing64what6
4a64student64remembers64rather64than64what64she64or64he64has6 4 learned.
Nelson64Education64Ltd.64understands64that64a64good64quality64multiple-
choice64test64bank64can64provide6 4 the64means64to64measure64higher-
level64thinking64skills64as64well64as64recall.64Recognizing64the6 4 importance64of64multiple-
choice64testing64in64today’s64classroom,64we64have64created64NETA—
the6 4 Nelson64Education64Teaching64Advantage64program—
to64ensure64the64value64of64our64high64quality64test6 4 banks.
The64NETA64program64was64created64in64partnership64with64David64DiBattista,64a643M64Nation
al64Teaching6 4 Fellow,64professor64of64psychology64at64Brock64University,64and64researcher64i
n64the64area64of64multiple-6 4 choice64testing.64NETA64ensures64that64subject-
matter64experts64who64author64test64banks64have64had6 4 training64in64two64areas:64avoiding6
4common64errors64in64test64construction,64and64developing64multiple-
6 4 choice64test64questions64that64“get64beyond64remembering”64to64assess64higher-
level64thinking.
All64NETA64test64banks64include64David64DiBattista’s64guide64for64instructors,64“Multiple64Ch
oice64Tests:6 4 Getting64Beyond64Remembering.”64This64guide64has64been64designed64to64ass
ist64you64in64using64Nelson6 4 test64banks64to64achieve64your64desired64outcomes64in64 your64
course.
The64Test64Bank64for64Principles64of64Macroeconomics,64Sixth64Canadian64Edition64has64been
64revised64for6 4 Canadian64students64by64Constantin64Colonescu,64MacEwan64University.64Th
e64multiple-
choice6 4 questions64were64written64and64edited64to64conform64to64NETA64guidelines,64whic
h64emphasize64the6 4 development64of64higher-
order64thinking64and64the64effective64construction64of64questions.64NETA6 4 principles64of64q
uestion64construction64help64eliminate64ambiguity,64arguable64answers,64guesswork,6 4 and6
4unconscious64cues64to64test-
savvy64students,64resulting64in64a64test64that64accurately64reflects64student6 4 understanding.
64The64Test64Bank64offers64over64351064questions,64including64about64282264multiple6 4 choic
e,64about6436264true/false,64about6416264problems,64and64about6416464short64answer64quest
ions.
4
