Test Bank to accompany Principles of Macroeconomics,6th Canadian Edition

NETAASSESSMENT
Test Bank
To accompany




TestKBankKpreparedKby
K ConstantinKColonescuK
MacEwanKUniversity

,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition

ByKN.KGregoryKMankiwK/KRonaldKD.KKneeboneK/KKennethKJ.KMcKenzie



TestKBankKpreparedKbyKConstantinKColonescu,KMacEwanKUniversity



NETAKcopyKeditor:KFrancesKRobinson


AvailableKonKInstructor’sKResourceKCDKISBNK.K0-17-655440-8

COPYRIGHTK©2014KbyKNelsonKEducationKLtd.KNelsonKisKaKregisteredKtrademarkKusedKhereinKunderKlicence.KAllK rig
htsKreserved.

ForKmoreKinformationKcontactKNelson,K1120KBirchmountKRoad,KToronto,KOntarioK M1KK5G4.KOrKyouKcanKvisitKourK
InternetKsiteKatKwww.nelson.com.

ALLKRIGHTSKRESERVED.KNoKpartKofKthisKworkKcoveredKbyKtheKcopyrightKhereonKmayKbeKreproducedKorKusedKinK an
yKformKorKbyKanyKmeans—
graphic,Kelectronic,KorKmechanical,KincludingKphotocopying,Krecording,Ktaping,KwebK distributionKorKinformationKst
orageKandKretrievalKsystems—withoutKtheKwrittenKpermissionKofKtheKpublisher




ii

, TABLE OF CONTENTS
K K




PartK1KIntroduction
ChapterK1KTenKPrinciplesKofKEconomics 1-1
ChapterK2KThinkingKLikeKanKEconomist 2-1
ChapterK3KInterdependenceKandKtheKGainsKfromKTrade 3-1

PartK2KSupplyKAndKDemand:KHowKMarketsKWork
ChapterK4KTheKMarketKForcesKofKSupplyKandKDemand 4-1

PartK3KTheKDataKofKMacroeconomics
ChapterK5KMeasuringKaKNation’sKIncome 5-1
ChapterK6KMeasuringKtheKCostKofKLiving 6-1

PartK4KTheKRealKEconomyKinKtheKLongKRun
ChapterK7KProductionKandKGrowth 7-1
ChapterK8KSaving,KInvestment,KandKtheKFinancialKSystem 8-1
ChapterK9KUnemploymentKandKItsKNaturalKRate 9-1

PartK5KMoneyKAndKPricesKinKtheKLongKRun
ChapterK10KTheKMonetaryKSystem 10-1
ChapterK11KMoneyKGrowthKandKInflation 11-1

PartK6KTheKMacroeconomicsKofKOpenKEconomies
ChapterK12KOpen-EconomyKMacroeconomics:KBasicKConcepts 12-1
ChapterK13KAKMacroeconomicKTheoryKofKtheKSmallKOpenKEconomy 13-1

PartK7KShort-RunKEconomicKFluctuations
ChapterK14KAggregateKDemandKandKAggregateKSupply 14-1
ChapterK15KTheKInfluenceKofKMonetaryKandKFiscalKPolicyKonKAggregateKDemand 15-1
ChapterK16KTheKShort-RunKTradeoffKbetweenKInflationKandKUnemployment 16-1

PartK8KFinalKThoughts
ChapterK17KFiveKDebatesKoverKMacroeconomicKPolicy 17-1




iii

, PREFACE




InKmostKpost-
secondaryKcourses,KaKlargeKpercentageKofKstudentKassessmentKisKbasedKonKmultiple-
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choiceKreluctantly,KbelievingKthatKitKisKaK methodologyKbestKusedKforKtestingKwhatKaKstudentKrem
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theK NelsonKEducationKTeachingKAdvantageKprogram—
toKensureKtheKvalueKofKourKhighKqualityKtestK banks.

TheKNETAKprogramKwasKcreatedKinKpartnershipKwithKDavidKDiBattista,KaK3MKNationalKTeachingK F
ellow,KprofessorKofKpsychologyKatKBrockKUniversity,KandKresearcherKinKtheKareaKofKmultiple-
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ettingKBeyondKRemembering.”KThisKguideKhasKbeenKdesignedKtoKassistKyouKinKusingKNelsonK tes
tKbanksKtoKachieveKyourKdesiredKoutcomesKinK yourKcourse.

TheKTestKBankKforKPrinciplesKofKMacroeconomics,KSixthKCanadianKEditionKhasKbeenKrevisedKforK
CanadianKstudentsKbyKConstantinKColonescu,KMacEwanKUniversity.KTheKmultiple-
choiceK questionsKwereKwrittenKandKeditedKtoKconformKtoKNETAKguidelines,KwhichKemphasizeKt
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nkKoffersKoverK3510Kquestions,KincludingKaboutK2822KmultipleK choice,KaboutK362Ktrue/false,Kab
outK162Kproblems,KandKaboutK164KshortKanswerKquestions.

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alsoKemploysKaKseriesKofKtagsKthatKcanKhelpKdesignKeffective,KbalancedKtestsKbyKtheKmeasureKofK c
4