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Study Material
NETAASSESSMENT
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, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
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NETAAssessment:Test Bank toaccompany PrinciplesofMacroeconomics, z/f l l z/f /zf
SixthCanadianEdition z/f
ByN. Gregory Mankiw/Ronald D.lKneebone/ Kenneth J.lMcKenzie
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Test Bankpreparedby Constantin Colonescu, MacEwan University
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NETAcopyeditor: Frances Robinson zz/f zz/f
AvailableonlInstructor‘s ResourcelCD ISBN. 0-17-655440-8 zz/f zz/f zz/f
COPYRIGHT ©2014lby Nelson Education Ltd. Nelsonlis a registered trademark used hereinlunder licence.
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Allrightsl
zz/f reserved. z z / f
For more informationlcontact Nelson, 1120 Birchmount Road, Toronto, Ontario M1Kl5G4. Or you canlvisit
zz/f zz/f zz/f zz/f zz/f zz/f z/f zz/f zz/f zz/f zz/f zz/f
ourInter net sitelat www.nelson.com.
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ALLlRIGHTS RESERVED. No partofthis work covered bythe copyright hereon maybe reproduced or usedlinany
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fo rmlorlbylany means—
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graphic, electronic, or mechanical, includinglphotocopying, recording, taping, web distribution or
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
information storag e andlretrieval systems—withoutlthe written permission ofthe publisher
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ii
, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
Study Material
TABLEOFCONTENTS z/f z/f
Part 1 Introduction
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Chapter 1 Ten Principleslof Economics
zz/f zz/f zz/f zz/f 1-1
Chapter 2 ThinkinglLikeanlEconomist
z/f zz/f 2-1
Chapter 3 Interdependenceandlthe Gainsfrom Trade
zz/f zz/f zz/f zz/f 3-1
Part 2lSupplyAnd Demand: How MarketslWork
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Chapter4 The Market Forcesof Supplyand Demand
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Part 3 ThelDatalof Macroeconomics
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Chapter5 Measuringa Nation‘s Income
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Chapter 6 MeasuringthelCost of Living
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Part 4 ThelReal Economyinthe LonglRun
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Chapter 7 Productionand Growth
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Chapter 8 Saving, Investment, andlthelFinancial System
zz/f zz/f zz/f zz/f zz/f 8-1
Chapter 9 Unemployment and Its Natural Rate
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Part 5 MoneyAndlPricesinthe Long Run
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Chapter10TheMonetarySystem z/f z/f z/f z/f 10-1
Chapter 11 MoneyGrowthand Inflation
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Part 6 ThelMacroeconomics of Open Economies
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Chapter12 Open-EconomyMacroeconomics: BasiclConcepts
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Chapter 13 AMacroeconomiclTheoryofthe Small OpenlEconomy
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Part 7 Short-Run Economic Fluctuations
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Chapter 14 AggregatelDemandand AggregatelSupply
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Chapter15 The Influenceof Monetaryand Fiscal Policyon AggregatelDemand
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Chapter 16 The Short-RunlTradeofflbetween Inflation andlUnemployment
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Part 8 Final Thoughts
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Chapter17 Five Debatesover Macroeconomic Policy
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iii
, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
Study Material
PREFACE
In most post-secondarycourses, a largepercentageofstudentassessmentisbasedonmultiple-
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choiceltesting. Manyinstructorsusemultiple-
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choicelreluctantly, believingthatlit is amethodologybest usedfortestinglwhatastudent zz/f zz/f zz/f zz/f
remember s ratherthanwhatshelorhelhas learned.
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Nelson Education Ltd. understandsthatagoodqualitymultiple-
zz/f zz/f zz/f
choiceltestlbanklcanprovidelthelmeanstomeasurelhigher-
zz/f z/f
level thinking skills aslwell as recall. Recognizingtheimportanceofmultiple-
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choiceltestinginltoday‘s classroom, we havecreated NETA—
zz/f zz/f zz/f zz/f zz/f
theNelson Education TeachinglAdvantageprogram—
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tolensurethelvalueofourhighqualitytestbanks.
zz/f
The NETAprogramwascreatedinpartnershipwith David DiBattista, a 3MNational
zz/f zz/f zz/f zz/f zz/f
TeachinglFell ow, professorofpsychology at Brock University,
zz/f zz/f zz/f zz/f zz/f zz/f
andresearcherintheareaofmultiple-
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choice testing. NETAensuresthatsubject-
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construction, anddevelopingmultiple-
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choicetestquestionsthat―get beyondremembering‖ toassesshigher-levelthinking. z z / f z z / f
AlllNETAtestbankslinclude David DiBattista‘slguidelfor instructors, ―Multiple zz/f zz/f zz/f zz/f
ChoicelTests:Get
zz/f ting Beyond Remembering.‖ Thisguidehasbeendesignedtoassist zz/f zz/f zz/f zz/f
youinusing Nelson test bankst oachieve yourdesiredoutcomesin yourcourse.
zz/f zz/f zz/f zz/f zz/f zz/f zz/f
The Test Banklfor Principles
zz/f of Macroeconomics, SixthlCanadian zz/f zz/f zz/f zz/f zz/f
EditionhasbeenrevisedforCan adianstudentsby Constantin Colonescu, MacEwan University.
zz/f zz/f zz/f zz/f zz/f zz/f
Themultiple-
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choicelquestionswerewritten andeditedtoconformto NETAguidelines, zz/f zz/f
whichemphasizethelde velopmentofhigher-
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orderthinkingandltheleffectiveconstructionofquestions. NETAprinciplesofquestionlconstructi zz/f
onhelpeliminatelambiguity, arguableanswers, guesswork, andunconsciouscuestotest-
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savvystudents, resultinginatestthataccuratelyreflectslstudentunderstanding. The Test zz/f zz/f zz/f
Bankoffe rs over 3510 questions, includinglabout 2822 multiplechoice, about 362
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
true/false, about 162 probl ems, andlaboutl164 shortanswerquestions.
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In additiontoprovidingavarietyofquestionslrelatedtoleach
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balancedtestslbythemeasureofcourselout
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z z / f z z / f
ANS: Thelcorrectanswer. (Suggestedanswersareprovidedforthelshortanswerquestions.)
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PTS: Thelnumberofpoints an instructor can assignfor each question. Thedefault is 1point
z/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
.
iv
Study Material
NETAASSESSMENT
Test Bank l
toaccompany
TestBankpreparedbyl
/zf
ConstantinlColonescu
z z / f
zz/fMacEwan University
z/f
, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
Study Material
NETAAssessment:Test Bank toaccompany PrinciplesofMacroeconomics, z/f l l z/f /zf
SixthCanadianEdition z/f
ByN. Gregory Mankiw/Ronald D.lKneebone/ Kenneth J.lMcKenzie
z/f z/f z/f z/f z/f z/f z/f z/f
Test Bankpreparedby Constantin Colonescu, MacEwan University
zz/f zz/f zz/f zz/f zz/f
NETAcopyeditor: Frances Robinson zz/f zz/f
AvailableonlInstructor‘s ResourcelCD ISBN. 0-17-655440-8 zz/f zz/f zz/f
COPYRIGHT ©2014lby Nelson Education Ltd. Nelsonlis a registered trademark used hereinlunder licence.
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
Allrightsl
zz/f reserved. z z / f
For more informationlcontact Nelson, 1120 Birchmount Road, Toronto, Ontario M1Kl5G4. Or you canlvisit
zz/f zz/f zz/f zz/f zz/f zz/f z/f zz/f zz/f zz/f zz/f zz/f
ourInter net sitelat www.nelson.com.
zz/f zz/f zz/f zz/f
ALLlRIGHTS RESERVED. No partofthis work covered bythe copyright hereon maybe reproduced or usedlinany
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
fo rmlorlbylany means—
zz/f zz/f zz/f
graphic, electronic, or mechanical, includinglphotocopying, recording, taping, web distribution or
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
information storag e andlretrieval systems—withoutlthe written permission ofthe publisher
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
ii
, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
Study Material
TABLEOFCONTENTS z/f z/f
Part 1 Introduction
z/f zz/f
Chapter 1 Ten Principleslof Economics
zz/f zz/f zz/f zz/f 1-1
Chapter 2 ThinkinglLikeanlEconomist
z/f zz/f 2-1
Chapter 3 Interdependenceandlthe Gainsfrom Trade
zz/f zz/f zz/f zz/f 3-1
Part 2lSupplyAnd Demand: How MarketslWork
z/f z/f z/f z/f
Chapter4 The Market Forcesof Supplyand Demand
z/f zz/f z/f zz/f zz/f zz/f 4-1
Part 3 ThelDatalof Macroeconomics
zz/f zz/f z/f
Chapter5 Measuringa Nation‘s Income
z/f z/f z/f zz/f 5-1
Chapter 6 MeasuringthelCost of Living
z/f z/f zz/f zz/f 6-1
Part 4 ThelReal Economyinthe LonglRun
zz/f zz/f zz/f zz/f
Chapter 7 Productionand Growth
z/f zz/f zz/f 7-1
Chapter 8 Saving, Investment, andlthelFinancial System
zz/f zz/f zz/f zz/f zz/f 8-1
Chapter 9 Unemployment and Its Natural Rate
z/f zz/f zz/f zz/f zz/f zz/f 9-1
Part 5 MoneyAndlPricesinthe Long Run
zz/f zz/f zz/f zz/f
Chapter10TheMonetarySystem z/f z/f z/f z/f 10-1
Chapter 11 MoneyGrowthand Inflation
zz/f zz/f zz/f 11-1
Part 6 ThelMacroeconomics of Open Economies
zz/f zz/f zz/f zz/f zz/f
Chapter12 Open-EconomyMacroeconomics: BasiclConcepts
z/f zz/f zz/f 12-1
Chapter 13 AMacroeconomiclTheoryofthe Small OpenlEconomy
zz/f zz/f zz/f zz/f 13-1
Part 7 Short-Run Economic Fluctuations
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Chapter 14 AggregatelDemandand AggregatelSupply
z/f zz/f zz/f 14-1
Chapter15 The Influenceof Monetaryand Fiscal Policyon AggregatelDemand
z/f zz/f zz/f zz/f zz/f zz/f zz/f 15-1
Chapter 16 The Short-RunlTradeofflbetween Inflation andlUnemployment
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Part 8 Final Thoughts
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Chapter17 Five Debatesover Macroeconomic Policy
z/f z/f z/f z/f zz/f 17-1
iii
, Stuvia.com zz/f- zz/fThe zz/fMarketplace zz/fto zz/fBuy zz/fand zz/fSell zz/fyour
Study Material
PREFACE
In most post-secondarycourses, a largepercentageofstudentassessmentisbasedonmultiple-
zz/f zz/f zz/f zz/f
choiceltesting. Manyinstructorsusemultiple-
zz/f z/f
choicelreluctantly, believingthatlit is amethodologybest usedfortestinglwhatastudent zz/f zz/f zz/f zz/f
remember s ratherthanwhatshelorhelhas learned.
zz/f zz/f zz/f zz/f
Nelson Education Ltd. understandsthatagoodqualitymultiple-
zz/f zz/f zz/f
choiceltestlbanklcanprovidelthelmeanstomeasurelhigher-
zz/f z/f
level thinking skills aslwell as recall. Recognizingtheimportanceofmultiple-
zz/f zz/f zz/f zz/f zz/f zz/f
choiceltestinginltoday‘s classroom, we havecreated NETA—
zz/f zz/f zz/f zz/f zz/f
theNelson Education TeachinglAdvantageprogram—
z/f z/f z/f
tolensurethelvalueofourhighqualitytestbanks.
zz/f
The NETAprogramwascreatedinpartnershipwith David DiBattista, a 3MNational
zz/f zz/f zz/f zz/f zz/f
TeachinglFell ow, professorofpsychology at Brock University,
zz/f zz/f zz/f zz/f zz/f zz/f
andresearcherintheareaofmultiple-
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choice testing. NETAensuresthatsubject-
zz/f zz/f
matterexpertswhoauthortestbankslhavelhadtraininginltwoareas: avoidinglcommon errorslin testl zz/f zz/f zz/f
construction, anddevelopingmultiple-
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choicetestquestionsthat―get beyondremembering‖ toassesshigher-levelthinking. z z / f z z / f
AlllNETAtestbankslinclude David DiBattista‘slguidelfor instructors, ―Multiple zz/f zz/f zz/f zz/f
ChoicelTests:Get
zz/f ting Beyond Remembering.‖ Thisguidehasbeendesignedtoassist zz/f zz/f zz/f zz/f
youinusing Nelson test bankst oachieve yourdesiredoutcomesin yourcourse.
zz/f zz/f zz/f zz/f zz/f zz/f zz/f
The Test Banklfor Principles
zz/f of Macroeconomics, SixthlCanadian zz/f zz/f zz/f zz/f zz/f
EditionhasbeenrevisedforCan adianstudentsby Constantin Colonescu, MacEwan University.
zz/f zz/f zz/f zz/f zz/f zz/f
Themultiple-
zz/f
choicelquestionswerewritten andeditedtoconformto NETAguidelines, zz/f zz/f
whichemphasizethelde velopmentofhigher-
zz/f zz/f
orderthinkingandltheleffectiveconstructionofquestions. NETAprinciplesofquestionlconstructi zz/f
onhelpeliminatelambiguity, arguableanswers, guesswork, andunconsciouscuestotest-
zz/f zz/f zz/f zz/f
savvystudents, resultinginatestthataccuratelyreflectslstudentunderstanding. The Test zz/f zz/f zz/f
Bankoffe rs over 3510 questions, includinglabout 2822 multiplechoice, about 362
zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
true/false, about 162 probl ems, andlaboutl164 shortanswerquestions.
zz/f zz/f zz/f zz/f zz/f zz/f zz/f
In additiontoprovidingavarietyofquestionslrelatedtoleach
zz/f chapterobjective, zz/f
thisltestlbanklalsol
zz/f employsalseriesofltagsthat can helpdesignleffective, z z / f zz/f zz/f
balancedtestslbythemeasureofcourselout
zz/f comes. zz/f
Allofthetagsareincludedwiththequestioninthetestbank. Thesetagslinclude:
z z / f z z / f
ANS: Thelcorrectanswer. (Suggestedanswersareprovidedforthelshortanswerquestions.)
zz/f zz/f
PTS: Thelnumberofpoints an instructor can assignfor each question. Thedefault is 1point
z/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f zz/f
.
iv