NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared b
ny ny ny
y Constantin Colonesc
ny ny
u MacEwan University
ny ny
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
ny ny ny ny ny ny ny ny
Sixth Canadian Edition ny ny
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
ny ny ny ny ny ny ny ny ny ny ny
Test Bank prepared by Constantin Colonescu, MacEwan University
ny ny ny ny ny ny ny
NETA copy editor: Frances Robinson
ny ny ny ny
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
ny ny ny ny ny ny ny
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
rights reserved.
n y ny
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit
ny ny ny ny ny ny ny ny ny n y ny ny ny ny ny ny
our Internet site at www.nelson.com.
n y ny ny ny
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
n yany form or by any means—
ny ny ny ny ny
graphic, electronic, or mechanical, including photocopying, recording, taping, web
ny ny ny distribution or informati ny ny ny ny ny n y ny ny
on storage and retrieval systems—without the written permission of the publisher
ny ny ny ny ny ny ny ny ny ny
ii
, TABLE OF CONTENTS ny ny
Part 1 Introduction
ny ny
Chapter 1 Ten Principles of Economics
ny ny ny ny ny 1-1
Chapter 2 Thinking Like an Economist
ny ny ny ny ny 2-1
Chapter 3 Interdependence and the Gains from Trade
ny ny ny ny ny ny ny 3-1
Part 2 Supply And Demand: How Markets Work
ny ny ny ny ny ny ny
Chapter 4 The Market Forces of Supply and Demand
ny ny ny ny ny ny ny ny 4-1
Part 3 The Data of Macroeconomics
ny ny ny ny ny
Chapter 5 Measuring a Nation’s Income
ny ny ny ny ny 5-1
Chapter 6 Measuring the Cost of Living
ny ny ny ny ny ny 6-1
Part 4 The Real Economy in the Long Run
ny ny ny ny ny ny ny ny
Chapter 7 Production and Growth
ny ny ny ny 7-1
Chapter 8 Saving, Investment, and the Financial System
ny ny ny ny ny ny ny 8-1
Chapter 9 Unemployment and Its Natural Rate
ny ny ny ny ny ny 9-1
Part 5 Money And Prices in the Long Run
ny ny ny ny ny ny ny ny
Chapter 10 The Monetary System
ny ny ny ny 10-1
Chapter 11 Money Growth and Inflation
ny ny ny ny ny 11-1
Part 6 The Macroeconomics of Open Economies
ny ny ny ny ny ny
Chapter 12 Open-Economy Macroeconomics: Basic Concepts
ny ny ny ny ny 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
ny ny ny ny ny ny ny ny ny 13-1
Part 7 Short-Run Economic Fluctuations
ny ny ny ny
Chapter 14 Aggregate Demand and Aggregate Supply
ny ny ny ny ny ny 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
ny ny ny ny ny ny ny ny ny ny ny 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
ny ny ny ny ny ny ny ny 16-1
Part 8 Final Thoughts
ny ny ny
Chapter 17 Five Debates over Macroeconomic Policy
ny ny ny ny ny ny 17-1
iii
, PREFACE
In most post-
ny ny
secondary courses, a large percentage of student assessment is based on multiple-
ny ny ny ny ny ny ny ny ny ny ny
choice testing. Many instructors use multiple-
n y ny ny ny ny ny
choice reluctantly, believing that it is a methodology best used for testing what a student
ny ny ny ny ny ny n y ny ny ny ny ny ny ny ny
remembers rather than what she or he has learned. ny ny ny ny ny ny ny n y
Nelson Education Ltd. understands that a good quality multiple-
ny ny ny ny ny ny ny ny
choice test bank can provide the means to measure higher-
ny ny ny ny n y ny ny ny ny
level thinking skills as well as recall. Recognizing the importance of multiple-
ny ny ny ny ny ny ny ny n y ny ny
choice testing in today’s classroom, we have created NETA—
ny ny ny ny ny ny ny ny
the Nelson Education Teaching Advantage program—
n y ny ny ny ny
to ensure the value of our high quality test banks.
ny ny ny ny ny ny ny ny n y
The NETA program was created in partnership with David DiBattista, a 3M National Teachin
ny ny ny ny ny ny ny ny ny ny ny ny ny
g Fellow, professor of psychology at Brock University, and researcher in the area of multip
n y ny ny ny ny ny ny ny ny ny ny ny ny ny
le- choice testing. NETA ensures that subject-
n y ny ny ny ny ny
matter experts who author test banks have had training in two areas: avoiding common e
ny ny ny ny ny ny ny n y ny ny ny ny ny ny
rrors in test construction, and developing multiple-
ny ny ny ny ny ny
choice test questions that “get beyond remembering” to assess higher-level thinking.
n y ny ny ny ny ny ny ny ny ny ny
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
ny ny ny ny ny ny ny ny ny ny ny ny
n Getting Beyond Remembering.” This guide has been designed to assist you in using Nel
y ny ny ny ny ny ny ny ny ny ny ny ny ny
son test banks to achieve your desired outcomes in your course.
n y ny ny ny ny ny ny ny ny ny
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised f
ny ny ny ny ny ny ny ny ny ny ny ny ny
or Canadian students by Constantin Colonescu, MacEwan University. The multiple-
n y ny ny ny ny ny ny ny ny
choice questions were written and edited to conform to NETA guidelines, which emphas
n y ny ny ny ny ny ny ny ny ny ny ny
ize the development of higher-
ny n y ny ny
order thinking and the effective construction of questions. NETA principles of question c
ny ny ny ny ny ny ny ny n y ny ny ny
onstruction help eliminate ambiguity, arguable answers, guesswork, and unconscious cue
ny ny ny ny ny ny n y ny ny
s to test-
ny ny
savvy students, resulting in a test that accurately reflects student understanding. The Tes
ny ny ny ny ny ny ny ny ny n y ny ny
t Bank offers over 3510 questions, including about 2822 multiple choice, about 362 true/
ny ny ny ny ny ny ny ny ny n y ny ny ny
false, about 162 problems, and about 164 short answer questions.
ny ny ny ny ny ny ny ny ny
In addition to providing a variety of questions related to each chapter objective, this test ba
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
nk also employs a series of tags that can help design effective, balanced tests by the mea
n y ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
4
Test Bank
to accompany
Test Bank prepared b
ny ny ny
y Constantin Colonesc
ny ny
u MacEwan University
ny ny
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
ny ny ny ny ny ny ny ny
Sixth Canadian Edition ny ny
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
ny ny ny ny ny ny ny ny ny ny ny
Test Bank prepared by Constantin Colonescu, MacEwan University
ny ny ny ny ny ny ny
NETA copy editor: Frances Robinson
ny ny ny ny
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
ny ny ny ny ny ny ny
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
rights reserved.
n y ny
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit
ny ny ny ny ny ny ny ny ny n y ny ny ny ny ny ny
our Internet site at www.nelson.com.
n y ny ny ny
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
n yany form or by any means—
ny ny ny ny ny
graphic, electronic, or mechanical, including photocopying, recording, taping, web
ny ny ny distribution or informati ny ny ny ny ny n y ny ny
on storage and retrieval systems—without the written permission of the publisher
ny ny ny ny ny ny ny ny ny ny
ii
, TABLE OF CONTENTS ny ny
Part 1 Introduction
ny ny
Chapter 1 Ten Principles of Economics
ny ny ny ny ny 1-1
Chapter 2 Thinking Like an Economist
ny ny ny ny ny 2-1
Chapter 3 Interdependence and the Gains from Trade
ny ny ny ny ny ny ny 3-1
Part 2 Supply And Demand: How Markets Work
ny ny ny ny ny ny ny
Chapter 4 The Market Forces of Supply and Demand
ny ny ny ny ny ny ny ny 4-1
Part 3 The Data of Macroeconomics
ny ny ny ny ny
Chapter 5 Measuring a Nation’s Income
ny ny ny ny ny 5-1
Chapter 6 Measuring the Cost of Living
ny ny ny ny ny ny 6-1
Part 4 The Real Economy in the Long Run
ny ny ny ny ny ny ny ny
Chapter 7 Production and Growth
ny ny ny ny 7-1
Chapter 8 Saving, Investment, and the Financial System
ny ny ny ny ny ny ny 8-1
Chapter 9 Unemployment and Its Natural Rate
ny ny ny ny ny ny 9-1
Part 5 Money And Prices in the Long Run
ny ny ny ny ny ny ny ny
Chapter 10 The Monetary System
ny ny ny ny 10-1
Chapter 11 Money Growth and Inflation
ny ny ny ny ny 11-1
Part 6 The Macroeconomics of Open Economies
ny ny ny ny ny ny
Chapter 12 Open-Economy Macroeconomics: Basic Concepts
ny ny ny ny ny 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy
ny ny ny ny ny ny ny ny ny 13-1
Part 7 Short-Run Economic Fluctuations
ny ny ny ny
Chapter 14 Aggregate Demand and Aggregate Supply
ny ny ny ny ny ny 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand
ny ny ny ny ny ny ny ny ny ny ny 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment
ny ny ny ny ny ny ny ny 16-1
Part 8 Final Thoughts
ny ny ny
Chapter 17 Five Debates over Macroeconomic Policy
ny ny ny ny ny ny 17-1
iii
, PREFACE
In most post-
ny ny
secondary courses, a large percentage of student assessment is based on multiple-
ny ny ny ny ny ny ny ny ny ny ny
choice testing. Many instructors use multiple-
n y ny ny ny ny ny
choice reluctantly, believing that it is a methodology best used for testing what a student
ny ny ny ny ny ny n y ny ny ny ny ny ny ny ny
remembers rather than what she or he has learned. ny ny ny ny ny ny ny n y
Nelson Education Ltd. understands that a good quality multiple-
ny ny ny ny ny ny ny ny
choice test bank can provide the means to measure higher-
ny ny ny ny n y ny ny ny ny
level thinking skills as well as recall. Recognizing the importance of multiple-
ny ny ny ny ny ny ny ny n y ny ny
choice testing in today’s classroom, we have created NETA—
ny ny ny ny ny ny ny ny
the Nelson Education Teaching Advantage program—
n y ny ny ny ny
to ensure the value of our high quality test banks.
ny ny ny ny ny ny ny ny n y
The NETA program was created in partnership with David DiBattista, a 3M National Teachin
ny ny ny ny ny ny ny ny ny ny ny ny ny
g Fellow, professor of psychology at Brock University, and researcher in the area of multip
n y ny ny ny ny ny ny ny ny ny ny ny ny ny
le- choice testing. NETA ensures that subject-
n y ny ny ny ny ny
matter experts who author test banks have had training in two areas: avoiding common e
ny ny ny ny ny ny ny n y ny ny ny ny ny ny
rrors in test construction, and developing multiple-
ny ny ny ny ny ny
choice test questions that “get beyond remembering” to assess higher-level thinking.
n y ny ny ny ny ny ny ny ny ny ny
All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests:
ny ny ny ny ny ny ny ny ny ny ny ny
n Getting Beyond Remembering.” This guide has been designed to assist you in using Nel
y ny ny ny ny ny ny ny ny ny ny ny ny ny
son test banks to achieve your desired outcomes in your course.
n y ny ny ny ny ny ny ny ny ny
The Test Bank for Principles of Macroeconomics, Sixth Canadian Edition has been revised f
ny ny ny ny ny ny ny ny ny ny ny ny ny
or Canadian students by Constantin Colonescu, MacEwan University. The multiple-
n y ny ny ny ny ny ny ny ny
choice questions were written and edited to conform to NETA guidelines, which emphas
n y ny ny ny ny ny ny ny ny ny ny ny
ize the development of higher-
ny n y ny ny
order thinking and the effective construction of questions. NETA principles of question c
ny ny ny ny ny ny ny ny n y ny ny ny
onstruction help eliminate ambiguity, arguable answers, guesswork, and unconscious cue
ny ny ny ny ny ny n y ny ny
s to test-
ny ny
savvy students, resulting in a test that accurately reflects student understanding. The Tes
ny ny ny ny ny ny ny ny ny n y ny ny
t Bank offers over 3510 questions, including about 2822 multiple choice, about 362 true/
ny ny ny ny ny ny ny ny ny n y ny ny ny
false, about 162 problems, and about 164 short answer questions.
ny ny ny ny ny ny ny ny ny
In addition to providing a variety of questions related to each chapter objective, this test ba
ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
nk also employs a series of tags that can help design effective, balanced tests by the mea
n y ny ny ny ny ny ny ny ny ny ny ny ny ny ny ny
4
