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

NETA ASSESSMENT
G




Test Bank g



to accompany
g




Test gBank gprepared gby
Constantin gColonescu
g

MacEwan gUniversity
g

,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
g g g g g g g g


Sixth Canadian Edition
g g




By gN. gGregory gMankiw g/ gRonald gD. gKneebone g/ gKenneth gJ. gMcKenzie



Test gBank gprepared gby gConstantin gColonescu, gMacEwan gUniversity



NETA gcopy geditor: gFrances gRobinson


Available gon gInstructor’s gResource gCD gISBN g. g0-17-655440-8

COPYRIGHT g©2014 gby gNelson gEducation gLtd. gNelson gis ga gregistered gtrademark gused gherein gunder glicence.
gAll grights greserved.




For gmore ginformation gcontact gNelson, g1120 gBirchmount gRoad, gToronto, gOntario g M1K g5G4. gOr gyou gcan gvisit
gour gInternet gsite gat gwww.nelson.com.



ALL gRIGHTS gRESERVED. gNo gpart gof gthis gwork gcovered gby gthe gcopyright ghereon gmay gbe greproduced gor
gused gin gany gform gor gby gany gmeans—graphic, gelectronic, gor gmechanical, gincluding gphotocopying, grecording,

gtaping, gweb gdistribution gor ginformation gstorage gand gretrieval gsystems—without gthe gwritten gpermission gof gthe

gpublisher




ii

, TABLE OF CONTENTS
g g




Part g1 gIntroduction
Chapter g1 gTen gPrinciples gof gEconomics 1-1
Chapter g2 gThinking gLike gan gEconomist 2-1
Chapter g3 gInterdependence gand gthe gGains gfrom gTrade 3-1

Part g2 gSupply gAnd gDemand: gHow gMarkets gWork
Chapter g4 gThe gMarket gForces gof gSupply gand gDemand 4-1

Part g3 gThe gData gof gMacroeconomics
Chapter g5 gMeasuring ga gNation’s gIncome 5-1
Chapter g6 gMeasuring gthe gCost gof gLiving 6-1

Part g4 gThe gReal gEconomy gin gthe gLong gRun
Chapter g7 gProduction gand gGrowth 7-1
Chapter g8 gSaving, gInvestment, gand gthe gFinancial gSystem 8-1
Chapter g9 gUnemployment gand gIts gNatural gRate 9-1

Part g5 gMoney gAnd gPrices gin gthe gLong gRun
Chapter g10 gThe gMonetary gSystem 10-1
Chapter g11 gMoney gGrowth gand gInflation 11-1

Part g6 gThe gMacroeconomics gof gOpen gEconomies
Chapter g12 gOpen-Economy gMacroeconomics: gBasic gConcepts 12-1
Chapter g13 gA gMacroeconomic gTheory gof gthe gSmall gOpen gEconomy 13-1

Part g7 gShort-Run gEconomic gFluctuations
Chapter g14 gAggregate gDemand gand gAggregate gSupply 14-1
Chapter g15 gThe gInfluence gof gMonetary gand gFiscal gPolicy gon gAggregate gDemand 15-1
Chapter g16 gThe gShort-Run gTradeoff gbetween gInflation gand gUnemployment 16-1

Part g8 gFinal gThoughts
Chapter g17 gFive gDebates gover gMacroeconomic gPolicy 17-1




iii

, PREFACE




In gmost gpost-secondary gcourses, ga glarge gpercentage gof gstudent gassessment gis gbased gon
gmultiple- gchoice gtesting. gMany ginstructors guse gmultiple-choice greluctantly, gbelieving gthat git

gis ga gmethodology gbest gused gfor gtesting gwhat ga gstudent gremembers grather gthan gwhat gshe gor ghe

ghas glearned.




Nelson gEducation gLtd. gunderstands gthat ga ggood gquality gmultiple-choice gtest gbank gcan gprovide
gthe gmeans gto gmeasure ghigher-level gthinking gskills gas gwell gas grecall. gRecognizing gthe

gimportance gof gmultiple-choice gtesting gin gtoday’s gclassroom, gwe ghave gcreated gNETA—the

gNelson gEducation gTeaching gAdvantage gprogram—to gensure gthe gvalue gof gour ghigh gquality

gtest gbanks.




The gNETA gprogram gwas gcreated gin gpartnership gwith gDavid gDiBattista, ga g3M gNational gTeaching
gFellow, gprofessor gof gpsychology gat gBrock gUniversity, gand gresearcher gin gthe garea gof gmultiple-

gchoice gtesting. gNETA gensures gthat gsubject-matter gexperts gwho gauthor gtest gbanks ghave ghad

gtraining gin gtwo gareas: gavoiding gcommon gerrors gin gtest gconstruction, gand gdeveloping gmultiple-

gchoice gtest gquestions gthat g“get gbeyond gremembering” gto gassess ghigher-level gthinking.




All gNETA gtest gbanks ginclude gDavid gDiBattista’s gguide gfor ginstructors, g“Multiple gChoice
gTests: gGetting gBeyond gRemembering.” gThis gguide ghas gbeen gdesigned gto gassist gyou gin gusing

gNelson gtest gbanks gto gachieve gyour gdesired goutcomes gin gyour gcourse.




The gTest gBank gfor gPrinciples gof gMacroeconomics, gSixth gCanadian gEdition ghas gbeen grevised
gfor gCanadian gstudents gby gConstantin gColonescu, gMacEwan gUniversity. gThe gmultiple-choice

gquestions gwere gwritten gand gedited gto gconform gto gNETA gguidelines, gwhich gemphasize gthe

gdevelopment gof ghigher-order gthinking gand gthe geffective gconstruction gof gquestions. gNETA

gprinciples gof gquestion gconstruction ghelp geliminate gambiguity, garguable ganswers, gguesswork,

gand gunconscious gcues gto gtest-savvy gstudents, gresulting gin ga gtest gthat gaccurately greflects

gstudent gunderstanding. gThe gTest gBank goffers gover g3510 gquestions, gincluding gabout g2822

gmultiple gchoice, gabout g362 gtrue/false, gabout g162 gproblems, gand gabout g164 gshort ganswer

gquestions.




In gaddition gto gproviding ga gvariety gof gquestions grelated gto geach gchapter gobjective, gthis gtest gbank
galso gemploys ga gseries gof gtags gthat gcan ghelp gdesign geffective, gbalanced gtests gby gthe gmeasure

gof gcourse goutcomes. gAll gof gthe gtags gare gincluded gwith gthe gquestion gin gthe gtest gbank. gThese

gtags ginclude:

• ANS: gThe gcorrect ganswer. g(Suggested ganswers gare gprovided gfor gthe gshort ganswer gquestions.)
• PTS: gThe gnumber gof gpoints gan ginstructor gcan gassign gfor geach gquestion. gThe gdefault gis
g1 gpoint.




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