Test Bank For Principles of Macroeconomics, 6th Edition by N. Gregory Mankiw NEWEST UPDATE 2025/2026.

NETAASSESSMENT
f



Test Bank f


to accompany
f




Test fBank fprepared
fby f Constantin

Colonescu f MacEwan
f

fUniversity

,NETA fAssessment: fTest fBank fto faccompany fPrinciples fof fMacroeconomics,
Sixth fCanadian fEdition

By fN. fGregory fMankiw f/ fRonald fD. fKneebone f/ fKenneth fJ. fMcKenzie



Test fBank fprepared fby fConstantin fColonescu, fMacEwan fUniversity



NETA fcopy feditor: fFrances fRobinson


Available fon fInstructor’s fResource fCD fISBN f. f0-17-655440-8

COPYRIGHT f©2014 fby fNelson fEducation fLtd. fNelson fis fa fregistered ftrademark fused fherein funder flicence. fAll
f rights freserved.



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ALL fRIGHTS fRESERVED. fNo fpart fof fthis fwork fcovered fby fthe fcopyright fhereon fmay fbe freproduced for fused fin
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f distribution for finformation fstorage fand fretrieval fsystems—without fthe fwritten fpermission fof fthe fpublisher




ii

, TABLE fOF fCONTENTS

Part f1 fIntroduction
Chapter f1 fTen fPrinciples fof fEconomics 1-1
Chapter f2 fThinking fLike fan fEconomist 2-1
Chapter f3 fInterdependence fand fthe fGains ffrom fTrade 3-1

Part f2 fSupply fAnd fDemand: fHow fMarkets fWork
Chapter f4 fThe fMarket fForces fof fSupply fand fDemand 4-1

Part f3 fThe fData fof fMacroeconomics
Chapter f5 fMeasuring fa fNation’s fIncome 5-1
Chapter f6 fMeasuring fthe fCost fof fLiving 6-1

Part f4 fThe fReal fEconomy fin fthe fLong fRun
Chapter f7 fProduction fand fGrowth 7-1
Chapter f8 fSaving, fInvestment, fand fthe fFinancial fSystem 8-1
Chapter f9 fUnemployment fand fIts fNatural fRate 9-1

Part f5 fMoney fAnd fPrices fin fthe fLong fRun
Chapter f10 fThe fMonetary fSystem 10-1
Chapter f11 fMoney fGrowth fand fInflation 11-1

Part f6 fThe fMacroeconomics fof fOpen fEconomies
Chapter f12 fOpen-Economy fMacroeconomics: fBasic fConcepts 12-1
Chapter f13 fA fMacroeconomic fTheory fof fthe fSmall fOpen fEconomy 13-1

Part f7 fShort-Run fEconomic fFluctuations
Chapter f14 fAggregate fDemand fand fAggregate fSupply 14-1
Chapter f15 fThe fInfluence fof fMonetary fand fFiscal fPolicy fon fAggregate fDemand 15-1
Chapter f16 fThe fShort-Run fTradeoff fbetween fInflation fand fUnemployment 16-1

Part f8 fFinal fThoughts
Chapter f17 fFive fDebates fover fMacroeconomic fPolicy 17-1




iii

, PREFACE




In fmost fpost-secondary fcourses, fa flarge fpercentage fof fstudent fassessment fis fbased fon
fmultiple- f choice ftesting. fMany finstructors fuse fmultiple-choice freluctantly, fbelieving fthat fit fis

fa f methodology fbest fused ffor ftesting fwhat fa fstudent fremembers frather fthan fwhat fshe for fhe

fhas f learned.



Nelson fEducation fLtd. funderstands fthat fa fgood fquality fmultiple-choice ftest fbank fcan
fprovide f the fmeans fto fmeasure fhigher-level fthinking fskills fas fwell fas frecall. fRecognizing

fthe f importance fof fmultiple-choice ftesting fin ftoday’s fclassroom, fwe fhave fcreated fNETA—

the f Nelson fEducation fTeaching fAdvantage fprogram—to fensure fthe fvalue fof four fhigh
fquality ftest f banks.



The fNETA fprogram fwas fcreated fin fpartnership fwith fDavid fDiBattista, fa f3M fNational fTeaching
f Fellow, fprofessor fof fpsychology fat f Brock fUniversity, fand fresearcher fin fthe farea fof fmultiple-

f choice ftesting. fNETA fensures fthat fsubject-matter fexperts fwho fauthor ftest fbanks fhave fhad

f training fin ftwo fareas: favoiding fcommon ferrors fin ftest fconstruction, fand fdeveloping fmultiple-

f choice ftest fquestions fthat f“get fbeyond fremembering” fto fassess fhigher-level fthinking.



All fNETA ftest fbanks finclude fDavid fDiBattista’s fguide ffor finstructors, f“Multiple fChoice fTests:
f Getting fBeyond fRemembering.” fThis fguide fhas fbeen fdesigned fto fassist fyou fin fusing fNelson

f test fbanks fto fachieve fyour fdesired foutcomes fin f your fcourse.



The fTest fBank ffor fPrinciples fof fMacroeconomics, fSixth fCanadian fEdition fhas fbeen frevised
ffor f Canadian fstudents fby fConstantin fColonescu, fMacEwan fUniversity. fThe fmultiple-choice

f questions fwere fwritten fand fedited fto fconform fto fNETA fguidelines, fwhich femphasize fthe

f development fof fhigher-order fthinking fand fthe feffective fconstruction fof fquestions. fNETA

f principles fof fquestion fconstruction fhelp feliminate fambiguity, farguable fanswers, fguesswork,

f and funconscious fcues fto ftest-savvy fstudents, fresulting fin fa ftest fthat faccurately freflects

fstudent f understanding. fThe fTest fBank foffers fover f3510 fquestions, fincluding fabout f2822

fmultiple f choice, fabout f362 ftrue/false, fabout f162 fproblems, fand fabout f164 fshort fanswer

fquestions.




In faddition fto fproviding fa fvariety fof fquestions frelated fto feach fchapter fobjective, fthis ftest
fbank f also femploys fa fseries fof ftags fthat fcan fhelp fdesign feffective, fbalanced ftests fby fthe

fmeasure fof f course foutcomes. fAll fof fthe ftags fare fincluded fwith fthe fquestion fin fthe ftest

fbank. fThese ftags f include:

 ANS: fThe fcorrect fanswer. f(Suggested fanswers fare fprovided ffor fthe fshort fanswer
fquestions.)


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