Test Bank For Principles of Macroeconomics, 6th Edition by N. Gregory Mankiw

NETAASSESSMENT j




TestBank j




toaccompany
j




Test Bankprepared by
j j j




j Constantin Colonescu j




MacEwan University
j j

,NETAAssessment: Test Banktoaccompany Principlesof Macroeconomics,
j j j j j j j j




SixthCanadian Edition j j




By N. Gregory Mankiw / Ronald D. Kneebone/ Kenneth J. McKenzie
j j j j j j j j j j j




Test Bankprepared byConstantin Colonescu, MacEwanUniversity
j j j j j j j




NETA copyeditor: FrancesRobinson
j j j j




Available onInstructor’s Resource CD ISBN. 0-17-655440-8
j j j j j j j




COPYRIGHT©2014byNelsonEducationLtd.Nelsonisaregisteredtrademarkusedhereinunderlicence.All rights
j j j j j j j j j j j j j j j j




reserved.
j




FormoreinformationcontactNelson,1120BirchmountRoad,Toronto,Ontario M1K 5G4.Oryoucanvisitour Internet
j j j j j j j j j j j j j j j j j




siteatwww.nelson.com.
j j j




ALLRIGHTSRESERVED.Nopartofthisworkcoveredbythecopyrighthereon maybereproducedorusedin anyformorby
j j j j j j j j j j j j j j j j j j j j j j




anymeans—graphic,electronic,ormechanical,includingphotocopying,recording,taping,web distributionor
j j j j j j j j j j j j




informationstorageandretrievalsystems—withoutthewrittenpermissionofthepublisher
j j j j j j j j j j j




ii

, TABLEOFCONTENTS j j




Part 1 Introduction
j j




Chapter1 Ten Principles ofEconomics
j j j j j 1-1
Chapter2 Thinking Like an Economist
j j j j j 2-1
Chapter3 Interdependence and the Gains from Trade
j j j j j j j 3-1

Part 2 SupplyAnd Demand: How Markets Work
j j j j j j j




Chapter4 TheMarket Forces of Supplyand Demand
j j j j j j j j 4-1

Part 3 TheData of Macroeconomics
j j j j j




Chapter5 Measuring aNation’s Income
j j j j j 5-1
Chapter6 Measuringthe Cost of Living
j j j j j j 6-1

Part 4 TheReal Economyin the LongRun
j j j j j j j j




Chapter7 Production andGrowth
j j j j 7-1
Chapter8 Saving, Investment, and the Financial System
j j j j j j j 8-1
Chapter9 Unemployment and ItsNatural Rate
j j j j j j 9-1

Part 5MoneyAnd Prices in the LongRun
j j j j j j j j




Chapter10 TheMonetarySystem
j j j j 10-1
Chapter11 MoneyGrowth and Inflation
j j j j j 11-1

Part 6 TheMacroeconomics of Open Economies
j j j j j j




Chapter12 Open-EconomyMacroeconomics: Basic Concepts
j j j j j 12-1
Chapter13 A Macroeconomic Theoryof theSmall Open Economy
j j j j j j j j j 13-1

Part 7Short-Run Economic Fluctuations
j j j j




Chapter14 Aggregate Demand and Aggregate Supply
j j j j j j 14-1
Chapter15 The Influence of Monetaryand Fiscal Policyon Aggregate Demand
j j j j j j j j j j j 15-1
Chapter16 TheShort-Run Tradeoff between Inflation and Unemployment
j j j j j j j j 16-1

Part 8Final Thoughts
j j j




Chapter17 Five Debatesover Macroeconomic Policy
j j j j j j 17-1




iii

, PREFACE




In most post-secondarycourses, a largepercentageof student assessment is based on multiple-
j j j j j j j j j j j j j




jchoicetesting.Manyinstructors use multiple-choice reluctantly, believingthat it is a methodology
j j j j j j j j j j j j




best used for testingwhat a student remembers rather than what she orhe has learned.
j j j j j j j j j j j j j j j j




Nelson Education Ltd. understands that a good qualitymultiple-choicetest bank can provide the
j j j j j j j j j j j j j




meansto measurehigher-level thinking skillsaswell as recall. Recognizingthe importance of
j j j j j j j j j j j j j j




multiple-choicetestingin today’s classroom, wehave created NETA—the Nelson Education
j j j j j j j j j j j




TeachingAdvantageprogram—to ensure the valueof our high qualitytest banks.
j j j j j j j j j j j j




TheNETAprogram was created in partnership with David DiBattista, a3M National Teaching
j j j j j j j j j j j j j




jFellow,professor of psychologyat Brock University, and researcher in the areaof multiple- choice
j j j j j j j j j j j j j j




testing.NETA ensures that subject-matter experts who author test banks havehad trainingin two
j j j j j j j j j j j j j j j




areas: avoidingcommon errors in test construction, and developingmultiple- choicetest questions
j j j j j j j j j j j j j




that “get beyond remembering”to assesshigher-level thinking.
j j j j j j j j




All NETAtest banks include David DiBattista’s guide forinstructors, “Multiple Choice Tests:
j j j j j j j j j j j j




jGetting Beyond Remembering.” This guide has been designed to assist you in usingNelson test
j j j j j j j j j j j j j j




banks to achieve yourdesired outcomes in yourcourse.
j j j j j j j j j




TheTest Bank forPrinciples ofMacroeconomics, Sixth Canadian Editionhasbeen revised for
j j j j j j j j j j j j j




Canadian students byConstantin Colonescu, MacEwan University. Themultiple-choice
j j j j j j j j j




jquestionswerewritten and edited to conform to NETA guidelines, which emphasizethe j j j j j j j j j j j j




jdevelopment of higher-order thinkingand theeffective construction of questions. NETA j j j j j j j j j j




jprinciples of question construction help eliminate ambiguity,arguable answers, guesswork, and j j j j j j j j j j




unconscious cues to test-savvystudents, resultingin a test that accuratelyreflects student
j j j j j j j j j j j j j




junderstanding. TheTest Bankoffers over 3510 questions, includingabout 2822 multiple choice, j j j j j j j j j j j j




about 362 true/false, about 162 problems, and about 164 short answerquestions.
j j j j j j j j j j j j




In addition to providinga varietyof questions related to each chapter objective, this test bank also
j j j j j j j j j j j j j j j j




employs a series of tagsthat can help design effective, balanced tests bythe measureof course
j j j j j j j j j j j j j j j j j




outcomes. All of thetags are included with the question in the test bank. Thesetags include:
j j j j j j j j j j j j j j j j j




• ANS: Thecorrect answer. (Suggested answers are provided forthe short answer questions.)
j j j j j j j j j j j j




• PTS: The numberof points an instructor can assign for each question. The default is 1
j j j j j j j j j j j j j j j




point. j




4