NETA ASSESSMENT
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
TestkoBankkopreparedkobykoConstantinkoColonescu,koMacEwankoUniversity
NETAkocopykoeditor:koFranceskoRobinson
AvailablekoonkoInstructor’skoResourcekoCDkoISBNko.ko0-17-655440-8
COPYRIGHTko©2014kobykoNelsonkoEducationkoLtd.koNelsonkoiskoakoregisteredkotrademarkkousedkohereinkounde
rkolicence.koAllk o rightskoreserved.
ForkomorekoinformationkocontactkoNelson,ko1120koBirchmountkoRoad,koToronto,koOntariok o M1Kko5G4.koOrkoy
oukocankovisitkoourk o Internetkositekoatkowww.nelson.com.
ALLkoRIGHTSkoRESERVED.koNokopartkoofkothiskoworkkocoveredkobykothekocopyrightkohereonkomaykobekoreprodu
cedkoorkousedkoink o anykoformkoorkobykoanykomeans—
graphic,koelectronic,koorkomechanical,koincludingkophotocopying,korecording,kotaping,kowebk o distributionkoork
oinformationkostoragekoandkoretrievalkosystems—withoutkothekowrittenkopermissionkoofkothekopublisher
ii
, TABLEkoOFkoCONTENTS
Partko1koIntroduction
Chapterko1koTenkoPrincipleskoofkoEconomics 1-1
Chapterko2koThinkingkoLikekoankoEconomist 2-1
Chapterko3koInterdependencekoandkothekoGainskofromkoTrade 3-1
Partko2koSupplykoAndkoDemand:koHowkoMarketskoWork
Chapterko4koThekoMarketkoForceskoofkoSupplykoandkoDemand 4-1
Partko3koThekoDatakoofkoMacroeconomics
Chapterko5koMeasuringkoakoNation’skoIncome 5-1
Chapterko6koMeasuringkothekoCostkoofkoLiving 6-1
Partko4koThekoRealkoEconomykoinkothekoLongkoRun
Chapterko7koProductionkoandkoGrowth 7-1
Chapterko8koSaving,koInvestment,koandkothekoFinancialkoSystem 8-1
Chapterko9koUnemploymentkoandkoItskoNaturalkoRate 9-1
Partko5koMoneykoAndkoPriceskoinkothekoLongkoRun
Chapterko10koThekoMonetarykoSystem 10-1
Chapterko11koMoneykoGrowthkoandkoInflation 11-1
Partko6koThekoMacroeconomicskoofkoOpenkoEconomies
Chapterko12koOpen-EconomykoMacroeconomics:koBasickoConcepts 12-1
Chapterko13koAkoMacroeconomickoTheorykoofkothekoSmallkoOpenkoEconomy 13-1
Partko7koShort-RunkoEconomickoFluctuations
Chapterko14koAggregatekoDemandkoandkoAggregatekoSupply 14-1
Chapterko15koThekoInfluencekoofkoMonetarykoandkoFiscalkoPolicykoonkoAggregatekoDemand
15-1
Chapterko16koThekoShort-RunkoTradeoffkobetweenkoInflationkoandkoUnemployment 16-1
Partko8koFinalkoThoughts
Chapterko17koFivekoDebateskooverkoMacroeconomickoPolicy 17-1
iii
, PREFACE
Inkomostkopost-
secondarykocourses,koakolargekopercentagekoofkostudentkoassessmentkoiskobasedkoonkomultiple-
k o choicekotesting.koManykoinstructorskousekomultiple-
choicekoreluctantly,kobelievingkothatkoitkoiskoak o methodologykobestkousedkoforkotestingkowhatko
akostudentkorememberskoratherkothankowhatkoshekoorkohekohask o learned.
NelsonkoEducationkoLtd.kounderstandskothatkoakogoodkoqualitykomultiple-
choicekotestkobankkocankoprovidek o thekomeanskotokomeasurekohigher-
levelkothinkingkoskillskoaskowellkoaskorecall.koRecognizingkothek o importancekoofkomultiple-
choicekotestingkoinkotoday’skoclassroom,kowekohavekocreatedkoNETA—
thek o NelsonkoEducationkoTeachingkoAdvantagekoprogram—
tokoensurekothekovaluekoofkoourkohighkoqualitykotestk o banks.
ThekoNETAkoprogramkowaskocreatedkoinkopartnershipkowithkoDavidkoDiBattista,koako3MkoNation
alkoTeachingk o Fellow,koprofessorkoofkopsychologykoatkoBrockkoUniversity,koandkoresearcherkoin
kothekoareakoofkomultiple-k o choicekotesting.koNETAkoensureskothatkosubject-
matterkoexpertskowhokoauthorkotestkobankskohavekohadk o trainingkoinkotwokoareas:koavoidingko
commonkoerrorskoinkotestkoconstruction,koandkodevelopingkomultiple-
k o choicekotestkoquestionskothatko“getkobeyondkoremembering”kotokoassesskohigher-
levelkothinking.
AllkoNETAkotestkobankskoincludekoDavidkoDiBattista’skoguidekoforkoinstructors,ko“MultiplekoCho
icekoTests:k o GettingkoBeyondkoRemembering.”koThiskoguidekohaskobeenkodesignedkotokoassis
tkoyoukoinkousingkoNelsonk o testkobankskotokoachievekoyourkodesiredkooutcomeskoinkoyourkoco
urse.
ThekoTestkoBankkoforkoPrincipleskoofkoMacroeconomics,koSixthkoCanadiankoEditionkohaskobeenk
orevisedkofork o CanadiankostudentskobykoConstantinkoColonescu,koMacEwankoUniversity.koThe
komultiple-
choicek o questionskowerekowrittenkoandkoeditedkotokoconformkotokoNETAkoguidelines,kowhich
koemphasizekothek o developmentkoofkohigher-
orderkothinkingkoandkothekoeffectivekoconstructionkoofkoquestions.koNETAk o principleskoofkoqu
estionkoconstructionkohelpkoeliminatekoambiguity,koarguablekoanswers,koguesswork,k o andkou
nconsciouskocueskotokotest-
savvykostudents,koresultingkoinkoakotestkothatkoaccuratelykoreflectskostudentk o understanding.k
oThekoTestkoBankkoofferskooverko3510koquestions,koincludingkoaboutko2822komultiplek o choice
,koaboutko362kotrue/false,koaboutko162koproblems,koandkoaboutko164koshortkoanswerkoquestio
ns.
4
Test Bank
to accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
TestkoBankkopreparedkobykoConstantinkoColonescu,koMacEwankoUniversity
NETAkocopykoeditor:koFranceskoRobinson
AvailablekoonkoInstructor’skoResourcekoCDkoISBNko.ko0-17-655440-8
COPYRIGHTko©2014kobykoNelsonkoEducationkoLtd.koNelsonkoiskoakoregisteredkotrademarkkousedkohereinkounde
rkolicence.koAllk o rightskoreserved.
ForkomorekoinformationkocontactkoNelson,ko1120koBirchmountkoRoad,koToronto,koOntariok o M1Kko5G4.koOrkoy
oukocankovisitkoourk o Internetkositekoatkowww.nelson.com.
ALLkoRIGHTSkoRESERVED.koNokopartkoofkothiskoworkkocoveredkobykothekocopyrightkohereonkomaykobekoreprodu
cedkoorkousedkoink o anykoformkoorkobykoanykomeans—
graphic,koelectronic,koorkomechanical,koincludingkophotocopying,korecording,kotaping,kowebk o distributionkoork
oinformationkostoragekoandkoretrievalkosystems—withoutkothekowrittenkopermissionkoofkothekopublisher
ii
, TABLEkoOFkoCONTENTS
Partko1koIntroduction
Chapterko1koTenkoPrincipleskoofkoEconomics 1-1
Chapterko2koThinkingkoLikekoankoEconomist 2-1
Chapterko3koInterdependencekoandkothekoGainskofromkoTrade 3-1
Partko2koSupplykoAndkoDemand:koHowkoMarketskoWork
Chapterko4koThekoMarketkoForceskoofkoSupplykoandkoDemand 4-1
Partko3koThekoDatakoofkoMacroeconomics
Chapterko5koMeasuringkoakoNation’skoIncome 5-1
Chapterko6koMeasuringkothekoCostkoofkoLiving 6-1
Partko4koThekoRealkoEconomykoinkothekoLongkoRun
Chapterko7koProductionkoandkoGrowth 7-1
Chapterko8koSaving,koInvestment,koandkothekoFinancialkoSystem 8-1
Chapterko9koUnemploymentkoandkoItskoNaturalkoRate 9-1
Partko5koMoneykoAndkoPriceskoinkothekoLongkoRun
Chapterko10koThekoMonetarykoSystem 10-1
Chapterko11koMoneykoGrowthkoandkoInflation 11-1
Partko6koThekoMacroeconomicskoofkoOpenkoEconomies
Chapterko12koOpen-EconomykoMacroeconomics:koBasickoConcepts 12-1
Chapterko13koAkoMacroeconomickoTheorykoofkothekoSmallkoOpenkoEconomy 13-1
Partko7koShort-RunkoEconomickoFluctuations
Chapterko14koAggregatekoDemandkoandkoAggregatekoSupply 14-1
Chapterko15koThekoInfluencekoofkoMonetarykoandkoFiscalkoPolicykoonkoAggregatekoDemand
15-1
Chapterko16koThekoShort-RunkoTradeoffkobetweenkoInflationkoandkoUnemployment 16-1
Partko8koFinalkoThoughts
Chapterko17koFivekoDebateskooverkoMacroeconomickoPolicy 17-1
iii
, PREFACE
Inkomostkopost-
secondarykocourses,koakolargekopercentagekoofkostudentkoassessmentkoiskobasedkoonkomultiple-
k o choicekotesting.koManykoinstructorskousekomultiple-
choicekoreluctantly,kobelievingkothatkoitkoiskoak o methodologykobestkousedkoforkotestingkowhatko
akostudentkorememberskoratherkothankowhatkoshekoorkohekohask o learned.
NelsonkoEducationkoLtd.kounderstandskothatkoakogoodkoqualitykomultiple-
choicekotestkobankkocankoprovidek o thekomeanskotokomeasurekohigher-
levelkothinkingkoskillskoaskowellkoaskorecall.koRecognizingkothek o importancekoofkomultiple-
choicekotestingkoinkotoday’skoclassroom,kowekohavekocreatedkoNETA—
thek o NelsonkoEducationkoTeachingkoAdvantagekoprogram—
tokoensurekothekovaluekoofkoourkohighkoqualitykotestk o banks.
ThekoNETAkoprogramkowaskocreatedkoinkopartnershipkowithkoDavidkoDiBattista,koako3MkoNation
alkoTeachingk o Fellow,koprofessorkoofkopsychologykoatkoBrockkoUniversity,koandkoresearcherkoin
kothekoareakoofkomultiple-k o choicekotesting.koNETAkoensureskothatkosubject-
matterkoexpertskowhokoauthorkotestkobankskohavekohadk o trainingkoinkotwokoareas:koavoidingko
commonkoerrorskoinkotestkoconstruction,koandkodevelopingkomultiple-
k o choicekotestkoquestionskothatko“getkobeyondkoremembering”kotokoassesskohigher-
levelkothinking.
AllkoNETAkotestkobankskoincludekoDavidkoDiBattista’skoguidekoforkoinstructors,ko“MultiplekoCho
icekoTests:k o GettingkoBeyondkoRemembering.”koThiskoguidekohaskobeenkodesignedkotokoassis
tkoyoukoinkousingkoNelsonk o testkobankskotokoachievekoyourkodesiredkooutcomeskoinkoyourkoco
urse.
ThekoTestkoBankkoforkoPrincipleskoofkoMacroeconomics,koSixthkoCanadiankoEditionkohaskobeenk
orevisedkofork o CanadiankostudentskobykoConstantinkoColonescu,koMacEwankoUniversity.koThe
komultiple-
choicek o questionskowerekowrittenkoandkoeditedkotokoconformkotokoNETAkoguidelines,kowhich
koemphasizekothek o developmentkoofkohigher-
orderkothinkingkoandkothekoeffectivekoconstructionkoofkoquestions.koNETAk o principleskoofkoqu
estionkoconstructionkohelpkoeliminatekoambiguity,koarguablekoanswers,koguesswork,k o andkou
nconsciouskocueskotokotest-
savvykostudents,koresultingkoinkoakotestkothatkoaccuratelykoreflectskostudentk o understanding.k
oThekoTestkoBankkoofferskooverko3510koquestions,koincludingkoaboutko2822komultiplek o choice
,koaboutko362kotrue/false,koaboutko162koproblems,koandkoaboutko164koshortkoanswerkoquestio
ns.
4
