NETA ASSESSMENT
Test Bank
to accompany
TestpBankppreparedpby
p ConstantinpColonescup
MacEwanpUniversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
p p p p p p p p
Sixth Canadian Edition
p p
BypN.pGregorypMankiwp/pRonaldpD.pKneebonep/pKennethpJ.pMcKenzie
TestpBankppreparedpbypConstantinpColonescu,pMacEwanpUniversity
NETApcopypeditor:pFrancespRobinson
AvailableponpInstructor’spResourcepCDpISBNp.p0-17-655440-8
COPYRIGHTp©2014pbypNelsonpEducationpLtd.pNelsonpispapregisteredptrademarkpusedphereinpunderplicence.pAllp rig
htspreserved.
ForpmorepinformationpcontactpNelson,p1120pBirchmountpRoad,pToronto,pOntariop M1Kp5G4.pOrpyoupcanpvisitpourp
Internetpsitepatpwww.nelson.com.
ALLpRIGHTSpRESERVED.pNoppartpofpthispworkpcoveredpbypthepcopyrightphereonpmaypbepreproducedporpusedpinp an
ypformporpbypanypmeans—
graphic,pelectronic,porpmechanical,pincludingpphotocopying,precording,ptaping,pwebp distributionporpinformationps
toragepandpretrievalpsystems—withoutpthepwrittenppermissionpofptheppublisher
ii
, TABLE OF CONTENTS
p p
Partp1pIntroduction
Chapterp1pTenpPrinciplespofpEconomics 1-1
Chapterp2pThinkingpLikepanpEconomist 2-1
Chapterp3pInterdependencepandpthepGainspfrompTrade 3-1
Partp2pSupplypAndpDemand:pHowpMarketspWork
Chapterp4pThepMarketpForcespofpSupplypandpDemand 4-1
Partp3pThepDatapofpMacroeconomics
Chapterp5pMeasuringpapNation’spIncome 5-1
Chapterp6pMeasuringpthepCostpofpLiving 6-1
Partp4pThepRealpEconomypinpthepLongpRun
Chapterp7pProductionpandpGrowth 7-1
Chapterp8pSaving,pInvestment,pandpthepFinancialpSystem 8-1
Chapterp9pUnemploymentpandpItspNaturalpRate 9-1
Partp5pMoneypAndpPricespinpthepLongpRun
Chapterp10pThepMonetarypSystem 10-1
Chapterp11pMoneypGrowthpandpInflation 11-1
Partp6pThepMacroeconomicspofpOpenpEconomies
Chapterp12pOpen-EconomypMacroeconomics:pBasicpConcepts 12-1
Chapterp13pApMacroeconomicpTheorypofpthepSmallpOpenpEconomy 13-1
Partp7pShort-RunpEconomicpFluctuations
Chapterp14pAggregatepDemandpandpAggregatepSupply 14-1
Chapterp15pThepInfluencepofpMonetarypandpFiscalpPolicyponpAggregatepDemand 15-1
Chapterp16pThepShort-RunpTradeoffpbetweenpInflationpandpUnemployment 16-1
Partp8pFinalpThoughts
Chapterp17pFivepDebatespoverpMacroeconomicpPolicy 17-1
iii
, PREFACE
Inpmostppost-
secondarypcourses,paplargeppercentagepofpstudentpassessmentpispbasedponpmultiple-
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choicepreluctantly,pbelievingpthatpitpispap methodologypbestpusedpforptestingpwhatpapstudentprem
emberspratherpthanpwhatpsheporphephasp learned.
NelsonpEducationpLtd.punderstandspthatpapgoodpqualitypmultiple-
choiceptestpbankpcanpprovidep thepmeansptopmeasurephigher-
levelpthinkingpskillspaspwellpasprecall.pRecognizingpthep importancepofpmultiple-
choiceptestingpinptoday’spclassroom,pwephavepcreatedpNETA—
thep NelsonpEducationpTeachingpAdvantagepprogram—
topensurepthepvaluepofpourphighpqualityptestp banks.
ThepNETApprogrampwaspcreatedpinppartnershippwithpDavidpDiBattista,pap3MpNationalpTeachingp F
ellow,pprofessorpofppsychologypatpBrockpUniversity,pandpresearcherpinpthepareapofpmultiple-
p choiceptesting.pNETApensurespthatpsubject-
matterpexpertspwhopauthorptestpbanksphavephadp trainingpinptwopareas:pavoidingpcommonperror
spinptestpconstruction,pandpdevelopingpmultiple-
p choiceptestpquestionspthatp“getpbeyondpremembering”ptopassessphigher-levelpthinking.
AllpNETAptestpbankspincludepDavidpDiBattista’spguidepforpinstructors,p“MultiplepChoicepTests:p G
ettingpBeyondpRemembering.”pThispguidephaspbeenpdesignedptopassistpyoupinpusingpNelsonp tes
tpbanksptopachievepyourpdesiredpoutcomespinpyourpcourse.
ThepTestpBankpforpPrinciplespofpMacroeconomics,pSixthpCanadianpEditionphaspbeenprevisedpforp
CanadianpstudentspbypConstantinpColonescu,pMacEwanpUniversity.pThepmultiple-
choicep questionspwerepwrittenpandpeditedptopconformptopNETApguidelines,pwhichpemphasizept
hep developmentpofphigher-
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ructionphelppeliminatepambiguity,parguablepanswers,pguesswork,p andpunconsciouspcuesptoptes
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alsopemployspapseriespofptagspthatpcanphelppdesignpeffective,pbalancedptestspbypthepmeasurepofp c
4
