NETA ASSESSMENT
m
Test Bank m
to accompany
m
TestmBankmpreparedmb
ym ConstantinmColonesc
um MacEwanmUniversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
m m m m m m m m
Sixth Canadian Edition
m m
BymN.mGregorymMankiwm/mRonaldmD.mKneebonem/mKennethmJ.mMcKenzie
TestmBankmpreparedmbymConstantinmColonescu,mMacEwanmUniversity
NETAmcopymeditor:mFrancesmRobinson
AvailablemonmInstructor’smResourcemCDmISBNm.m0-17-655440-8
COPYRIGHTm©2014mbymNelsonmEducationmLtd.mNelsonmismamregisteredmtrademarkmusedmhereinmundermlicence.mAl
lm rightsmreserved.
FormmoreminformationmcontactmNelson,m1120mBirchmountmRoad,mToronto,mOntariom M1Km5G4.mOrmyoumcanmvisitm
ourm Internetmsitematmwww.nelson.com.
ALLmRIGHTSmRESERVED.mNompartmofmthismworkmcoveredmbymthemcopyrightmhereonmmaymbemreproducedmormusedmi
nm anymformmormbymanymmeans—
graphic,melectronic,mormmechanical,mincludingmphotocopying,mrecording,mtaping,mwebm distributionmorminformati
onmstoragemandmretrievalmsystems—withoutmthemwrittenmpermissionmofmthempublisher
ii
, TABLE OF CONTENTS
m m
Partm1mIntroduction
Chapterm1mTenmPrinciplesmofmEconomics 1-1
Chapterm2mThinkingmLikemanmEconomist 2-1
Chapterm3mInterdependencemandmthemGainsmfrommTrade 3-1
Partm2mSupplymAndmDemand:mHowmMarketsmWork
Chapterm4mThemMarketmForcesmofmSupplymandmDemand 4-1
Partm3mThemDatamofmMacroeconomics
Chapterm5mMeasuringmamNation’smIncome 5-1
Chapterm6mMeasuringmthemCostmofmLiving 6-1
Partm4mThemRealmEconomyminmthemLongmRun
Chapterm7mProductionmandmGrowth 7-1
Chapterm8mSaving,mInvestment,mandmthemFinancialmSystem 8-1
Chapterm9mUnemploymentmandmItsmNaturalmRate 9-1
Partm5mMoneymAndmPricesminmthemLongmRun
Chapterm10mThemMonetarymSystem 10-1
Chapterm11mMoneymGrowthmandmInflation 11-1
Partm6mThemMacroeconomicsmofmOpenmEconomies
Chapterm12mOpen-EconomymMacroeconomics:mBasicmConcepts 12-1
Chapterm13mAmMacroeconomicmTheorymofmthemSmallmOpenmEconomy 13-1
Partm7mShort-RunmEconomicmFluctuations
Chapterm14mAggregatemDemandmandmAggregatemSupply 14-1
Chapterm15mThemInfluencemofmMonetarymandmFiscalmPolicymonmAggregatemDemand 15-1
Chapterm16mThemShort-RunmTradeoffmbetweenmInflationmandmUnemployment 16-1
Partm8mFinalmThoughts
Chapterm17mFivemDebatesmovermMacroeconomicmPolicy 17-1
iii
, PREFACE
Inmmostmpost-
secondarymcourses,mamlargempercentagemofmstudentmassessmentmismbasedmonmmultiple-
m choicemtesting.mManyminstructorsmusemmultiple-
choicemreluctantly,mbelievingmthatmitmismam methodologymbestmusedmformtestingmwhatmamstudentm
remembersmrathermthanmwhatmshemormhemhasm learned.
NelsonmEducationmLtd.munderstandsmthatmamgoodmqualitymmultiple-
choicemtestmbankmcanmprovidem themmeansmtommeasuremhigher-
levelmthinkingmskillsmasmwellmasmrecall.mRecognizingmthem importancemofmmultiple-
choicemtestingminmtoday’smclassroom,mwemhavemcreatedmNETA—
them NelsonmEducationmTeachingmAdvantagemprogram—
tomensuremthemvaluemofmourmhighmqualitymtestm banks.
ThemNETAmprogrammwasmcreatedminmpartnershipmwithmDavidmDiBattista,mam3MmNationalmTeachin
gm Fellow,mprofessormofmpsychologymatmBrockmUniversity,mandmresearcherminmthemareamofmmultipl
e-m choicemtesting.mNETAmensuresmthatmsubject-
mattermexpertsmwhomauthormtestmbanksmhavemhadm trainingminmtwomareas:mavoidingmcommonme
rrorsminmtestmconstruction,mandmdevelopingmmultiple-
m choicemtestmquestionsmthatm“getmbeyondmremembering”mtomassessmhigher-levelmthinking.
AllmNETAmtestmbanksmincludemDavidmDiBattista’smguidemforminstructors,m“MultiplemChoicemTests
:m GettingmBeyondmRemembering.”mThismguidemhasmbeenmdesignedmtomassistmyouminmusingmNel
sonm testmbanksmtomachievemyourmdesiredmoutcomesminmyourmcourse.
ThemTestmBankmformPrinciplesmofmMacroeconomics,mSixthmCanadianmEditionmhasmbeenmrevisedm
form CanadianmstudentsmbymConstantinmColonescu,mMacEwanmUniversity.mThemmultiple-
choicem questionsmweremwrittenmandmeditedmtomconformmtomNETAmguidelines,mwhichmemphasi
zemthem developmentmofmhigher-
ordermthinkingmandmthemeffectivemconstructionmofmquestions.mNETAm principlesmofmquestionmco
nstructionmhelpmeliminatemambiguity,marguablemanswers,mguesswork,m andmunconsciousmcuesm
tomtest-
savvymstudents,mresultingminmamtestmthatmaccuratelymreflectsmstudentm understanding.mThemTest
mBankmoffersmoverm3510mquestions,mincludingmaboutm 2822mmultiplem choice,maboutm362mtrue/f
alse,maboutm162mproblems,mandmaboutm164mshortmanswermquestions.
Inmadditionmtomprovidingmamvarietymofmquestionsmrelatedmtomeachmchaptermobjective,mthismtestmb
ankm alsomemploysmamseriesmofmtagsmthatmcanmhelpmdesignmeffective,mbalancedmtestsmbymthemme
4
m
Test Bank m
to accompany
m
TestmBankmpreparedmb
ym ConstantinmColonesc
um MacEwanmUniversity
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
m m m m m m m m
Sixth Canadian Edition
m m
BymN.mGregorymMankiwm/mRonaldmD.mKneebonem/mKennethmJ.mMcKenzie
TestmBankmpreparedmbymConstantinmColonescu,mMacEwanmUniversity
NETAmcopymeditor:mFrancesmRobinson
AvailablemonmInstructor’smResourcemCDmISBNm.m0-17-655440-8
COPYRIGHTm©2014mbymNelsonmEducationmLtd.mNelsonmismamregisteredmtrademarkmusedmhereinmundermlicence.mAl
lm rightsmreserved.
FormmoreminformationmcontactmNelson,m1120mBirchmountmRoad,mToronto,mOntariom M1Km5G4.mOrmyoumcanmvisitm
ourm Internetmsitematmwww.nelson.com.
ALLmRIGHTSmRESERVED.mNompartmofmthismworkmcoveredmbymthemcopyrightmhereonmmaymbemreproducedmormusedmi
nm anymformmormbymanymmeans—
graphic,melectronic,mormmechanical,mincludingmphotocopying,mrecording,mtaping,mwebm distributionmorminformati
onmstoragemandmretrievalmsystems—withoutmthemwrittenmpermissionmofmthempublisher
ii
, TABLE OF CONTENTS
m m
Partm1mIntroduction
Chapterm1mTenmPrinciplesmofmEconomics 1-1
Chapterm2mThinkingmLikemanmEconomist 2-1
Chapterm3mInterdependencemandmthemGainsmfrommTrade 3-1
Partm2mSupplymAndmDemand:mHowmMarketsmWork
Chapterm4mThemMarketmForcesmofmSupplymandmDemand 4-1
Partm3mThemDatamofmMacroeconomics
Chapterm5mMeasuringmamNation’smIncome 5-1
Chapterm6mMeasuringmthemCostmofmLiving 6-1
Partm4mThemRealmEconomyminmthemLongmRun
Chapterm7mProductionmandmGrowth 7-1
Chapterm8mSaving,mInvestment,mandmthemFinancialmSystem 8-1
Chapterm9mUnemploymentmandmItsmNaturalmRate 9-1
Partm5mMoneymAndmPricesminmthemLongmRun
Chapterm10mThemMonetarymSystem 10-1
Chapterm11mMoneymGrowthmandmInflation 11-1
Partm6mThemMacroeconomicsmofmOpenmEconomies
Chapterm12mOpen-EconomymMacroeconomics:mBasicmConcepts 12-1
Chapterm13mAmMacroeconomicmTheorymofmthemSmallmOpenmEconomy 13-1
Partm7mShort-RunmEconomicmFluctuations
Chapterm14mAggregatemDemandmandmAggregatemSupply 14-1
Chapterm15mThemInfluencemofmMonetarymandmFiscalmPolicymonmAggregatemDemand 15-1
Chapterm16mThemShort-RunmTradeoffmbetweenmInflationmandmUnemployment 16-1
Partm8mFinalmThoughts
Chapterm17mFivemDebatesmovermMacroeconomicmPolicy 17-1
iii
, PREFACE
Inmmostmpost-
secondarymcourses,mamlargempercentagemofmstudentmassessmentmismbasedmonmmultiple-
m choicemtesting.mManyminstructorsmusemmultiple-
choicemreluctantly,mbelievingmthatmitmismam methodologymbestmusedmformtestingmwhatmamstudentm
remembersmrathermthanmwhatmshemormhemhasm learned.
NelsonmEducationmLtd.munderstandsmthatmamgoodmqualitymmultiple-
choicemtestmbankmcanmprovidem themmeansmtommeasuremhigher-
levelmthinkingmskillsmasmwellmasmrecall.mRecognizingmthem importancemofmmultiple-
choicemtestingminmtoday’smclassroom,mwemhavemcreatedmNETA—
them NelsonmEducationmTeachingmAdvantagemprogram—
tomensuremthemvaluemofmourmhighmqualitymtestm banks.
ThemNETAmprogrammwasmcreatedminmpartnershipmwithmDavidmDiBattista,mam3MmNationalmTeachin
gm Fellow,mprofessormofmpsychologymatmBrockmUniversity,mandmresearcherminmthemareamofmmultipl
e-m choicemtesting.mNETAmensuresmthatmsubject-
mattermexpertsmwhomauthormtestmbanksmhavemhadm trainingminmtwomareas:mavoidingmcommonme
rrorsminmtestmconstruction,mandmdevelopingmmultiple-
m choicemtestmquestionsmthatm“getmbeyondmremembering”mtomassessmhigher-levelmthinking.
AllmNETAmtestmbanksmincludemDavidmDiBattista’smguidemforminstructors,m“MultiplemChoicemTests
:m GettingmBeyondmRemembering.”mThismguidemhasmbeenmdesignedmtomassistmyouminmusingmNel
sonm testmbanksmtomachievemyourmdesiredmoutcomesminmyourmcourse.
ThemTestmBankmformPrinciplesmofmMacroeconomics,mSixthmCanadianmEditionmhasmbeenmrevisedm
form CanadianmstudentsmbymConstantinmColonescu,mMacEwanmUniversity.mThemmultiple-
choicem questionsmweremwrittenmandmeditedmtomconformmtomNETAmguidelines,mwhichmemphasi
zemthem developmentmofmhigher-
ordermthinkingmandmthemeffectivemconstructionmofmquestions.mNETAm principlesmofmquestionmco
nstructionmhelpmeliminatemambiguity,marguablemanswers,mguesswork,m andmunconsciousmcuesm
tomtest-
savvymstudents,mresultingminmamtestmthatmaccuratelymreflectsmstudentm understanding.mThemTest
mBankmoffersmoverm3510mquestions,mincludingmaboutm 2822mmultiplem choice,maboutm362mtrue/f
alse,maboutm162mproblems,mandmaboutm164mshortmanswermquestions.
Inmadditionmtomprovidingmamvarietymofmquestionsmrelatedmtomeachmchaptermobjective,mthismtestmb
ankm alsomemploysmamseriesmofmtagsmthatmcanmhelpmdesignmeffective,mbalancedmtestsmbymthemme
4
