1
NETA ASSESSMENT
Test Bank to
accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
Page 1 of 917
,2
NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
distribution or information storage and retrieval systems—without the written permission of the publisher
Page 2 of 917
,3
ii
TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Page 3 of 917
, 4
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
iii
PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiplechoice testing. Many instructors use multiple-choice reluctantly, believing that it is a
methodology best used for testing what a student remembers rather than what she or he has
learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
the means to measure higher-level thinking skills as well as recall. Recognizing the
importance of multiple-choice testing in today’s classroom, we have created NETA—the
Nelson Education Teaching Advantage program—to ensure the value of our high quality test
banks.
Page 4 of 917
NETA ASSESSMENT
Test Bank to
accompany
Test Bank prepared by
Constantin Colonescu
MacEwan University
Page 1 of 917
,2
NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test Bank prepared by Constantin Colonescu, MacEwan University
NETA copy editor: Frances Robinson
Available on Instructor’s Resource CD ISBN . 0-17-655440-8
COPYRIGHT ©2014 by Nelson Education Ltd. Nelson is a registered trademark used herein under licence. All
rights reserved.
For more information contact Nelson, 1120 Birchmount Road, Toronto, Ontario M1K 5G4. Or you can visit our
Internet site at www.nelson.com.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in
any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, web
distribution or information storage and retrieval systems—without the written permission of the publisher
Page 2 of 917
,3
ii
TABLE OF CONTENTS
Part 1 Introduction
Chapter 1 Ten Principles of Economics 1-1
Chapter 2 Thinking Like an Economist 2-1
Chapter 3 Interdependence and the Gains from Trade 3-1
Part 2 Supply And Demand: How Markets Work
Chapter 4 The Market Forces of Supply and Demand 4-1
Part 3 The Data of Macroeconomics
Chapter 5 Measuring a Nation’s Income 5-1
Chapter 6 Measuring the Cost of Living 6-1
Part 4 The Real Economy in the Long Run
Chapter 7 Production and Growth 7-1
Chapter 8 Saving, Investment, and the Financial System 8-1
Chapter 9 Unemployment and Its Natural Rate 9-1
Part 5 Money And Prices in the Long Run
Chapter 10 The Monetary System 10-1
Chapter 11 Money Growth and Inflation 11-1
Part 6 The Macroeconomics of Open Economies
Chapter 12 Open-Economy Macroeconomics: Basic Concepts 12-1
Chapter 13 A Macroeconomic Theory of the Small Open Economy 13-1
Part 7 Short-Run Economic Fluctuations
Page 3 of 917
, 4
Chapter 14 Aggregate Demand and Aggregate Supply 14-1
Chapter 15 The Influence of Monetary and Fiscal Policy on Aggregate Demand 15-1
Chapter 16 The Short-Run Tradeoff between Inflation and Unemployment 16-1
Part 8 Final Thoughts
Chapter 17 Five Debates over Macroeconomic Policy 17-1
iii
PREFACE
In most post-secondary courses, a large percentage of student assessment is based on
multiplechoice testing. Many instructors use multiple-choice reluctantly, believing that it is a
methodology best used for testing what a student remembers rather than what she or he has
learned.
Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide
the means to measure higher-level thinking skills as well as recall. Recognizing the
importance of multiple-choice testing in today’s classroom, we have created NETA—the
Nelson Education Teaching Advantage program—to ensure the value of our high quality test
banks.
Page 4 of 917
