NETAASSESSMENT
5
Test Bank 5
to accompany
5
Test5Bank5prepared5by
5 Constantin5Colonescu5
MacEwan5University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test5Bank5prepared5by5Constantin5Colonescu,5MacEwan5University
NETA5copy5editor:5Frances5Robinson
Available5on5Instructor’s5Resource5CD5ISBN5.50-17-655440-8
COPYRIGHT5©20145by5Nelson5Education5Ltd.5Nelson5is5a5registered5trademark5used5herein5under5licence.5All5 rig
hts5reserved.
For5more5information5contact5Nelson,511205Birchmount5Road,5Toronto,5Ontario5 M1K55G4.5Or5you5can5visit5our5 I
nternet5site5at5www.nelson.com.
ALL5RIGHTS5RESERVED.5No5part5of5this5work5covered5by5the5copyright5hereon5may5be5reproduced5or5used5in5 any
5form5or5by5any5means—
graphic,5electronic,5or5mechanical,5including5photocopying,5recording,5taping,5web5 distribution5or5information5st
orage5and5retrieval5systems—without5the5written5permission5of5the5publisher
ii
, TABLE OF CONTENTS
5 5
Part515Introduction
Chapter515Ten5Principles5of5Economics 1-1
Chapter525Thinking5Like5an5Economist 2-1
Chapter535Interdependence5and5the5Gains5from5Trade 3-1
Part525Supply5And5Demand:5How5Markets5Work
Chapter545The5Market5Forces5of5Supply5and5Demand 4-1
Part535The5Data5of5Macroeconomics
Chapter555Measuring5a5Nation’s5Income 5-1
Chapter565Measuring5the5Cost5of5Living 6-1
Part545The5Real5Economy5in5the5Long5Run
Chapter575Production5and5Growth 7-1
Chapter585Saving,5Investment,5and5the5Financial5System 8-1
Chapter595Unemployment5and5Its5Natural5Rate 9-1
Part555Money5And5Prices5in5the5Long5Run
Chapter5105The5Monetary5System 10-1
Chapter5115Money5Growth5and5Inflation 11-1
Part565The5Macroeconomics5of5Open5Economies
Chapter5125Open-Economy5Macroeconomics:5Basic5Concepts 12-1
Chapter5135A5Macroeconomic5Theory5of5the5Small5Open5Economy 13-1
Part575Short-Run5Economic5Fluctuations
Chapter5145Aggregate5Demand5and5Aggregate5Supply 14-1
Chapter5155The5Influence5of5Monetary5and5Fiscal5Policy5on5Aggregate5Demand 15-1
Chapter5165The5Short-Run5Tradeoff5between5Inflation5and5Unemployment 16-1
Part585Final5Thoughts
Chapter5175Five5Debates5over5Macroeconomic5Policy 17-1
iii
, PREFACE
In5most5post-
secondary5courses,5a5large5percentage5of5student5assessment5is5based5on5multiple-
5 choice5testing.5Many5instructors5use5multiple-
choice5reluctantly,5believing5that5it5is5a5 methodology5best5used5for5testing5what5a5student5reme
mbers5rather5than5what5she5or5he5has5 learned.
Nelson5Education5Ltd.5understands5that5a5good5quality5multiple-
choice5test5bank5can5provide5 the5means5to5measure5higher-
level5thinking5skills5as5well5as5recall.5Recognizing5the5 importance5of5multiple-
choice5testing5in5today’s5classroom,5we5have5created5NETA—
the5 Nelson5Education5Teaching5Advantage5program—
to5ensure5the5value5of5our5high5quality5test5 banks.
The5NETA5program5was5created5in5partnership5with5David5DiBattista,5a53M5National5Teaching5 F
ellow,5professor5of5psychology5at5Brock5University,5and5researcher5in5the5area5of5multiple-
5 choice5testing.5NETA5ensures5that5subject-
matter5experts5who5author5test5banks5have5had5 training5in5two5areas:5avoiding5common5errors
5in5test5construction,5and5developing5multiple-
5 choice5test5questions5that5“get5beyond5remembering”5to5assess5higher-level5thinking.
All5NETA5test5banks5include5David5DiBattista’s5guide5for5instructors,5“Multiple5Choice5Tests:5 G
etting5Beyond5Remembering.”5This5guide5has5been5designed5to5assist5you5in5using5Nelson5 test
5banks5to5achieve5your5desired5outcomes5in5 your5course.
The5Test5Bank5for5Principles5of5Macroeconomics,5Sixth5Canadian5Edition5has5been5revised5for5
Canadian5students5by5Constantin5Colonescu,5MacEwan5University.5The5multiple-
choice5 questions5were5written5and5edited5to5conform5to5NETA5guidelines,5which5emphasize5t
he5 development5of5higher-
order5thinking5and5the5effective5construction5of5questions.5NETA5 principles5of5question5const
ruction5help5eliminate5ambiguity,5arguable5answers,5guesswork,5 and5unconscious5cues5to5tes
t-
savvy5students,5resulting5in5a5test5that5accurately5reflects5student5 understanding.5The5Test5Ba
nk5offers5over535105questions,5including5about528225multiple5 choice,5about53625true/false,5ab
out51625problems,5and5about51645short5answer5questions.
In5addition5to5providing5a5variety5of5questions5related5to5each5chapter5objective,5this5test5bank5
also5employs5a5series5of5tags5that5can5help5design5effective,5balanced5tests5by5the5measure5of5 c
4
5
Test Bank 5
to accompany
5
Test5Bank5prepared5by
5 Constantin5Colonescu5
MacEwan5University
,NETA Assessment: Test Bank to accompany Principles of Macroeconomics,
Sixth Canadian Edition
By N. Gregory Mankiw / Ronald D. Kneebone / Kenneth J. McKenzie
Test5Bank5prepared5by5Constantin5Colonescu,5MacEwan5University
NETA5copy5editor:5Frances5Robinson
Available5on5Instructor’s5Resource5CD5ISBN5.50-17-655440-8
COPYRIGHT5©20145by5Nelson5Education5Ltd.5Nelson5is5a5registered5trademark5used5herein5under5licence.5All5 rig
hts5reserved.
For5more5information5contact5Nelson,511205Birchmount5Road,5Toronto,5Ontario5 M1K55G4.5Or5you5can5visit5our5 I
nternet5site5at5www.nelson.com.
ALL5RIGHTS5RESERVED.5No5part5of5this5work5covered5by5the5copyright5hereon5may5be5reproduced5or5used5in5 any
5form5or5by5any5means—
graphic,5electronic,5or5mechanical,5including5photocopying,5recording,5taping,5web5 distribution5or5information5st
orage5and5retrieval5systems—without5the5written5permission5of5the5publisher
ii
, TABLE OF CONTENTS
5 5
Part515Introduction
Chapter515Ten5Principles5of5Economics 1-1
Chapter525Thinking5Like5an5Economist 2-1
Chapter535Interdependence5and5the5Gains5from5Trade 3-1
Part525Supply5And5Demand:5How5Markets5Work
Chapter545The5Market5Forces5of5Supply5and5Demand 4-1
Part535The5Data5of5Macroeconomics
Chapter555Measuring5a5Nation’s5Income 5-1
Chapter565Measuring5the5Cost5of5Living 6-1
Part545The5Real5Economy5in5the5Long5Run
Chapter575Production5and5Growth 7-1
Chapter585Saving,5Investment,5and5the5Financial5System 8-1
Chapter595Unemployment5and5Its5Natural5Rate 9-1
Part555Money5And5Prices5in5the5Long5Run
Chapter5105The5Monetary5System 10-1
Chapter5115Money5Growth5and5Inflation 11-1
Part565The5Macroeconomics5of5Open5Economies
Chapter5125Open-Economy5Macroeconomics:5Basic5Concepts 12-1
Chapter5135A5Macroeconomic5Theory5of5the5Small5Open5Economy 13-1
Part575Short-Run5Economic5Fluctuations
Chapter5145Aggregate5Demand5and5Aggregate5Supply 14-1
Chapter5155The5Influence5of5Monetary5and5Fiscal5Policy5on5Aggregate5Demand 15-1
Chapter5165The5Short-Run5Tradeoff5between5Inflation5and5Unemployment 16-1
Part585Final5Thoughts
Chapter5175Five5Debates5over5Macroeconomic5Policy 17-1
iii
, PREFACE
In5most5post-
secondary5courses,5a5large5percentage5of5student5assessment5is5based5on5multiple-
5 choice5testing.5Many5instructors5use5multiple-
choice5reluctantly,5believing5that5it5is5a5 methodology5best5used5for5testing5what5a5student5reme
mbers5rather5than5what5she5or5he5has5 learned.
Nelson5Education5Ltd.5understands5that5a5good5quality5multiple-
choice5test5bank5can5provide5 the5means5to5measure5higher-
level5thinking5skills5as5well5as5recall.5Recognizing5the5 importance5of5multiple-
choice5testing5in5today’s5classroom,5we5have5created5NETA—
the5 Nelson5Education5Teaching5Advantage5program—
to5ensure5the5value5of5our5high5quality5test5 banks.
The5NETA5program5was5created5in5partnership5with5David5DiBattista,5a53M5National5Teaching5 F
ellow,5professor5of5psychology5at5Brock5University,5and5researcher5in5the5area5of5multiple-
5 choice5testing.5NETA5ensures5that5subject-
matter5experts5who5author5test5banks5have5had5 training5in5two5areas:5avoiding5common5errors
5in5test5construction,5and5developing5multiple-
5 choice5test5questions5that5“get5beyond5remembering”5to5assess5higher-level5thinking.
All5NETA5test5banks5include5David5DiBattista’s5guide5for5instructors,5“Multiple5Choice5Tests:5 G
etting5Beyond5Remembering.”5This5guide5has5been5designed5to5assist5you5in5using5Nelson5 test
5banks5to5achieve5your5desired5outcomes5in5 your5course.
The5Test5Bank5for5Principles5of5Macroeconomics,5Sixth5Canadian5Edition5has5been5revised5for5
Canadian5students5by5Constantin5Colonescu,5MacEwan5University.5The5multiple-
choice5 questions5were5written5and5edited5to5conform5to5NETA5guidelines,5which5emphasize5t
he5 development5of5higher-
order5thinking5and5the5effective5construction5of5questions.5NETA5 principles5of5question5const
ruction5help5eliminate5ambiguity,5arguable5answers,5guesswork,5 and5unconscious5cues5to5tes
t-
savvy5students,5resulting5in5a5test5that5accurately5reflects5student5 understanding.5The5Test5Ba
nk5offers5over535105questions,5including5about528225multiple5 choice,5about53625true/false,5ab
out51625problems,5and5about51645short5answer5questions.
In5addition5to5providing5a5variety5of5questions5related5to5each5chapter5objective,5this5test5bank5
also5employs5a5series5of5tags5that5can5help5design5effective,5balanced5tests5by5the5measure5of5 c
4
