Test Bank Test Bank, Macroeconomics: Private and Public Choice 13th Edition James Gwartney Florida State University Richard Stroup Montana State University Russell Sobel West Virginia University David Macpherson Trinity University San Antionio,TX Prepared by Joseph P. Calhoun Florida State University Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States
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Table of Contents Chapter 1 The Economic Approach... 1 Chapter 2 Some Tools of the Economist... 45 Chapter 3 Supply, Demand, and the Market Process... 105 Chapter 4 Supply and Demand: Applications and Extensions... 201 Chapter 5 Difficult Cases for the Market and the Role of Government... 277 Chapter 6 The Economics of Collective Decision Making... 313 Chapter 7 Taking the Nation s Economic Pulse... 349 Chapter 8 Economic Fluctuations, Unemployment, and Inflation... 411 Chapter 9 An Introduction to Basic Macroeconomic Markets... 457 Chapter 10 Chapter 11 Chapter 12 Dynamic Change, Economic Fluctuations, and the AD-AS Model...509 Fiscal Policy: The Keynesian View and Historical Perspective...561 Fiscal Policy, Incentives, and Secondary Effects...599 Chapter 13 Money and the Banking System...635 Chapter 14 Modern Macroeconomics and Monetary Policy...683 Chapter 15 Chapter 16 Chapter 17 Stabilization Policy, Output, and Employment...731 Creating an Environment for Growth and Prosperity...767 Institutions, Policies, and Cross-Country Differences in Income and Growth...793 Chapter 18 Gaining From International Trade...825 Chapter 19 International Finance and the Foreign Exchange Market...877 iii
Special Topic 1 Government Spending and Taxation... 909 Special Topic 2 The Internet: How Is It Changing the Economy?... 925 Special Topic 3 The Economics of Social Security... 937 Special Topic 4 The Stock Market: Its Function, Performance, and Potential as an Investment Opportunity... 949 Special Topic 5 The Crisis of 2008: Causes and Lessons for the Future... 965 Special Topic 6 Lessons from the Great Depression... 977 Special Topic 7 Lessons from the Japanese Experience... 989 Special Topic 8 The Federal Budget and National Debt... 1001 iv
Preface This test bank contains over 4,000 questions. The questions are organized by the major headings within each chapter (or special topic) of Macroeconomics: Private and Public Choice. Similar questions under each major heading are also grouped together. This makes it easy for instructors to assemble balanced quizzes and examinations that reflect their preferences. The first ten questions of each chapter (and the first five questions of each special topic) are designed for use as a quiz. The Coursebook and online practice questions, which can be found on the textbook s Web site at http://cengage.com/economics/gwartney, provide students with approximately 15 study questions for each chapter and 10 for each special topic. The multiple-choice questions from those sources are also contained in the test bank and designated as such. Many instructors will want to integrate the questions from these sources into their quizzes and exams in order to provide their students with a strong incentive to work through these questions. Although the Coursebook and online questions are different than those in the test bank, they focus on the same concepts. Clearly, studying the Coursebook and online questions will help prepare students for their exams. Examview, the computerized testing software that accompanies Macroeconomics: Private and Public Choice contains all the questions in the printed test bank. Using ExamView, instructors can add or edit questions, instructions, and answers, and select questions by previewing them on screen, selecting them randomly, or selecting them by criteria. ExamView can automatically scramble questions, multiple-choice options, and questions sections, if instructors choose to do so to create different test versions. Instructors can also create and administer quizzes online via the Internet, a local-area network (LAN), or a widearea network (WAN) using ExamView. Joe Calhoun of Florida State University played a leading role in the revision of this test bank. We know how important it is for you to have a quality test bank. We believe this supplement will provide you with an integrated package of quality questions a powerful tool with which to motivate your students to perform at a higher level. If you have comments or suggestions for its improvement, we would be delighted to hear from you. Joseph Calhoun James Gwartney David Macpherson Russell Sobel Richard Stroup v