Question # 1

Dynamic multipliers occur when

Choose an answer

the assumption of ceteris paribus is dropped

The economy is not in equilibrium

Consumption is unrelated to disposable income

there is lagged response between consumption and disposable income

An increase in total production causes the demand for money to _____ and the interest rate to ______

Choose an answer

Increase ; increase

Increase ; decrease

decrease ; decrease

decrease,; increase

In the Keynesian model which curve is vertical.

Choose an answer

LRAS

SRAS

AD

NS

The low point in the business cycle is referred to as the

Choose an answer

Expansion

Boom

Trough

Peak

In the monetary base is increased by $1,000 and the reserve requirement is 10% by how much will the money supply be increased.

Choose an answer

$100

$1,000

$5,000

$10,000

Suppose there is full employment and a neoclassical aggregate supply schedule A 105 increases in the nominal money supply.

Choose an answer

Has no effect upon the price level

Increase the rate of interest

Increase the nominal wage 10%

Increase the real money supply 10%

Which of the following is an example of a productivity shock.

Choose an answer

The introduction of new management techniques

A change in taxes on corporate profits

A change in the level of government transferors

An increase in the money supply

The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.

Choose an answer

Workers effort may depend on the unemployment rate and the real wage

During a recession labor supply will decrease reducing the efficiency wage

During a recession productivity wil fall causing a reduction in the efficiency wage

During a boom labor demand will increase, causing the efficiency wage to rise

The equation for the LM curve is.

Choose an answer

Y = 100 -50 i

Y = 50 + 50 i

Y = 50 - 80 i

Y = 80 + 50 i

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Choose an answer

20.2

19.9

14.7

17.2

All of the following are obstacles to international economic policy coordination except.

Choose an answer

Different national objectives are institutions

Different national political climates

Different phases in the business cycle

Different national currencies.

Based on the data above , the increase in potential MI would be

Choose an answer

Rs.50 billion

Rs.300 billion

Rs.60 billion

Rs.100 billion

A commercial bank has a required reserve ratio of 20% and desires to hold 5% in excess reserves. the bank receives a Rs. 10,000 deposit. It it abides by the required reserve ration and its desire to hold excess reserves the bank can make a loan of a most.

Choose an answer

Rs.7500

Rs.2500

Rs.5000

Rs.30,000

An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________

Choose an answer

Shift down and to the left be unchanged

Shift down and to the left shift left

Shift up and to the right be unchanged

Shift up and to the right shift left

Net National product equals.

Choose an answer

Gross national product minus indirect business taxes

Gross national product minus depreciation

National income minus indirect business taxes

National income pluses depreciation

Which of the following is incorrect with respect to the consumption diagram.

Choose an answer

the interest rate is a premium

MRS = (i +r)

The consumer will be lender in time zero

The consumer lends 700

The sign of the simple correlation coefficient is determined by

Choose an answer

The intercept of the least squares equation.

The slope of the least squares equation

The appropriate economic theory.

The researcher

According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.

Choose an answer

An increase ; an increase

An increase; a decrease

A decrease ; an increase

a decrease ; a decrease

Given fixed change rate assume Pakistan initiates expansionary monetary and fiscal polices to combat recession these policies will also.

Choose an answer

Increase both imports and exports

Increase exports and reduce import

Reduce a balance of payments surplus

Reduce a balance of payment deficit

An expansionary supply side shock results in.

Choose an answer

An increased real national income

The aggregate supply curve shifting to the left

The aggregate demand curve shifting to the right

The aggregate demand curve shifting to the left

The MPS = 0.4 and government spending increases by 20 billion. The LM curve

Choose an answer

Shifts to the right by 20 billion

Shifts to the right by 50 billion

Does not shift

shifts to the left by 30 billion

More Classes

Other Links

PPSC Economics Chapter 3 Macro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer