PPSC Economics Topic 3 MCQS Test Preparation

Are you getting prepared for the PPSC economics test to appear for the upcoming positions? Well, you are offered the best wishes for your attempt. However, at the same time, the team of Ilmkidunya invites all the candidates to get a better solution for PPSC examination preparation. Students can find sample PPSC online tests. These tests will make the students able to know the exact paper pattern and also help them to sort out the important questions according to examination. Here on this page, the test of Topic 3, Macroeconomics is offered. However, students can also attempt the tests of other Topic through separate sections and pages.

MCQ's Test For PPSC Economics Topic 3 Macro Economics

Try The MCQ's Test For PPSC Economics Topic 3 Macro Economics

  • Total Questions20

  • Time Allowed20

PPSC Economics Topic 3 Macro Economics

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Question # 1

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

Question # 2

The practice of using fiscal and monetary policy to stabilize the economy is known as.

Question # 3

A situation in which expansionary in monetary policy has no effect on the economy is known as.

Question # 4

If the demand for coffee decreases as income decreases, coffee is a

Question # 5

The fraction of additional current income that a person consumes in the current period is known as the

Question # 6

Economists use the phrase ceteris paribus to express the assumption.

Question # 7

The natural rate of unemployed is generally thought of as the.

Question # 8

Suppose the intersection of the IS and LM curves is to the left of the FE line A decrease in the price level would most likely. eliminate a disequilibrium among the asset labor and goods markets by.

Question # 9

The equilibrium level of employment achieved after the complete adjustment of wages and prices, is known as the.

Question # 10

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.

Question # 11

Monetary expansion can still be effective in getting out of liquidity trap if it's combined with.

Question # 12

The equilibrium level of income of the open economic model is.

Question # 13

According to the life cycle hypothesis consumption is related to.

Question # 14

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

Question # 15

Appreciation of the U.S. dollar results in.

Question # 16

The aggregate demand curve

Question # 17

Firms hire labor at the point where the

Question # 18

If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is

Question # 19

Which of the following procedures is included in the process that produces a value for disposable personal income

Question # 20

Which of the following changes shifts the SRAS curve down.

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Top Scorers Of PPSC Economics Topic 3 Macro Economics MCQ`s Test

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 If the intercept of the consumption function is 75, and MPS is 0.10 the value of consumption expenditures at Yd = Rs. 5,000 is
A. Rs.4,500
B. Rs. 575
C. Rs.500
D.
Rs. 4,575
2 Hyperinflation occurs when
A. The inflation rate rises
B. The inflation Tate declines
C. The inflation rate is extremely high
D. The inflation rate is extremely low
3 The normal interest rate minus the inflation rate is the
A. Depreciation rate
B. Discount rate
C. Real interest rate
D. Forward rate
4 To ensure that the fundamental identity of national income accounting holds changes in inventories are.
A. Ignored
B. Counted as consumption
C. Treated as part of saving
D. Treated as part of expenditure
5 Full- employment output is the level of output that firms in the economy supply when
A. Taxes are zero
B. Wages and prices have fully adjusted
C. The unemployment rate in zero
D. All capital is fully utilized
6 Given the IS equation Y = Ke a - Ke Bn the IS slope decreases when
A. Ke increase and b increases
B. Ke decreases and b increases
C. Ke increases and b decreases
D. Ke decreas4es and b decreases
7 When the supply of money increases.
A. The LM curve will shift in
B. The LM curve will shit out
C. The demand for money will decrease
D. The demand for money will increase
8 In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.
A. Government payments for goods produced by foreign firms
B. Government payments for goods produced by firms owned by state of local governemnt
C. Government payments for welfare
D. All government payments are included in GDP
9 In the product market of the circular flow model.
A. Firms buy finished products from households.
B. Consumers buy factors of production from firms
C. Firms Sell factors of production to the government
D. Consumers buy finished products from firms
10 The three main components of the aggregate demand aggregate supply model include.
A. AD, SRAS, LM
B. SRAS, LRAS, IS
C. AD, IS, LM
D. AD, SRAS, LRAS

Test Questions

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