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

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PPSC Economics Topic 3 Macro Economics

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Question # 1

The long run aggregate supply curve

Question # 2

Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.

Question # 3

According to classical economists unemployment rises in recessions due to an increase in ______ unemployment , not in _______ unemployment.

Question # 4

In the Keynesian model in the long run a decrease in the money supply will cause ___ in the interest rate and _____ in the price level.

Question # 5

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

Question # 6

The nominal interest rate minus the inflation rate is the

Question # 7

Which one of the following would cause demand pull inflation.

Question # 8

Which of the following is the second law of gossen.

Question # 9

A rise in the price of bond causes the yield of the bond to.

Question # 10

The equation for the LM curve is.

Question # 11

What adjusts to restore general equilibrium after a shock to the economy.

Question # 12

Fractional unemployment arises when

Question # 13

The costs of disinflation would be low if

Question # 14

Peaks and trough of the business cycle are known collectively as.

Question # 15

Firms hire labor at the point where the

Question # 16

Which of the following macro economics variables is a cyclical.

Question # 17

An increase in the real wage rate will cause

Question # 18

Which of the following solutions does the economist suggest to cost inflation in higher education.

Question # 19

According to classical economists the economy.

Question # 20

When a person received an increase in wealth, what is likely to happen to consumption and saving.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An expansionary supply side shock results in.
A. An increased real national income
B. The aggregate supply curve shifting to the left
C. The aggregate demand curve shifting to the right
D. The aggregate demand curve shifting to the left
2 Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i
A. Raises it because the future marginal productivity of capital is higher
B. Lowers it because the future marginal productivity of capital is lower
C. Raises it because the user cost of capital is now lower
D. Lowers it beacause the user cost of capital is now higher
3 The regression results indicate that the standard error of estimate is.
A. 135.94
B. 16.06
C. 28.98
D. 4.27
4 Using the Keynesian model the effect of an increase in the effective tax rate on capital would be to cause _________ in the real interest rate and ______ in output in the short run.
A. A decrease ; a decrease
B. A decrease ; no change
C. No change ; a decrease
D. An increase ; an increase
5 The hypothesis would the tested with
A. A two tailed test
B. A one tailed test with the rejection region in the left tail
C. a one tailed test with the rejection region on the right tail
D. The normal distiribution
6 What is the average money balance according to the square root rute if income is Rs.1500, each transaction cost is Rs.4, and the opportunity cost of holding money is.2%
A. 387
B. 50
C. 175
D. 203
7 An expenditure increasing policy would consist of an increase in
A. Import tariffs
B. Import quotas
C. Governmental taxes
D. The money supply
8 Expansionary monetary policy
A. Tends to lead to an appreciation of nation's currency
B. Usually has no effect on a currency's exchange value
C. Tends to lea dto a depreciation of the currencies of other nations
D. Tends to lead to a depreciation of a nation's currency.
9 The IS curve shows the combinations of output and the real interest rate for which.
A. The goods market is in equilibrium
B. The labor market is in equilibrium.
C. The financial assets market is in equilibrium
D. An increase in output will cause the market clearing interest rate to be bid up.
10 An increase labor supply would cause the IS curve to.
A. Shift up and to the right
B. Shift down and to the left
C. Remain unchanged
D. Shift up and to the right only if people face borrowing constraints

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