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

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PPSC Economics Topic 3 Macro Economics

00:00
Question # 1

The valued of expenditure multiplier relates.

Question # 2

Keynes considered subjective and objective factors.

Question # 3

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

Question # 4

The value of a producer's output minus the value of the inputs if purchases from other producers is called the producer's

Question # 5

Banks can create money

Question # 6

An increase in the expected future marginal product of capital would cause the IS curve to.

Question # 7

The aggregate demand curve

Question # 8

Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock

Question # 9

What is the possible cause for a falling real GNP over a period of time.

Question # 10

The aggregate supply of labor is the

Question # 11

If the expected rate of inflation rose at the same time the natural rate of unemployment rose the Philips curve.

Question # 12

According to Keynesian macro economics price adjust _____ to shocks, so the government should.

Question # 13

In the long run, an increase in productivity would cause output to _________ and the aggregate price level to

Question # 14

Economists use the phrase ceteris paribus to express the assumption.

Question # 15

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.

Question # 16

An increase in investment leads to an increase in income and consumer spending, which in turn leads to a further increase in investment spending This is example of.

Question # 17

A change that increase real money demand relative to the real money supply causes.

Question # 18

in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.

Question # 19

Which of the following changes shifts the SRAS curve up.

Question # 20

The dynamic aggregate demand schedule shifts rightward when there is an increase in.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 When an increase in government spending is matched by an equal decrease in government transfers the income level will.
A. Stay the same
B. Increase
C. Decrease
D. None of these
2 The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.
A. Foreign capital flows to the U.S.
B. The U.S. dollar appreciates
C. Real net exports decline
D. American real GNP experience a slower rate of growth
3 An expenditure reducing policy would consist of a decrease in
A. The par value of a currency
B. Government expenditures
C. Import duties
D. Business or household taxes
4 Which of the following will not result in an increase in the level of income.
A. An increase in autonomous spending
B. A decrease in autonomous taxes
C. An increase in autonomous transfers
D. an increased in net tax revenues
5 A change that increases the real money supply relative to real money demand causes.
A. The LM curve to shift down and to the right.
B. The LM curve to shift up and to the left
C. The IS curve to shift down and to the left
D. The IS curve to shift up and to the right.
6 The sign of the simple correlation coefficient is determined by
A. The intercept of the least squares equation.
B. The slope of the least squares equation
C. The appropriate economic theory.
D. The researcher
7 If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.
A. Increase by Rs.16
B. Decrease by Rs.16
C. Increase by Rs.40
D. Decrease by Rs.30
8 The main cause of cyclical unemployment is that.
A. Firms engage in race gender and sex discrimination in their hiring practices.
B. Some induvial do not have marketable job skills.
C. the level of overall economic activity fluctuates
D. Workers offer voluntarily quit a job to look for a better job.
9 A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.
A. New Keynesians
B. Keynesians
C. Monetarists
D. The Classical shool
10 Economists use the phrase ceteris paribus to express the assumption.
A. All else equal
B. Everything affects everything else.
C. Scarcity is a fact of life
D. There is no such thing as a free lunch

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