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

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Question # 1

A decline expected future output would cause the IS curve to.

Question # 2

The appropriate expenditure switching policy to correct a balance of payments deficit is.

Question # 3

If X becomes more expansive i relation to Y, what happens to the budget line in the X - Y space, with Y on the vertical axis.

Question # 4

The nominal interest rate minus the inflation rate is the

Question # 5

Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.

Question # 6

In the Keynesian model short run equilibrium occurs where

Question # 7

When aggregate economic activity is declining , the economy is said to be in.

Question # 8

If personal income equals Rs.570 white personal income takes equal Rs.90 consumption is Rs.430. interest payments total Rs. 10 and personal saving is Rs. 40, disposable income equals.

Question # 9

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 # 10

The aggregate supply of labor is the

Question # 11

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

Question # 12

In long run a reduction in labor supply would cause output to __ and the aggregate price level to.

Question # 13

In the Keynesian model in the long run an increase in the money supply will raise

Question # 14

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

Question # 15

In the long run an increase in consumer spending would cause output to ________ and the price level to.___________

Question # 16

Capital goods are

Question # 17

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

Question # 18

Equilibrium occurs in a two sector model when

Question # 19

The monetary base in composed of.

Question # 20

Country A 's GNP is increasing by 3% a year in contrast to its population growth of 2.4% The rate of growth of per capita GNP is.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 According to Okun's law an increase in the unemployment rate will cause_______ in the level of empolyment and __ in the level of output.
A. An increase ; an increase
B. An increase; a decrease
C. A decrease ; an increase
D. a decrease ; a decrease
2 A decrease in the effective tax rate on capital would cause the IS curve to.
A. Shift up and to the right
B. shift down and to the left
C. Remain unchanged
D. Remain unchanged if taxes are fully deducible from income otherwise, shift up and to the right
3 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.
4 Which of the following will cause a monetary induced change versus a fiscal induced change in equilibrium income as determined.by IS - LM analysis.
A. A shift in the consumption function
B. A shift in government expenditures
C. A change in liquidity preference
D. A change in a government expenditures
5 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
6 Which policy is an expenditure switching policy.
A. Increase in the money supply
B. Decrease in government expensitures
C. Increase in business and household taxes
D. Decrease in import tariffs
7 The dynamic aggregate demand schedule shifts rightward when there is an increase in.
A. The expected rate of inflation ceteris paribus
B. The growth rate of the nominal money supply ceteris paribus
C. The income tax rate ceteris paribus
D. the current inflation rate celeries paribus
8 If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75
A. 60
B. 200
C. 250
D. 240
9 Which of the following procedures is included in the process that produces a value for disposable personal income
A. subtracting excies and sales taxes
B. Subtracting nonbusiness interest
C. Subtracting transfer payment from government.
D. subtracting income taxes
10 A mathematical expression relating the amount of output produced to quantities of capital and labor utilized is the.
A. Real interest rate
B. Productivity relation
C. Production function
D. Marginal product

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