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

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

Question # 2

Firms hire labor at the point where the

Question # 3

Which of the following does not result in an increase in U.S. autonomous net exports.

Question # 4

During inflation.

Question # 5

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 # 6

An expansionary supply side shock results in.

Question # 7

An IOU of the Federal Reserve Bank of Scan Francisco to Bank of America is called.

Question # 8

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

Question # 9

When total utility becomes maximum then marginal utility will be.

Question # 10

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

Question # 11

A nation experiences internal balance if it acieves.

Question # 12

An increase in the expected real interest rate tends to.

Question # 13

Friedman and phelps suggested that there should not be a stable relationship between inflation and unemployment, but here should be a stable relationship between

Question # 14

The fact that the Production function relating output to capital becomes flatter as we move from left to right means that.

Question # 15

When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is.

Question # 16

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 # 17

According to Keynesians the primary source of business cycle fluctuation is.

Question # 18

The valued of expenditure multiplier relates.

Question # 19

If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.

Question # 20

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 When the economy goes into are cession there's an increase in.
A. Frictional unemployment
B. structural unemployment
C. Cyclical unemployment
D. Voluntary unemployment
2 If equilibrium national income is less than the full employment the gap can be closed by.
A. Raising taxes
B. Decreasing government expenditures
C. Raising taxes and decreasing government expenditures.
D. Increasing government expenditures.
3 In the efficiency wage model with the efficiency wage above the market clearing wage when employment is at its full employment level.
A. Labor supply equals labor demand
B. There is an excess supply of labor
C. there is an excess demand for labor
D. There could be either an excess demand for or an excess supply of labor
4 The impact of contractionary fiscal policy, according to new classical theory is that.
A. Real interest rates do not change
B. Aggregate demand increase
C. Current real output substantially decreases
D. The price level substantially increases.
5 According to the life cycle hypothesis consumption is related to.
A. Current income
B. Past peak income
C. Expected lifetime income
D. Price expectations over one's life time
6 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
7 The data indicates that country A in billions of rupees is experiencing a
A. A deficit of Rs.60
B. A surplus of Rs. 300
C. Deficit of Rs.900
D. A deficit of Rs. 500
8 Which of the following is not included in gorses investment.
A. Business and residential constrcution.
B. Expenditures on consumer goods
C. Additions to business inventory
D. Expenditures on machinery
9 As the economy nears full capacity the short run aggregate supply curve
A. Stagflation
B. Structural inflation
C. Demand side inflation
D. Supply side inflation
10 When planned saving is greater than planned investment.
A. Output should increase
B. Output should decrease
C. Output should not change
D. All of the above

Test Questions

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