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

In a simple Keynesian world assume the economy is opiating at a full employment noninflationary level worsening world conditions necessitate additional government spending of Rs.50 billion. What should be the direction of change in taxes and magnitude of change to maintain stable price and full employment equilibrium.

Question # 2

Capital goods are

Question # 3

At point of satiety marginal utilityis.

Question # 4

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

Question # 5

A group of modern economists who believe that price and wage rigidities do not provide the only rationale for macroeconomic policy activism are called.

Question # 6

Firms hire labor at the point where the

Question # 7

As the economy nears full capacity the short run aggregate supply curve

Question # 8

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

Question # 9

The valued of expenditure multiplier relates.

Question # 10

Which of the following is not included in gorses investment.

Question # 11

When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.

Question # 12

Which of the following changes shifts the SRAS curve up.

Question # 13

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 # 14

The regression results indicate that the standard error of estimate is.

Question # 15

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

Question # 16

A rise in the exchange rate value of the rupee will most likely cause.

Question # 17

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 # 18

If the Nominal GNP of an economy rose from Rs. 5000 to 5500 between 1985 and 1986 while the price index rose from 100 to 110 during the same period real GNP

Question # 19

By definition, the marginal propensity to consumes.

Question # 20

Which one of the following would cause demand pull inflation.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 A nation experiences internal balance if it acieves.
A. Full employment
B. Price stability
C. Full employment and price stability
D. Unemployment and price instability
2 Which of the following actions is an example of expansionary fiscal policy.
A. A decrees in welfare payments
B. A purchase of government scantiest in the open market
C. A decrease in the Bank rate
D. A decrease in the corporate profits tax rates
3 When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.
A. The interest rate will rise
B. The interest rate will decline
C. The price level will not change
D. Investment will decline
4 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve.
A. slopes upward
B. Sloped downward
C. Is vertical
D. Is horizontal
5 The low point in the business cycle is referred to as the
A. Expansion
B. Boom
C. Trough
D. Peak
6 A decline expected future output 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 constratints.
7 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
8 Which of the following is not a category of consumption spending in the national income accounts.
A. Consumer durables
B. Non durable goods
C. Services
D. Housing Purchases
9 All of the following are obstacles to international economic policy coordination except.
A. Different national objectives are institutions
B. Different national political climates
C. Different phases in the business cycle
D. Different national currencies.
10 While resources and products flow in one direction of the circular flow model what flow the other direction.
A. Services
B. Public goods
C. Money
D. Imported goods

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