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

00:00
Question # 1

In market economics the incentive that draws entrepreneurs into industry is.

Question # 2

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 # 3

In the expenditure approach to GDP which of the following would be excluded from measurement of GDP.

Question # 4

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

Question # 5

Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.

Question # 6

An invention that speeds up the internet is an example of.

Question # 7

When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.

Question # 8

Full- employment output is the level of output that firms in the economy supply when

Question # 9

A temporary adverse productivity shock would.

Question # 10

When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in.

Question # 11

A nation experiences internal balance if it acieves.

Question # 12

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

Question # 13

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

Question # 14

The multiplier that applies to changes in autonomous investment is identical to changes in.

Question # 15

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

Question # 16

An expenditure reducing policy would consist of a decrease in

Question # 17

In the short run an increase in export sales would cause output to ______ and the price level to.

Question # 18

The valued of expenditure multiplier relates.

Question # 19

The main cause of cyclical unemployment is that.

Question # 20

Which of the following is incorrect with respect to the consumption diagram.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
1 An increase in the marginal propensity to import.
A. Has the some effect upon the multipliers as an increase in the MPC
B. Has no effect upon the multipliers
C. Increases the value of the multipliers
D. Decreases the value of the multipllers
2 According to the efficiency wage model during a recession firms will not reduce real wages because.
A. Unions would go on strike reducing profitability
B. This would reduce worker effort and productivity.
C. The equilibrium real wage has increased
D. Legally, they can't
3 Which of the following changes shifts the AD curve down and to the left.
A. A temporary increase in government purchases.
B. A rise in the nominal money supply
C. A decrease in corporate taxes
D. A decrease in consumer confidence
4 The aggregate demand curve shows the combinations of output and the price level that put the economy on.
A. The FE line and the IS curve
B. The FE line The IS curve and the LM curve
C. The IS curve
D. The IS curve and the LM curve
5 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical.
A. SRAS
B. AD
C. LRAS
D. None of the above
6 When aggregate economic activity is declining , the economy is said to be in.
A. A contraction
B. An expansion
C. A trough
D. A turning point
7 When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.
A. Is unrelated to the rate of interest
B. Is positively related to the rate or interest
C. Inversely related to the rate of interest
D. Falls as the rate of interest decreases
8 The Keynesian theory is consistent with the business cycle fact that inflation is
A. Procyclical and leading
B. Procyclical and lagging
C. Countercyclical and leading
D. All of these
9 Which of the following events would lead to an increase in the marginal product lf labor for every equantity labor.
A. An increase in the real wage
B. A decrease in the real wage
C. A favorable supply shock such as a fall in the price of oil
D. an adverse supply shock such as a reduced supply of raw materials.
10 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.

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