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

The substitution effect of a decrease in real interest rates is to cause a consumer to.

Question # 2

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

Question # 3

From a Keynesian perspective business investment will de cline as a result of.

Question # 4

Which of the following changes shifts the AD curve up and to the right.

Question # 5

If sales are forecasted using an adaptive expectations model where the coefficient of adjustment .2, the sales forecast for 1986 is.

Question # 6

Which of the following represents monetary policy geared to increases the supply of money.

Question # 7

Marginal utility is equal to average utility at that time when average utility is.

Question # 8

Assuming that money is neutral an increase in the nominal money supply would causes.

Question # 9

The aggregate supply of labor is the

Question # 10

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

Question # 11

If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.

Question # 12

Based on the data above , the increase in potential MI would be

Question # 13

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

Question # 14

A decrease in wealth would cause the IS curve to

Question # 15

The negative relation ship between unemployment and inflation is know as the

Question # 16

Which of the following factors will cause the demand curve for labor to shift to the right.

Question # 17

In the Keynesian model in the short run a decrease in government purchases causes output to _____ and the real interest rate to.

Question # 18

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

Question # 19

You are gold the level of savings in the economy is Rs.25 billion of equilibrium Using the consumption function C =20 + .9 Y, find equilibrium income .

Question # 20

When planned saving is greater than planned investment.

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PPSC Economics Chapter 3 Important MCQ's

Sr.# Question Answer
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.
A. Increase by Rs.50 billion
B. Increase by more than Rs. 50 billion
C. Increase by less than Rs.50 billion.
D. Decrease by more than Rs.50 billion.
2 A commercial bank has a required reserve ratio of 20% and desires to hold 5% in excess reserves. the bank receives a Rs. 10,000 deposit. It it abides by the required reserve ration and its desire to hold excess reserves the bank can make a loan of a most.
A. Rs.7500
B. Rs.2500
C. Rs.5000
D. Rs.30,000
3 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward.
A. SRAS
B. AD
C. LRAS
D. None of the above
4 Which of the following macroeconomic variables is procyclical and lags the business cycle.
A. Business fixed investment
B. Empolyment
C. Stock prices
D. Nominal interest rates
5 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
6 Suppose there is full employment and positively sloped aggregate supply schedule A decrees in taxes increases.
A. The price level and real output
B. the prie level but has no effect on real output
C. Real output but has no effect on the price level
D. The nominal and real wage
7 When the export function is Rs.100-0.2 Y , net exports are 0 when income is .
A. Rs.300
B. Rs.400
C. Rs.500
D. Rs.600
8 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
9 If GNP = 1,000 billion and the money supply is 330 billion , then the velocity of money is.
A. A value less than 1.4
B. 3.33
C. 1.48
D. 3.03
10 In the long run, an increase in productivity would cause output to _________ and the aggregate price level to
A. fall ; rise
B. fall ; fall
C. rise ; fall
D. rise ; rise

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