PPSC Economics Chapter 3 Macro Economics With Answers

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PPSC Economics Chapter 3 Macro Economics

Sr. # Questions Answers Choice
1 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 shift in the consumption function A shift in government expenditures A change in liquidity preference A change in a government expenditures
2 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 . 250 900 450 350
3 To avoid double counting when the GNP is estimated, economists Price all goods and services bought and sold in all markets Use the GNP deflator Price only intermediate goods Calculate value added at each stage of production.
4 Characteristics of economic laws are Mere statement of economic tenduencies Less certain Hypothetical All of the above
5 Which of the following will not result in an increase in the level of income. An increase in autonomous spending A decrease in autonomous taxes An increase in autonomous transfers an increased in net tax revenues
6 Dynamic multipliers occur when the assumption of ceteris paribus is dropped The economy is not in equilibrium Consumption is unrelated to disposable income there is lagged response between consumption and disposable income
7 A change in autonomous spending is represented by. A movement along a spending line A shift of a spending line A change in a behavioral coefficient. None of these
8 When the marginal propensity to consume is 0.75 the multiplier has a value of. 4 5 3 2
9 The valued of expenditure multiplier relates. The change in autonomous spending to the change in income the change in consumption to change in income The change in come to the change is consumption The change in income to the change in autonomous spending.
10 By definition, the marginal propensity to consumes. Equals OC/A Yd Is the behavioral coefficient c in the equation C = C + cYd Is the slops of the consumption function. All of the above
11 When planned saving equals Rs.40+0.20 Yd and planned investment is rs. 60, the equilibrium level of income in. Rs. 100 Rs. 400 Rs.500 Rs.1000
12 When planned consumption equals Rs. 40 + 0.90 Yd and planned investment is Rs.50, the equilibrium level of income is. Rs.90 Rs.400 Rs.500 Rs.900
13 When the value of output exceeds planned spending . There is unsold output, and the level of income will fall there is unsold output and the level of income will rise There is unsold output, and the level of income does not change. All of the above
14 When planned saving is greater than planned investment. Output should increase Output should decrease Output should not change All of the above
15 Equilibrium occurs in a two sector model when Saving equals investment. Consumption plys investment equals the value of putput Planned saving equals planned investment. Aggregate spending equals the revenues of the business sector
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. Rs.2000 Rs.1400 Rs.1000 Rs.750
17 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. Rs. 500 Rs.480 Rs. 470 Rs.400
18 Which of the following is not included in gorses investment. Business and residential constrcution. Expenditures on consumer goods Additions to business inventory Expenditures on machinery
19 In a model in which there is no government new investment capital replacement or international trade the market value of final output equals. Aggregate consumption The sum of the receipts of economic resources The sum of wages rent interest and profit All of the above
20 In a private sector model Household saving is a leakage from the circular flow Investment is a spending injection All of the above None of the above
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