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 macro economic variables is the most seasonally pro cyclical. Expenditure on services The unemployment rate Expenditure on durable goods The real wage
2 Industries that are extremely sensitive to the business cycle are the. Durable goods and service sectors Nondurable goods and service sectors. Capital goods and nondurable goods sectors. Capital goods and durable goods sectors.
3 Which of the following macroeconomic variables is procyclical and lags the business cycle. Business fixed investment Empolyment Stock prices Nominal interest rates
4 Which of the following macro economics variables is a cyclical. Real interest rates Unemployment Money supply Consumption
5 Which of the following macro economic variables is procyclical and coincident with the business cycle. Residential investment Nominal interest rates Industrial production Unempolyment
6 An economic variable that moves in the opposite direction as aggregate economic activity up in is called. Pro cyclical Countercyclical A cyclical A leading variable
7 An economics variable that moves in the same direction as aggregate economic activity is called. Countercyclical Procyclical A cyclical A leading variable
8 Peaks and trough of the business cycle are known collectively as. Volatility Turning points Equilibrium point Real business cycle events
9 When aggregate economic activity is declining , the economy is said to be in. A contraction An expansion A trough A turning point
10 When aggregate economic activity increasing the economy is said to be in. An expansion A contraction A peak A turning point
11 The low point in the business cycle is referred to as the Expansion Boom Trough Peak
12 The through of a business cycle occurs when ______ hits its lowest point. Inflation The money supply Aggregate economic activity The unemployment rate
13 Which of the following changes shifts the SRAS curve down. An increase in the labor force An increase in the money supply A decrease in government purchases A decrease in firms costs
14 Which of the following changes shifts the long run aggregate supply curve to the right. A demographic change that increases the labor supply A decrease in the demand for labor An increase in consumer confidence A decrease in taxes
15 Which of the following changes shifts the SRAS curve up. Ani increases in the labor force A decrease in government purchases An increase in firms costs An increase in the money supply
16 The long run aggregate supply curve. Is vertical Slopes upward Is horizontal Slopes downward
17 The long run aggregate supply curve Is vertical slopes upward Is horizontal Slopes downward
18 The short run aggregate supply curve the absence of misperceptions. Is vertical Slopes upward Is horizontal Slopes downward
19 Which of the following changes shifts the AD curve up and to the right. A rise in the nominal money supply An increase in income taxes An increase in the risk on nonmonetary assets A decreasing the future marginal productivity of capital.
20 Which of the following changes shifts the AD curve down and to the left. A temporary increase in government purchases. A rise in the nominal money supply A decrease in corporate taxes A decrease in consumer confidence
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