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PPSC Economics Topic 3 Macro Economics
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Total Questions20
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Time Allowed20
PPSC Economics Topic 3 Macro Economics
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Question # 1
If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.
Question # 2
Wars new inventions, harvest failures, and change sin government policy are examples of.
Question # 3
Characteristics of economic laws are
Question # 4
Ahmed uses dummy variables in order to determine the monthly seasonal effect in her regression model. The number of dummy variables used will be.
Question # 5
An increase in the number of workers hired by a firm could result from
Question # 6
Banks can create money
Question # 7
The short run aggregate supply curve the absence of misperceptions.
Question # 8
An increase in the real wage rate will cause
Question # 9
If the economy is in equilibrium at Rs. 180 billion and taxes are reduced by Rs.20 billion, find the new equilibrium given that this is a simple economy i.e. exogenous government spending tax collection and investment spending and a marginal propensity to consume of . .75
Question # 10
When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward.
Question # 11
Which of the following will cause a monetary induced change versus a fiscal induced change in equilibrium income as determined.by IS - LM analysis.
Question # 12
Which of the following is an example of a productivity shock.
Question # 13
According to Keynesian macro economics price adjust _____ to shocks, so the government should.
Question # 14
According to the efficiency wage model during a recession firms will not reduce real wages because.
Question # 15
Equilibrium occurs in a two sector model when
Question # 16
A situation in which expansionary in monetary policy has no effect on the economy is known as.
Question # 17
Total factor productivity growth is that part of economic growth due to.
Question # 18
In the short run in the Keynesian model a sharp increase in oil prices would leave the economy with a ____ level of output and a ______ real interest rate.
Question # 19
If the foreign interest rate is 12% while the domestic interest rate in 95 then the forward premium will be.
Question # 20
Changes in subjective or objective factors.
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