PPSC Economics Topic 3 Macro Economics

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  • Chapter NameMacro Economics

PPSC Economics Topic 3 Macro Economics

  • Total Questions20

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PPSC Economics Topic 3 Macro Economics

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Question # 1

An increase in the expected real interest rate tends to.

Question # 2

An increase in the expected future marginal product of capital would cause the IS curve to.

Question # 3

The regression equation for consumption as a function of disposable income is C = -60 + 0.90Y .the standard error of Y is 30 and the standard error of estimate is 9.5 What is the 95% confidence interval for C when Y is Rs. 1000 billion.

Question # 4

If the sampi is accepted as coming from a universe with a mean of Rs.500 or greater when if doesn't.

Question # 5

In the long run an increase in government purchases of military equipment would cause output to _________ and the aggregate price level to

Question # 6

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

Question # 7

A decrease in the marginal propensity to import will lead to.

Question # 8

Which of the following is an example of a productivity shock.

Question # 9

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

Question # 10

Which of the following actions is an example of expansionary fiscal policy.

Question # 11

Given the Is -LM construction of the figure above an unexpected increase in the price level, in the absence of any policy adjustment will.

Question # 12

The long run foreign exchange rate between the U.S. and Japan is 200 Yen =Rs. 1 under a floating exchange rate Which of the following does 112 t occur if the Federal Reserve reduce the money supply in order to prevent the occurrence of inflation.

Question # 13

The long run aggregate supply curve

Question # 14

Which of the following changes shifts the SRAS curve down.

Question # 15

The costs of disinflation would be low if

Question # 16

Which of the following is the second law of gossen.

Question # 17

When a British pound equals Rs. 1.60 and the French France equals Rs. 0.40 the ability to earn infinite profit if it were not the case, implies that the exchange rate would be.

Question # 18

Using the Keynesian model the effect of an increase in the effective tax rate on capital would be to cause _________ in the real interest rate and ______ in output in the short run.

Question # 19

The monetary base in composed of.

Question # 20

Which of the following changes shifts the long run aggregate supply curve to the right.

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