PPSC Economics Chapter 4 Monetary & Fiscal Policy Preparation Online Test

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Punjab Public Service Commission, PPSC takes the competitive exam to offer the deserving candidates suitable positions in several governmental organizations. Candidates who are willing to apply for the coming PPSC examination session with the subject of Economics are advised to start their preparation as soon as possible. The reason behind this endorsement is that candidates with exceptional results secure suitable positions and the exceptional result is a result of exceptional preparation.

PPSC Economics Test Chapter 4 Syllabus

Monetary and Fiscal Policy is chapter IV in Economics subject for PPSC test. The chapter covers almost all the terms and differences between Monetary Policy and Fiscal Policy. After attempting several times the given PPSC online test, candidates will become able to know the important questions related to monetary and fiscal policy. The given Economics online test is comprised of the questions that are important according to the examination point of view. So, you are advised to attempt the given test several times to get a good grip on chapter IV of Economics subject.

PPSC Economics Ch. 4 Test

Online MCQ`s Test For Chapter 4 "PPSC Economics Chapter 4 Monetary & Fiscal Policy"

Try The MCQ`s Test For Chapter 4 "PPSC Economics Chapter 4 Monetary & Fiscal Policy"

  • Total Questions20

  • Time Allowed20

PPSC Economics Chapter 4 Monetary & Fiscal Policy

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Question # 1

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the.

Question # 2

"A monetary rule need not mean a single baid number If the central bank fears velocity shifts rules could be adopted for adjusting the target in the face of a trends change in velocity "If velocity were trending upward the target money growth rate would be adjusted.

Question # 3

The IS curve shifts to the left when

Question # 4

In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the

Question # 5

The near term effect of an unexpected sale of bonds by the central bank is.

Question # 6

A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______

Question # 7

Fiscal policy refers to the manipulation of government income and expenditure to.

Question # 8

Consider the five panels of the figure on the previous page in which of the five would monetary policy be the weakest.

Question # 9

The situation in which the imports are greater than exports is termed as.

Question # 10

In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.

Question # 11

"The earlier predictions underestimated currency in circulation and treasury balances at the Fed, both of which drained reserves from the banking system" Lower reserves means.

Question # 12

The function of money do not include.

Question # 13

Actual equilibrium is Rs. 1,500 billion and full employment is Rs. 2,500 MPC = 0.75 taxes are zero , and prices are adjustable To eliminate the observed deflationary gap , the government should.

Question # 14

An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the

Question # 15

In the Keynesian cross diagram a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to ______

Question # 16

In the ISLM frame work a contractionary fiscal policy causes aggregate output to ___________ and the interest rate to

Question # 17

An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the

Question # 18

An increase in expected inflation is likely ot cause.

Question # 19

In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift _____ the equilibrium level of aggregate output to fall, and the IS curve to shift to the.

Question # 20

A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

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PPSC Economics Chapter 4 Test

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