PPSC Economics Topic 4 Monetary & Fiscal Policy

Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test

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Shiza Amir 25 - May - 2022 02 Min 08 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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zaheer hussain 18 - Jan - 2024 14 Min 06 Sec 11/20
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Mahnoor NaSir 24 - May - 2022 07 Min 27 Sec 9/20

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	A business cycle refers to.	A. Fluctuations in the general price level B. changes in the long term growth pattern of the CPI C. The ups and downs of real GDP D. Fluctuations in the level of corporate.
2	Consider the five panels of the figure on the previous page in which panel would fiscal policy be the strongest.	A. Panel b B. Panel c C. Panel a D. Panel d
3	As the interest sensitivity of investment spending increase.	A. Monetary policy has a larger effect on output B. Fiscal policy has a larger effect on output C. The multiplier increases D. All of the above
4	In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.	A. up ; rise B. up ; fall C. down ; rise D. down ; fall
5	Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve.	A. Left ward ; LM B. Right ; LM C. Left ward ; IS D. Left ward ; AD
6	Fiscal policy refers to the manipulation of government income and expenditure to.	A. control the volume and price of money B. Limit the rate of increaes in incomes C. Effect the value of the dollar on world financial market. D. Affect the level of total expenditure output and employment
7	Knowledge of the money supply can lead to good predications of nominal GDP only	A. If the price level is stable B. If the money supply is stable C. Over very short periods of time D. If the determinants of velocity are known
8	A decrease iin money demand other thing equal shifts the _____ curve to the	A. IS ; right B. Is ; Left C. LM ; Left D. LM ; Rfight
9	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.	A. Increase G by Rs.1,000 B. Decrease G by Rs.250 C. Increase G by less than Rs.100 D. Decrease G by more than Rs.250 but less than Rs.1000
10	Monetary policy can affect output.	A. this statement is always true B. This statements always false C. This statement is true only in the short run D. This statement is true only in the medium run and the long run

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PPSC Economics Topic 4 MCQS Test Preparation

MCQ's Test For PPSC Economics Topic 4 Monetary & Fiscal Policy

PPSC Economics Topic 4 Monetary & Fiscal Policy

An expansionary monetary policy

Consider the five panels of the figure on the previous page in which panel would the simultaneous imposition of restrictive monetary policy and expansionary fiscal policy cause the largest increase in interest rates.

using money as a medium of exchange.

a contractionary monetary policy

The ratio of debt to GDP will be larger

As a result of the increase in government expenditures disposable income increases by.

If the nominal money supply doubles while real money demand is unchanged what happens to the price level.

If the money supply change was correctly and fully anticipated for a change of M to MI new classical macroeconomics under the assumption of rational expectations would predict a movement from.

Commercial banks

The rate of which central bank lends to commercial banks is known as

The quantity of money demanded varies.

The investment demand curve shows the relationship between the levels of.

Which of the following measures is the best measure of money as a medium of exchange.

If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.

You know that all taxes are distortionary under what conditions will this knowledge lead you to appose the imposition of every single tax in the economy.

If the Bank of Pakistan wished to pursue a tight monetary policy is would.

At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.

A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall.

An autonomous increase in the value of the domestic exchange rate.

A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to.

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Topic Test

Top Scorers Of PPSC Economics Topic 4 Monetary & Fiscal Policy MCQ`s Test

PPSC Economics Chapter 4 Important MCQ's

Test Questions

At any given level of the interest rate expectations are likely to be_ optimistic and planned investment is likely to be when _ is growing rapidly than when it is growing slowly or falling.

A decline in the money______ shifts the LM curve to the causing the interest rate to rise and output to fall.