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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khurram shazzz 02 - Mar - 2022 04 Min 47 Sec 18/20
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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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Ayesha siddiqa 02 - Jul - 2021 19 Min 10 Sec 17/20
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Tayyeba 29 - Jun - 2021 09 Min 28 Sec 16/20
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Funny world with amazing facts 22 - Apr - 2022 06 Min 10 Sec 15/20
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sidra Naeem 22 - May - 2022 13 Min 44 Sec 13/20
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Abdul Qayyum 25 - May - 2024 07 Min 53 Sec 12/20
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Hassan Mehmood 03 - Apr - 2022 08 Min 20 Sec 12/20
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Shama Suleman 21 - May - 2022 12 Min 21 Sec 12/20
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Amjad Ali 07 - Jun - 2023 12 Min 49 Sec 12/20
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Shad Ali Shah 27 - Jul - 2024 15 Min 17 Sec 12/20
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DJ DJ 12 - Aug - 2022 11 Min 02 Sec 11/20
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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

Sr.#	Question	Answer
1	Other things equal a decrease in autonomous consumption shifts the _____ curve to the	A. IS ; RIGHT B. IS ; Left C. LM ; Left D. LF ; Right
2	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
3	Which of the following is not an important variable in growth accounting calculations.	A. Productivity growth B. Money supply growth C. Labor growth D. Capital growth
4	A change in the money supply has a greater effect upon equilibrium income.	A. The more interest sensitive private sector spending is. B. The less interest sensitive private sector spending is. C. The smaller the expenditure multiplier is D. The more interest sensitive money holdings are to the rate of interest.
5	If the demand for money increase relative to the supply of money	A. Interest rates will trend upward B. Interest rates will trend downward C. Interest rates are not affected by increases in money demand D. Interest rates will behave randomly
6	an asset that can easily be exchanged for goods and services is called a.	A. Financial asset B. Barter like asset C. Illegitimate asset D. Liquid asset
7	In the Keynesian cross diagram, a decline in autonomous consumer 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
8	If there is a financial panic and increased uncertainty about the return in the stock market and bond market what is the likely effect on money demand.	A. Money demand declines first then rises when inflation increases B. Money demand rises C. The overall effect its ambiguous D. Money demand declines
9	An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the	A. rise ; LM ;right B. rise ; IS ; right C. fall ; LM, Left D. rise ; IS ; Left
10	"The problem with monetarism is that its advocates have seen it as infallible over short periods of time and wish it to be rigid in its application over all periods of time "The advocates of monetarism wish it to the rigid in its application over all periods of time to.	A. Weaken fiscal policy B. Avoid monetary policy errors C. Strengthen the impact of monetary policy D. Ensure the independence of the central bank
11	The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.	A. Fiscal drag B. The Laffer curve C. Bracket creep D. Debt burden
12	A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______	A. rise ; LM ;right B. rise ; IS ; right C. Fall ; LM ; left D. rise ;IS; right
13	According to classical models, the level of employment is determined primarily by	A. The level of aggregate demand for goods and services B. Prices and wages C. Government taxation D. Government spending
14	In the Keynesian cross diagram a decline 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	A. rise,; left B. rise ;right C. fall ; left D. fall ; right
15	One of money's primary roles in the economy comes from the use of money to transfer purchasing power to the future This role of money is called.	A. store of value B. Unit of account C. Medium of exchange D. Standard of deferred payment
16	An increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.	A. Revenue from value added tax B. Level of company profits C. Level of unemployment D. Average level of wages
17	When considering any kind of economics indicator, prices are important because.	A. They reflect the value of goods and services. B. They are established by the government to control population 's needs C. They categorize goods and services by their weight D. Historically they have proved to the good predictors of futures unemployment.
18	In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.	A. A relative large increase in Y, a smaller increate n P B. A relative large increase in P, a smaller increase in Y C. Both Y and P increasing with an percentage D. Only Y increase
19	A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______	A. decreases ; rise B. decreases ; fall C. Increases ; rise D. Increase ; fall
20	In an economy experience high interest rates and high unemployment The ISLM frame work predicts that _________ policy has been too.	A. fiscal ; expansionary B. fiscal ; contractionary C. monetary ; expansionary D. monetary ; contractionary

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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

Under a fixed exchange rate system an expansionary fiscal policy leads to a

If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left.

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

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.

Believers in the monetarist rule assert that

Commercial banks

a contractionary monetary policy

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.

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.

You move some of your savings account balance into your checking account.

The equilibrium level of saving is.

Money or paper currency serves at least _______ functions.

Automatic stabilizers

The purpose of financial intermediaries is.

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

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.

Which of the following causes M1 demand to decrease.

According to the Laffer curve as tax rates increase tax revenues.

A state of government bonds by the central bank should cause

When the reserve requirement on checking deposits is 0.10 and the Federal Reserve purchases government securities values at Rs. 100,000, the MI money supply.

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

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If the Federal reserve conducts open market the money supply shifting LM curve to the left.

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.