PPSC Economics Ch 4 Monetary & Fiscal Policy

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

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PPSC Economics Chapter 4 Monetary & Fiscal Policy Preparation Online Test

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

PPSC Economics Chapter 4 Monetary & Fiscal Policy

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

Money and income are.

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.

How much of the Rs.5 billion dollar increase in government expenditures will be recouped in taxes.

An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the

In the money market a condition of excess supply of money cna be eliminated by a _________ in aggregate output or a __ in the interest rate , both of which increase the quantity of money demanded.

Which of the following causes M1 demand to decrease.

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

In the money market a condition of excess demand for money can be eliminated by a __________ in aggregate output or a ____ in the interest rate both of which reduce the quantity of money demanded.

An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____

Disposable income is obtained by subtracting ________ taxes from personal income

The relation between M2 and inflation is tighter than the relation between M1 and inflation because.

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.

Equilibrium in the money markets can be expressed by the equation i = 9k/h) Y -M/h. The slope of LM decrease when

A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.

Those who favor setting the target rate of inflation at about 3% believe.

Automatic stabilizers

Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization This function of money is called.

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.

The use of money is more efficient than barter because the introduction of money

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PPSC Economics Chapter 4 Test

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Test Questions

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In the money market a condition of excess supply of money cna be eliminated by a _______ in aggregate output or a in the interest rate , both of which increase the quantity of money demanded.

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

In the money market a condition of excess demand for money can be eliminated by a ______ in aggregate output or a in the interest rate both of which reduce the quantity of money demanded.

An increase in oil prices, such as the oil shocks in the 70 s, lead to ___ there by causing _

A tax increase ______ disposable income consumption expenditure and shifts the IS curve to the.