PPSC Economics Topic 4 MCQS Test Preparation

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.

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

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

  • Total Questions20

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PPSC Economics Topic 4 Monetary & Fiscal Policy

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Question # 1

There are ______ methods of measuring GDP

Question # 2

How much of the Rs. 5 billion dollar increase in the government expenditures will be financed by bond sales.

Question # 3

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

Question # 4

When considering any kind of economics indicator, prices are important because.

Question # 5

In the ISLM frame work an expansionary fiscal policy causes aggregate output to _________ and the interest rate to.

Question # 6

"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 # 7

What happens to the money supply if the deficit is financed by selling bonds to the general public.

Question # 8

A major advantage of monetary over fiscal policy is that monetary policty.

Question # 9

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

Question # 10

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.

Question # 11

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

Question # 12

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

Question # 13

According to classical models, the level of employment is determined primarily by

Question # 14

An increase in money demand other thing equal shifts the ____ curve to the___

Question # 15

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.

Question # 16

A decrease in fully autonomous investment other things equal shifts the ______ curve to the

Question # 17

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 # 18

The purpose of fiscal policy is to

Question # 19

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

Question # 20

In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.

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PPSC Economics Chapter 4 Important MCQ's

Sr.# Question Answer
1 Which policies are expenditure changing policies.
A. Currency devaluation and revaluation
B. Import quotas and tariffs
C. Monetary and fiscal policy
D. Wage and price controls
2 Net taxes are.
A. Government expenditures minus government revenues.
B. Taxes paid by firms and households to the government minus the transfer payments made to firms and household.
C. Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds.
D. Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.
3 Increasing the government budget deficit.
A. Increases output in the long run
B. Decreases output in the short run
C. Decreases output in the long run.
D. Decreases the interest rate in the medium run.
4 The market price of bonds can fluctuate depending on
A. How many bonds were sold
B. Who bought the bonds
C. The amount of the coupon
D. The interest rate
5 Total utility of a commodity is measured by which price of that commodity.
A. Value in use.
B. Value in exchange
C. Both of above
D. None of above
6 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
7 If the central Bank wished to Tighten money is would.
A. Lower the discount rate
B. Sell government securities
C. Lower the legal reserve ratio
D. Lower the tax rate
8 An autonomous rise in __________ note causes by a change in the price level aggregate output of the interest shifts the _________ curve to the
A. Net exports LM right
B. Net exports LM left
C. Money demand IS right
D. Money demand LM left
9 A decrease in fully autonomous investment other things equal shifts the ______ curve to the
A. IS ; right
B. IS ; Left
C. LM ; Left
D. LM ; right
10 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

Test Questions

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