PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	In the Keynesian corss diagra, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up 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
2	Factors that cause the IS curve to shift include.	A. Changes in autonomous consumer spending B. Changes in government spending C. Changes in investment spending related to business confidence D. All of the above
3	According to Marshall the basis of consumer surplus is.	A. Law of diminishing marginal utility. B. Law of equal marginal utility C. Law of proportions D. All of the above
4	The quantity of money demanded varies	A. Directly with both prices and output B. Inversely with both prices and output C. Directly with prices and inversely with output D. Inversely with prices and directly with output
5	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
6	Which of the following persons would be considered unemployed.	A. a house wife B. A person who worked more than 20 hours in a family owned business C. A 15 years old looking for summer employment D. A recent college graduate looking for her fist job
7	Those who favor setting the target rate of inflation at about 3% believe.	A. The cost of moderate inflation can be minimized by indexing the tax system and bonds B. that the cost of going to 0% is very low C. That moderate inflation increases money illusion D. Believe that moderate inflation aggravates the time inconsistency problem
8	An increase in oil prices, such as the oil shocks in the 70 s, lead to _______ there by causing _____	A. A movement along the AS curve cost push inflation B. A leftward shift int he AS curve demand pull inflation. C. A right ward shift in the AS Curve cost push inflation D. a left ward shift in the AS curve cost push inflation
9	An example of nondiscretionary fiscal policy would be.	A. The operation of the welfare state B. A Federal jobs program adopted to stimulate consumption C. A tax cut adopted to stimulate consumption D. An interest rate cut implemented to stimulate consumption
10	An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the	A. right ; left B. right ; right C. left ; left D. left ; right

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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 increase in the rate of inflation which is not accompanied by any change in the volume of consumer goods sold will automatically increase the.

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

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

Other things equal a decrease in autonomous consumption shifts the _____ curve to the

Given fixed exchange rates assume Pakistan initiates contractionary monetary ad fiscal policies to combat inflation. these policies will also.

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

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

"Transactions" money is money used as a

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

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 _____the equilibrium level of aggregate output to fall and the IS curve to shift to the.

The equilibrium level of saving is.

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.

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.

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 decrease iin money demand other thing equal shifts the _____ curve to the

The opportunity cost of holding currency decrease when

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.

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.

Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.

If a perfectly competitive industry is in long run equilibrium all firms will

Prepare Complete Set Wise PPSC Economics Topic 4 Monetary & Fiscal Policy MCQs Online With Answers

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

PPSC Economics Chapter 4 Important MCQ's

Test Questions

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An increase in money demand other thing equal shifts the __ curve to the_

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

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.

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.

Keynes suggested that ____ income households consume a proportion of their income than income households.