PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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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	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
2	The ____ lag for fiscal policy is generally _____ than it is for monetary policy.	A. Recognition ; shorter B. Recognition ; longer C. Implementation ; shorter D. Implementation ; longer
3	A major advantage of monetary over fiscal policy is that monetary policy	A. Can be put into effect more quickly B. Affects all sectors of the economy equally C. Authorities are quicker to see the need for policy D. Has a more direct and predictable impact on spending.
4	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
5	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
6	Which of the followig does not shift the IS curve .	A. An increases in autonomous consumption B. An increase in government spending. C. A decline in government spending D. A fall in theinterest rate
7	Automatic stabilizers	A. Counter balance fluctuations in economic activity. B. Reinforce fluctuations in economic activity C. Do not occur when the economy falls into recession D. Reduces the size of the deflationary gap
8	The purpose of financial intermediaries is.	A. To allow more saving than investment B. To discourage consumption spending C. To collect income taxes for the government D. To serve are middlemen between savers and borrowers.
9	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 ______ and the equilibrium level of aggregate output to ______	A. up ; rise B. up ; fall C. down ;rise D. down ; fall
10	The contractionary effect on private investment spending due to financing requirements of government deficit pushing up interest rates is known by this term.	A. Crowding out B. Recognition lag C. Public sector borrowing requirement D. Fiscal drag

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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

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

The central bank and the government are working against each other if as the government cuts taxes the central bank

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.

An autonomous increase in money demand.

What technical terminology do economists use to refer to how much the money will multiply as this process unfolds.

A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.

Despite an expansionary monetary policy an economy experiences a recession the recession could occur in spite of the right ward shift of the LM curve if

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

Which of the following part of M1

A checking deposit held at a commercial bank is considered ______ of that bank.

According to the supply side model a reduction in the tax rate.

Factors that cause the IS curve to shift include.

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

An increase in expected inflation is likely ot cause.

If the Central Bank wanted to decrease the quantity of money held by the public it would.

What's the most common way for a central bank to reduce the money supply.

The economic logic behind granting central bank's independence from governmental the conduct of monetary policy is.

using money as a medium of exchange.

The intersection of the IS and LM curves captures.

A Political problem with discretionary fiscal policy is the.

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

PPSC Economics Chapter 4 Important MCQ's

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