PPSC Economics Topic 4 Monetary & Fiscal Policy

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

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Shahida 01 - Sep - 2021 06 Min 25 Sec 17/20
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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

PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	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
2	A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the.	A. Increase; increases ; right B. Increase ; decreases ; left C. decreases ; increases ; left D. decreases ; decreases ; left
3	Which of the following events will lead to a decrease in the demand for money.	A. An increase in the level of aggregate output. B. A decrease in the supply of money C. A decrease in the interest rate D. a decrease in the price level
4	An increase in government spending causes the equilibrium level of aggregate output to_______ at any given interest rate and shifts the ____ curve to the	A. rise ; LM ; right B. rise ; LM ;Left C. fall ; IS ; Left D. rise ; IS ;right
5	In the Keynesian cross diagram, an 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
6	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
7	When your grandmother keeps her savings hidden under her mattress she is using money as.	A. a standard of deferred panyment B. A comfortable thing for sleeping C. A medium of exchange D. A store of value
8	The parable of Riding a Switchback suggests that stabilizing policy.	A. Is not sufficiently stimulating or contra citing the economy at any time B. Is desirable C. Is effective D. Is stimulating or contracting the economy at the wrong times.
9	According to the Laffer curve as tax rates increase tax revenues.	A. Decrease continuously. B. Initially decrease and then increase C. Rise continuously D. Initially increase and then decrease
10	Why do people keep currency in their pockets when bank deposits pay interest.	A. Because banks might steal your money B. Because currency is more liquid C. Because bank deposits lose value due to inflation D. Because bank deposits lose value due to exchange in interest rates.

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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

Which of the following would qualify as an aggregate demand shocks.

The ____ lag for fiscal policy is generally _____ than it is for monetary policy.

Which of the following events will lead to a decrease in the demand for money.

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 reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the.

As the required reserve ratio is decreased the money multiplier.

Suppose you are a monetarist and believe in the the monetarist rule which the monetary authorities appear to be following if the economy beings to experience a slight increase in the inflation rte you would recommend that the monetary autorities.

A state of government bonds by the central bank should cause

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _________ in net exports and a ________shifts of the IS curve.

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

The parable of Riding a Switchback suggests that stabilizing policy.

In the ISLM framework an expansionary monetary policy causes aggregate output to _____________ and the interest rate to

As the interest sensitivity of investment spending increase.

In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to.

The IMF is an agency charged with providing.

If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right.

Which of the following persons would be considered unemployed.

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 contractionary monetary policy

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Topic Test

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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The lag for fiscal policy is generally _ than it is for monetary policy.

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 reduction in government spending causes the equilibrium level of aggregate output to ___ at any given interest rate and shifts the curve to the.

A decline in the value of the rupee makes Pakistan goods cheaper relative to foreign goods, resulting in a _ in net exports and a shifts of the IS curve.

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

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.