PPSC Economics Topic 4 Monetary & Fiscal Policy

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PPSC Economics Chapter 4 Important MCQ's

Sr.#	Question	Answer
1	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
2	Which of the following would qualify as an aggregate supply shock.	A. An unexpected increase in oil prices B. Seasonally expected increase in oil prices C. An unexpected reduction in consumer confidence D. an anticipated tax cut
3	A rise in planned investment spending unrelated to the interest rate causes teh equilibrium level of aggregate output to __________ at shifts the _____ curve to the _______	A. rise ; LM ;right B. rise ; IS ; right C. Fall ; LM ; left D. rise ;IS; right
4	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
5	An increase in spending those results from expansionary _______ policy cause the interest rate to.	A. fiscal ; rise B. fiscal ; fall C. incomes ; rise D. income ; fall
6	Fiscal policy refers to.	A. The actions of the central bank in controlling the money supply B. The government's altitude to taxation C. The spending and taxing policies used by the government to influence the economy D. The governments regulation of financial intermediaries.
7	A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the.	A. Raises ; LM; Right B. Lowers; IS ; left C. raises ; IS; right D. Lower ; LM; left
8	A 15% VAT is a.	A. Proportional income tax B. Fixed excise duty C. Ad valorem indirect tax D. None of the above
9	Factor that cause the IS curve to shift include.	A. Change in autocoups consumer spending B. Change in taxes C. Change in government spending D. All of the above
10	Other things equal a decrease in autonomous consumption shifts the _____ curve to the	A. IS ; RIGHT B. IS ; Left C. LM ; Left D. LF ; 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 increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _______ in net exports and a __ shift of the IS curve

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 _______

In the ISLM framework the decreasing investment spending believed by Keynes to be the cause of the Great Depression would be illustrated by a shift of the ____ curve to the.

The IMF is an agency charged with providing.

When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports.

If firms paying employees monthly began paying them weakly then the demand for money would.

Net taxes are.

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

Time lags which often erode effectiveness of monetary and fiscal policy measures represent.

The IS curve shifts to the left when

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.

If the demand for money increase relative to the supply of money

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

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.

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

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

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

The limit of an economy's total productive capacity at any given time is set by

Employment tends to _______ whwn aggregate output.

Suppose velocity is constant and the real income elasticity of the demand for money is less than one then estimating inflation as money growth rate minus real growth rate.

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 increases in the value of the Rupee makes foreign goods cheaper relative to Pakistan goods, resulting in a _____ in net exports and a shift of the IS curve

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 _

When the value of the Rupee rises Pakistan goods become ___ expensive relative to foreign goods which _ exports.

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.