PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 A decline in the money supply shifts the LM curve to the left causing the interest rate to ________ and output to___ rise ; rise rise ; fall fall ; rise fall ; fall
2 A decline in the money__________ shifts the LM curve to the ____ causing the interest rate to rise and output to fall. Demand ; right demand ; left supply ; right supply ; left
3 A decrease in the quantity of money supplied shifts the money supply curve to the _____ and the LM curve to the right ; left right ; right left ; left left ; right
4 An increases in the quantity of money supplied shifts the money supply curve to the _____and the LM curve to the right ; left right ; right left ; left left ; right
5 A decrease in the quantity of money supplied shifts the money supply curve to the________ and the equilibrium interest rate right ; fall right ; rises left ; falls left ; rises
6 An increase in the quantity of money supplied shifts the money supply curve to the_______ and the equilibrium interest rate right ; falls right ; rises left ; falls left ; rises
7 If the Federal reserve conducts open market __ the money supply __ shifting LM curve to the left. Purchases ; decreases sales ; decreases purchases ; increases sales ; increases
8 If the Federal reserve conducts open market ________ the money supply _______ shifting the LM curve to the right. Purchases ; decreases sales ; increases purchases ; increases sales ; decreases
9 If Federal reserve conducts open market sales, the money supply ___ shifting the LM curve to the_____ decreases ; right decreases ; left Increases ; right Increase ; left
10 An increase in the money supply other thighs equal shifts the ______ curve to the IS ; right Is ; left LM ; Left LM ; right
11 Which of the followig does not shift the IS curve . An increases in autonomous consumption An increase in government spending. A decline in government spending A fall in theinterest rate
12 Factor that cause the IS curve to shift include. Change in autocoups consumer spending Change in taxes Change in government spending All of the above
13 Factors that cause the IS curve to shift include. Changes in autonomous consumer spending Changes in government spending Changes in investment spending related to business confidence All of the above
14 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 fall ; leftward rise ; leftward fall ; rightward rise ; rightward
15 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. fall ; leftward rise ; leftward fall ; rightward rise ; rightward
16 A shift in tastes toward foreign goods ______ net exports and causes the IS curve to shift to the decreases ; right decrease ; left increase ; right increases ; left
17 A shift in tastes toward Pakistan goods ________ net exports and causes the IS curve to shift to the. decreases ; right decreases ; fall increases ; rise increases ; fall
18 A shift in tastes toward Pakistan goods ______ net exports and causes the quantity of aggregate output demanded to______ decreases ; rise decreases ; fall Increases ; rise Increase ; fall
19 A shift in tastes loward foreign goods______ net exports and causes the quantity of aggregate output demanded to. decreases ; rise decreases ; fall increases ; rise increases ; fall
20 When the value of the Rupee rises Pakistan goods become _____ expensive relative to foreign goods which ___ exports. more ; iincreases less ; increases more ; decreases more ; increases
21 An autonomous rise in the value of the Rupee makes Pakistan goods _____ expensive relative to foresight goods which ______ net exports Less ; decreases Less ; increases More ; decreases more ; increases
22 An autonomous decline in the value of the Pakistan Rupee makes Pakistan goods _______ relative to foreign goods and results in a ______ in net exports. Cheaper ; decline Cheaper ; rise dearer ; decline dearer ; rise
23 If young busness professionals in Pakistan suddenly decide that driving japan made cars is an important status symbol net exports will tend to _____________causing aggregate demand to. fall ; fall fall ; rise rise ; fall rise ; rise
24 A tax cut __ disposable income _____ consumption expenditure and shifts the IS curve to the. Increases ; increases ; right Increases ; decreases ; left decreases ; increases ; left decreases ; decreases ; right
25 A tax increase __________ disposable income ____ consumption expenditure and shifts the IS curve to the. Increase; increases ; right Increase ; decreases ; left decreases ; increases ; left decreases ; decreases ; left
26 A decline in taxes __ consumer expenditure and shifts the _ curve shifts to the. Raises ; LM; Right Lowers; IS ; left raises ; IS; right Lower ; LM; left
27 The IS curve shifts to the left when Taxes increase Government spending increase The money supply increases All of the above occur
28 Increases in government spending increase interest rates and aggregate output in the ISLM framework this is a ____ shift of the _____ curve. Left ward ; LM Right ; LM Left ward ; IS Left ward ; AD
29 A reduction in government spending causes the equilibrium level of aggregate output to ___________ at any given interest rate and shifts the ________ curve to the. fall ;LM; right fall ;IS; Left fall ;LM; Left rise ;LM; Rifht
30 An increase in government spending causes the equilibrium level of aggregate output to_______ at any given interest rate and shifts the ____ curve to the rise ; LM ; right rise ; LM ;Left fall ; IS ; Left rise ; IS ;right
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