PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 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. IS ;right IS ;Left LM ; Left LM ; Right
2 A decrease in fully autonomous investment other things equal shifts the ______ curve to the IS ; right IS ; Left LM ; Left LM ; right
3 A decrease in fully autonomous investment other things equal shifts the ______ curve to the IS ; right IS ; Left LM ; Left LM ; right
4 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 ______l and the IS curve Curve to shift to the. rise ; left rise ; right fall ; left fall ; right
5 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. up ; left up ; right down ; left down ; right
6 In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the up ; right up ; left down ;left down ; right
7 In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the up ; right up ; left down ;left down ; right
8 In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift ______ and the equilibrium level of aggregate output to rise and the IS curve to shift to the up ; right up ; left down ;left down ; right
9 In the Keynesian cross diagram an increasing investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift _____ and the equilibrium level of aggregate output to. up ; rise up ; fall down ;rise down ; fall
10 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 ______ up ; rise up ; fall down ;rise down ; fall
11 A decline in planned investment spending unrelated to the interest rate focuses the equilibrium level of aggregate output to ________ and shifts the _ curve to the _______ rise; Lm ; RIGHT RISE ; is; right fall ; IS; Left rise ; LM; left
12 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 _______ rise ; LM ;right rise ; IS ; right Fall ; LM ; left rise ;IS; right
13 A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to __________ at any given interest rate and shifts the _______ curve to the __________ rise ; LM ;right rise ; IS ; right Fall ; LM ; left rise ;IS; Left
14 A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to __________ at any given interest rate and shifts the ___ curve to the __________ rise ; LM ;right rise ; IS ; right Fall ; LM ; left rise ;IS; Left
15 An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the rise ; LM ;right rise ; IS ; right fall ; LM, Left rise ; IS ; Left
16 An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the rise ; LM ;right rise ; IS ; right fall ; LM, Left rise ; IS ; Left
17 An increase in autonomous consumer expenditure causes the equilibrium levelof aggregate output to _______ at any given interest rate and shifts the ____ curve to the rise ; LM ;right rise ; IS ; right fall ; LM, Left rise ; IS ; Left
18 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 _______ rise ; left rise ; right fall ; left fall ; right
19 In the Keynesian cross diagram a decline in autonomous consumer expenditure causes the aggregate demand function to shift down The equilibrium level of aggregate output to ___________ and the IS curve to shift to the rise,; left rise ;right fall ; left fall ; right
20 In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the. up ; left up ; right down ; left down ; right
21 In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift down the equilibrium level of aggregate output to___________ and the IS curve to shift to the. up ; left up ; right down ; left down ; right
22 In the Keynesian corss diagram, and cline in autonomous consumer expenditure causes the aggregate demand function to shift _____ the equilibrium level of aggregate output to fall, and the IS curve to shift to the. up ; left up ; right down ; left down ; right
23 In the Keynesian cross diagram, an increase in autonomous consumer function to shift _______ the equilibrium level of aggregate output to rise and the IS curve to shift to the. up ; left up ; right down ; left down ; right
24 In the Keynesian cross diagram, an expenditure causes the aggregate demand function to shift _________ and the equilibrium level of aggregate output to. up ; rise up ; fall down ; rise down ; fall
25 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. up ; rise up ; fall down ; rise down ; fall
26 Other things equal a decrease in autonomous consumption shifts the _____ curve to the IS ; RIGHT IS ; Left LM ; Left LF ; Right
27 If the Central Bank wanted to decrease the quantity of money held by the public it would. Sell government securities Buy government securities Lower the legal reserve requirement Raise taxes
28 A decrease in the legal reserve ratio from 25% to 20% will Result in light money Be contractionary Increases excess reserves and the potential money multiplier Decrease excess reserves and the potential money multiplier
29 The money multiplier is 4, and the money creating potential of the banking system is Rs. 40,000,000. The legal reserve ratio and the excess reserves are. 40 percent and Rs. 4,000,000 40 percent and Rs. 10,000,000 25 percent and Rs. 2.500,000 25 percent and Rs.10,000,000
30 If the central Bank wished to Tighten money is would. Lower the discount rate Sell government securities Lower the legal reserve ratio Lower the tax rate
Download This Set

Is this page helpful?