PPSC Economics Full Book MCQ Test With Answers

PPSC Economics Full Book MCQ Test

Sr. # Questions Answers Choice
1 In the long run an increase in consumer spending would cause output to ________ and the price level to.___________ rise;rise rise; stay; constant stay constant ; stay constant Stay constant ; rise
2 In the short run an increase in export sales would cause output to ______ and the price level to. Rise, rise Rise,; stay; constant Fall; rise fall; stay; constant
3 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long run aggregate supply curve. slopes upward Sloped downward Is vertical Is horizontal
4 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis which of the following curves is vertical. SRAS AD LRAS None of the above
5 When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward. SRAS AD LRAS None of the above
6 The Ad, SRAS ,and LRAS curve each show a relationship between which two economic variables. The aggregate price level and output The aggregate price level and the interest rate Output and unemployment Output and the interest rate.
7 The three main components of the aggregate demand aggregate supply model include. AD, SRAS, LM SRAS, LRAS, IS AD, IS, LM AD, SRAS, LRAS
8 Wars new inventions, harvest failures, and change sin government policy are examples of. The business cycle Economics models Shocks Opportunity costs
9 Which of the following macro economic variables doesn't vary much ove the seasons. The nominal money stock The unemployment rate The real wage Average labor productivity
10 Which of the following macro economic variables is the most seasonally pro cyclical. Expenditure on services The unemployment rate Expenditure on durable goods The real wage
11 Industries that are extremely sensitive to the business cycle are the. Durable goods and service sectors Nondurable goods and service sectors. Capital goods and nondurable goods sectors. Capital goods and durable goods sectors.
12 Which of the following macroeconomic variables is procyclical and lags the business cycle. Business fixed investment Empolyment Stock prices Nominal interest rates
13 Which of the following macro economics variables is a cyclical. Real interest rates Unemployment Money supply Consumption
14 Which of the following macro economic variables is procyclical and coincident with the business cycle. Residential investment Nominal interest rates Industrial production Unempolyment
15 An economic variable that moves in the opposite direction as aggregate economic activity up in is called. Pro cyclical Countercyclical A cyclical A leading variable
16 An economics variable that moves in the same direction as aggregate economic activity is called. Countercyclical Procyclical A cyclical A leading variable
17 Peaks and trough of the business cycle are known collectively as. Volatility Turning points Equilibrium point Real business cycle events
18 When aggregate economic activity is declining , the economy is said to be in. A contraction An expansion A trough A turning point
19 When aggregate economic activity increasing the economy is said to be in. An expansion A contraction A peak A turning point
20 The low point in the business cycle is referred to as the Expansion Boom Trough Peak
21 The through of a business cycle occurs when ______ hits its lowest point. Inflation The money supply Aggregate economic activity The unemployment rate
22 Which of the following changes shifts the SRAS curve down. An increase in the labor force An increase in the money supply A decrease in government purchases A decrease in firms costs
23 Which of the following changes shifts the long run aggregate supply curve to the right. A demographic change that increases the labor supply A decrease in the demand for labor An increase in consumer confidence A decrease in taxes
24 Which of the following changes shifts the SRAS curve up. Ani increases in the labor force A decrease in government purchases An increase in firms costs An increase in the money supply
25 The long run aggregate supply curve. Is vertical Slopes upward Is horizontal Slopes downward
26 The long run aggregate supply curve Is vertical slopes upward Is horizontal Slopes downward
27 The short run aggregate supply curve the absence of misperceptions. Is vertical Slopes upward Is horizontal Slopes downward
28 Which of the following changes shifts the AD curve up and to the right. A rise in the nominal money supply An increase in income taxes An increase in the risk on nonmonetary assets A decreasing the future marginal productivity of capital.
29 Which of the following changes shifts the AD curve down and to the left. A temporary increase in government purchases. A rise in the nominal money supply A decrease in corporate taxes A decrease in consumer confidence
30 The aggregate demand curve Is vertical Slopes upward Is horizontal Slopes downward
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