Question # 1

As the economy nears full capacity the short run aggregate supply curve

Choose an answer

Stagflation

Structural inflation

Demand side inflation

Supply side inflation

A technological improvement will

Choose an answer

Increases the desired capital stock

Decrease the desired capital stock

Have no effect on the desired capital stock

Have the same effect on the desired capital stock as an increase in corporate taxes.

Given the data above, the empirical equation for the IS curve is.

Choose an answer

Y = 275 + 10 i

Y = 225 + 50 i

Y = 250 - 10 i

Y = 275 - 501

What tow factors should you equate in deciding how many workers to employ.

Choose an answer

The marginal product of labor and the marginal product of capital

The marginal product of labor and the real wage rate

The marginal product of labor and the real interest rate

The marginal product of capital and the real wage rate

For a borrower an increase in the real interest rate will lead to.

Choose an answer

Higher current consumption and less borrowing

Higher current consumption and less saving

Lower current consumption and less borrowing

Lower current consumption and less saving

When total utility becomes maximum then marginal utility will be.

Choose an answer

Minimum

Average

Zero

Negative

Which of the following is the most liquid.

Choose an answer

A savings account

A 6 months CD

A home

Water

An increase in autonomous net exports

Choose an answer

Shifts IS rightward by k, ox

shifts IS left eard by k, AX

Increase the slope of IS

Decreases the slope of IS

When a person received an increase in wealth, what is likely to happen to consumption and saving.

Choose an answer

Consumption increase and saving increases.

Consumption increases and saving decreases

Consumption decreases and saving increases

Consumption decreases and saving decreases

In the short run an increase in export sales would cause output to ______ and the price level to.

Choose an answer

Rise, rise

Rise,; stay; constant

Fall; rise

fall; stay; constant

The origin of the idea of a trae off between inflation and unemployment was a 1958 article by

Choose an answer

A.W Philips

Edmund phelps

Milton Friedman

Robert Gordon

When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.

Choose an answer

The interest rate will rise

The interest rate will decline

The price level will not change

Investment will decline

In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.

Choose an answer

LM is steeply sloped and IS is relatively that

LM is vertical and IS is stopped

LM is steeply sotped and IS is vertical

LM is relatively flat as is IS

The dynamic aggregate demand schedule shifts rightward when there is an increase in.

Choose an answer

The expected rate of inflation ceteris paribus

The growth rate of the nominal money supply ceteris paribus

The income tax rate ceteris paribus

the current inflation rate celeries paribus

The government budget surplus equals

Choose an answer

Government purchases plus transfers

Net government receipts minus government purchases

Government purchases minus net receipts

Government purchases minus transfers.

When the price level increases 25% starting from a price level equal to 100, a Rs. 1000 bond will have a real value of .

Choose an answer

Rs. 800

Rs.1250

Rs.750

Rs.666

A variable whose value is determined witching an economic theory or model is.

Choose an answer

Exogenous

Independent

Deterministic

Endogenous

The fact that the long run Phillips curve is vertical implies that

Choose an answer

Monetary policy can't effect unemployment

Money is neutral in the long run

There is a natural rate of inflation

Money can't affect inflation in the long run

Suppose nominal GNP is Rs.500 in year 1, the base year If the GNP deflator doubles by year 6 while real output has increased 40% nominal output in year 6 equals.

Choose an answer

Rs.2000

Rs.1400

Rs.1000

Rs.750

What did economist Adam Smith identity as the "invisible hand" that directs the decision making of firms and households in a market economy.

Choose an answer

Government

Product demand

Self interest

International trade

Capital goods are

Choose an answer

A type of intermediate good

Final goods, because they are not used up during a given year

Produced in the same year as the related final good whereas intermediate goods are produced in different years.

Produced in one year whereas final goods are produced over a period of more than one year

More Classes

Other Links

PPSC Economics Chapter 3 Macro Economics MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer