Question # 1

The philippic curve is the relation between inflation and unemployment that hold for a given natural rate of unemployment. and a

Choose an answer

Given rate of inflation

Given expected rate on inflation

Given level of unemployment

Given expected level of unemployment

The Root Mean square Error for the actual sales and sales forecast for 1985 and 1986 is.

Choose an answer

20.2

19.9

14.7

17.2

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

Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.

Choose an answer

Positive serial correlation

the presence of multicollinearity

No serial correlation

Negative serial correlation

If the Nominal GNP of an economy rose from Rs. 5000 to 5500 between 1985 and 1986 while the price index rose from 100 to 110 during the same period real GNP

Choose an answer

Fell by 10% from 1985 to 1986

Rose by 10% from 1985 to 1986

Remained constant from 1985 to 1986

Fell by 1% from 1985 to 1986

Economic planning by enteral government agencies is primarily associated with

Choose an answer

command economies

Market economies

Laissez faire economies

Market faire economies

What is the level of savings for disposable income = Rs.5,000 if dissaving's of 50 occur at a disposable income of Rs.0 and a marginal propensity to save equal to 0.257

Choose an answer

Rs. 1.25

Rs.1.125

Rs.1,200

Rs.1,100

Classical economics believe that in the short run.

Choose an answer

Money neutrality exists and prices adjust rapidly

Money neutrality does not exist and prices adjust rapidly

Money neutrality exists and prices do not adjust rapidly.

The value of a household's assets minus the value of its liabilities is called.

Choose an answer

Income

Debt

Stock

Wealth

The long run Phillips curve is

Choose an answer

Vertical

Horizontal

Upward sloping

Downward sloping

An increase in the number of workers hired by a firm could result from

Choose an answer

a decrease in the marginal product of labor

a decrease in the marginal revenue product of labor

An increase in the real wage

A decrease in the real wage

Which of the following factors will cause the demand curve for labor to shift to the right.

Choose an answer

The demand for the product produced by labor declines.

The prices of substitute imputes falls

The productivity of labor increases

None of the above

In the Keynesian model in the long run a decrease in the money supply will cause ___ in the interest rate and _____ in the price level.

Choose an answer

An increase ; an increase

A decrease ; a decrees

No change ; an increase

No change ; a decrease

Under law of demand.

Choose an answer

Price of commodity is an independent variable

Quantity demanded is a dependent variable

Reciprocal relationship is found between price and quantity demandded

All of the above

If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.

Choose an answer

Increase by Rs.16

Decrease by Rs.16

Increase by Rs.40

Decrease by Rs.30

In a model in which there is no government new investment capital replacement or international trade the market value of final output equals.

Choose an answer

Aggregate consumption

The sum of the receipts of economic resources

The sum of wages rent interest and profit

All of the above

The term household production refers to

Choose an answer

Output produced by forcing children to work

Output produced by workers who are telecommuting

Services provided directly to households such as lawn mowing by landscape companies.

Output produced at home

Which of the following is the most liquid.

Choose an answer

A savings account

A 6 months CD

A home

Water

The long run aggregate supply curve

Choose an answer

Is vertical

slopes upward

Is horizontal

Slopes downward

The monetary base in composed of.

Choose an answer

Gold and silver

Currency only

Currency and reserves

Currency and checkable deposits

When an increase in government spending is matched by an equal decrease in government transfers, the income level will.

Choose an answer

Stay the same

Increase

Decrease

All of the above

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