# PPSC FPSC KKPSC BPSC SPSC AJKPSC Lecturer Economics Test 44

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 Test Instructions:- Test Name Lecturer EconomicsÂ Subject Economics Test 44 Test Type MCQs Total Questions 25 Total Time 20 Minutes Total Marks 100
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You have 20 minutes to pass to the quiz.

Lecturer Economics Online Test No. 44

1 / 25

If twenty cents out of each additional dollar of income is saved then the simple expenditure multiplier is:

2 / 25

If G increases by \$100 billion how much should T the increased if the government wants Y to increase by \$100 billion and the MPC is 0.9?

3 / 25

An increase in current income would cause the:

4 / 25

Aggregate expenditures would rise due to an increase in all of the following except:

5 / 25

The 45-degreee line in the income/expenditure model shows points at which:

6 / 25

In general crowding out causes the effect of an increase in government expenditures on output to:

7 / 25

If I and G increases by \$10 billion, desired aggregate expenditure will increase by:

8 / 25

In a depression economy along a horizontal aggregate supply curve:

9 / 25

An increase in the foreign price level with the nominal exchange rate unchanged causes imports and exports to:

10 / 25

The aggregate expenditure curve:

11 / 25

The tax multiplier is described by all of the following except:

12 / 25

If the marginal prosperity to consume is 0.75 then holding interest rates constant, a \$1 billion increase in taxes will cause the Keynesian-equilibrium level of output to:

13 / 25

In the economic slowdown in the early 1990s business activity was reduced while:

14 / 25

When taxes are introduced into the income/expenditure model the:

15 / 25

Which of the following is an increase in autonomous expenditures?

16 / 25

If real GDP is \$80 billion below full employment, how much should government spending be increased to restore full employment if the MPC is 0.75?

17 / 25

According to the autonomous expenditure multiplier in the income/expenditure model, an increase in government spending increases output by:

18 / 25

The correct definition of desired aggregate expenditure with a government sector is given by:

19 / 25

If investment increases then the equilibrium amount of saving:

20 / 25

If the MPS equals 0.25 then the value of the expenditure multiplier is:

21 / 25

One effect of crowding out caused by higher government spending would be to:

22 / 25

The assumption made about desired government expenditure in the basic Keynesian model is the:

23 / 25

If the money supply is constant, then as the price level falls:

24 / 25

The aggregate demand curve to the Keynesian model is:

25 / 25

If government taxes rise by \$200 and the MPS is 0.25 what is the predicted impact on desired aggregate expenditure?