points lies on the production posibilities curve according the Keynesian theory are: O 1. not normal and not possible O 2. not normal but possible O 3. normal but not possilble O 4. normal and possible
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- ciples of Macroeconomics || Fall20 1 What does the PPI measure? ed Select one: d out of O a the average change in the prices paid for all goods produced in the economy over a given year O b. the level of production of goods and services generated in the economy in a given year question O c. the difference between the prices consumers pay for goods and services and the prices producers pay for O d. the average of the prices received by producers of goods and services at all stages of the production pro Ti navigation Type here to search1Why low rate inflation is considered necessary for economic grwoth? Oa It does not affect the purchasing power of wages Ob. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. O a False O b. True 3Government fixes the floor and ceiling price which will not allow the producers to increase the price on their wish, this is a type of. O a Physical control called price pegging O b. Monetary policy control measures O. Physical control called price tagging Od. Fiscal policy control measures O e None 4Rising output coupled with falling prices is called stagflation O a. False O b. True 5The Value of marginal propensity to consume lies O a. O to 1 O b. Less than zero Oc -1 to 1 Od. Between O to 1 6The Central Bank way to control inflation is Oa Monetary policy…v Question Completion Status: A Moving to another question will save this response. Quèstion 4 Assume the economy's consumption and saving schedules simultaneously shift downward. This must be the result of: O A. The expectation of a recession O B. An increase in household wealth. O C. An increase in personal taxes. O D. An increase in disposable income. Moving to another question will save this response. SHARP AQUOS
- hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu toStartung trom keng run eaillium, itA suditen decrease en houtetd weath cnes a n AD thw coramy wiperience OA the same lee of pnces nd iower real GOP in the short run O higher pnces and lower real ODP the short. nn Oe. lower prles and lwe mal GOPhe shortrun a krwer ces and the same level of oDP n me shot runAn inflationary gap is automatically closed by wages that shift the O a) rising; SRAS curve rightward O b) falling; SRAS curve rightward c) falling: SRAS curve leftward d) rising: SRAS curve leftward
- 3:35 PM O ll al a 59 % f H.W2.pdf Sx. The mantaly conumpthie Values for rice are Use below:- July Sept. Oct. Nov. June Aug. 28.65 7.85 13.45 21.60 24.30 14.70 Cm Cm Cm Cm Cm Determin the seasonal The consumptive use, The average montaly Consumptive use and average dzily comsumptive use, the beak monthly consumptive use.b Question 16 esc K →1 Which of these economic variables is procyclical? O investment spending O unemployment the credit spread O all of the above Onone of the above A Moving to another question will save this response. Type here to search ? Q 12 VA f3 14 10 LA D I % R LO F t 16 hp CEconomists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O
- If Aggregate Demand is at AD2, production will be high as possible. Can production stay at this level foever? Price Level Price Level GDP POTENTIAL AD₁ GDP POTENTIAL AS GDP MAX AD₁ AS GDP MAX AD2 GDP AD2 GDP Select one: O a. No, because eventually, higher aggregate demand will raise prices, and this will make some people less willing to do additional work Oc. All of these are true Od. Yes, because this is maximum production e. None of these are true O b. No, because eventually higher aggregate demand will cause prices to fall, and this will make producers decide to produce lessQUESTION 6 1 points 501e Which of the following is correct? O D. When MP is rising MC is falling, and when MP is falling MC is rising C. When MP is rising MC is rising, O B. When AP is rising MC is falling, and when AP is falling MC is rising A. There is no relationship and when MP is falling MC is between MP and MC fallingA Moving to another question will save this response. Question 2 Price Level LRAS A Moving to another question will save this response. Ags D O a. this economy is in long run and short run equlibrium. O b. This economy is overheated, in equilibrium at greater than full employment. O c. there is not enough information here to even guess. O d. this economy is in recession, in equilibrium at less than full employment. SRAS #1 Real Output How would you ch AR
