Before the 1970, Pakistan linked its currency, rupee to:

• A) USA Dollar
• B) Japanese yen
• C) Kuwait Dinar
• D) Pound Sterling

If A firm spends Rs.1000 for making a product and sells its product for Rs.1500, then the valve added is equal to:

• A) Rs.500
• B) Rs.2500
• C) Rs.2000
• D) Rs.1000

Between two countries, the worth of one currency in terms of the other is known as:

• A) Interest rate
• B) Inflation rate
• C) Exchange rate
• D) Floating interbank rate

In the year 1970, the world's economy faced the phenomenon of

• A) Illumination
• B) Stulation
• C) Isolationism
• D) Stagflation

The average propensity to save is the ratio of:

• A) Total saving to a change in disposable income.
• B) A change in saving to total disposable income at a specific income level.
• C) Total saving to total disposable income at a specific income level.
• D) A change in saving to a change in disposable income.

In a classical model, a rightward shift in aggregate supply keeping aggregate demand constant will:

• A) Increase the level of output only.
• B) Increase both the price level and the level of output.
• C) Decrease the price level and increase the level of output.
• D) Increase the price level only.

What is determined on the base of nation's import and export of goods, services, financial transfers and financial capital?

• A) Deflation
• B) Balance of Payments
• C) Lack of Goods
• D) Inflation

Real gross domestic product measures gross domestic product adjusted for:

• A) Taxes
• B) Unemployment
• C) Inflation
• D) Depreciation

Which of the following is NOT a reason why the aggregate demand curve slopes downward?

• A) The interest-rate effect
• B) The classical dichotomy/monetary neutrality
• C) The exchange-rate effect
• D) The wealth effect

There are commonly _________methods of measuring GDP.

• A) Three
• B) Five
• C) Four
• D) Two

In Keynesian economics, equilibrium can occur:

• A) Only at levels greater than full employment.
• B) Only at full employment.
• C) Only at levels less than full employment.
• D) At any level of aggregate output equal to aggregate expenditures.

If the values of real Gross Domestic Product (GDP) and GDP deflator in 2019 are Rs. 650,000 and 1.5 respectively, the nominal GDP in this year is:

• A) Rs. 975,000
• B) Rs. 875,000
• C) Rs. 675,000
• D) Rs. 775,000

If there would be an increase in interest rate then:

• A) Saving will first decrease,then start increasing.
• B) Saving will increase.
• C) Saving will decrease.
• D) Saving will remain unchanged.

Naima has just finished school and is waiting to report to his new job at the beginning of the month. Naima is considered to be:

• A) Frictionally unemployed.
• B) Employed.
• C) Cyclically unemployed.
• D) Structurally unemployed.

How higher savings leads to a lower national income is called

• A) Accelerator
• B) Paradox of thrift
• C) Multiplier effect
• D) Inelastic demand

Suppose government of Pakistan wishes to achieve a fall in unemployment, which of the following policies should it adopt?

• A) Reduce government spending on capital projects.
• B) Raise Value Added Tax (VAT).
• C) Start public job training programs.
• D) Reduce the real value of income tax free allowances.

If A firm spends Rs.1500 for making a product and sells its product for Rs.1800, then the valve added is equal to:

• A) Rs.300
• B) Rs.1000
• C) Rs.500
• D) Rs.800

According to Keynes,unemployment arises due to deficiency of

• A) Aggregate supply
• B) None of above
• C) Both
• D) Aggregate demand

The slope of the consumption function (or line) is the:

• A) Average propensity to save.
• B) Average propensity to consume.
• C) Marginal propensity to consume.
• D) Marginal propensity to save.

If Nominal GDP is divided by the GDP deflator, it is called:

• A) Gross National product (GNP).
• B) Net domestic product (NDP)
• C) Real Gross Domestic Product (GDP).
• D) Net national Product (NNP).