Kerala PSC Previous Years Question Paper & Answer

Title : Higher Secondary School Teacher (Junior) in Economics -Kerala Higher Secondary Education
Question Code : A

Page:5


Below are the scanned copy of Kerala Public Service Commission (KPSC) Question Paper with answer keys of Exam Name 'Higher Secondary School Teacher (Junior) in Economics -Kerala Higher Secondary Education' And exam conducted in the year 2022. And Question paper code was '56/2022/OL'. Medium of question paper was in Malayalam or English . Booklet Alphacode was 'A'. Answer keys are given at the bottom, but we suggest you to try answering the questions yourself and compare the key along wih to check your performance. Because we would like you to do and practice by yourself.

page: 5 out of 14
Excerpt of Question Code: 56/2022/OL

नि the real money supply and shift the LM schedule leftward
D:-Reduces real money supply and shift the LM schedule leftward

Correct Answer:- Option-D
Question30:-The Philips curve shows
ಸಿಹಿ inverse relationship between real and nominal wage rate
B:-An inverse relationship between rate of inflation and rate of unemployment
‏مقت‎ inverse relationship between real and nominal money supply
D:-A positive relationship between the rate of inflation and the nominal wage
Correct Answer: Option ®
Question31:-The fundamental cause of crowding out is an
‘AcIncrease in the interest rate caused by a fiscal policy stimulus
B:-An increase in the interest rate caused by a monetary policy stimulus
C-Decrease in interest rate caused by a fiscal policy stimulus
D-Decrease in interest rate caused by monetary policy stimulus
Correct Answer:- ೦೧000
‘Question32:-LM curve in the general equilibrium
‘Achat identifies the combinations of income and the interest rate at which money market is in equilibrium
B:-Shows the demand for money equals supply of money

‎combinations of income and interest rates where money market is in equilibrium‏ عجرمك

‎D-Both (A) and (8)
Correct Answer:- Option-D
ಟಟ of the following statements is correct in case of new classical macro economics?
‘As Continuous market clearing
B:-Imperfect information
C-Complete information on aggregate price level
D-Both (A) and (8)
Correct Answer:- Option-D
Question34:-Real business cycle model explains

‎AcBusiness cycles in output as the result of slowly changing shocks to supply
conditions and technology

‎B:-Work more at low real wage
C:Enjoy leisure in periods of high real wage
D:-None of the above

‎Correct Answer: Option:

‎Question35:-The cumulative loss of output incurred during a disinflation divided by the permanent
reduction in the inflation rate is called

‎Acgratio
‎B:-Money multiplier
C-Sactifce ratio
D-High powered money
Correct Answer: Option-C
Question36:-Seignorage is the
‘ARevenue that the government receives from inflation
8:1೬ is equal to the inflation rate times real high powered money
C:Revenue that the goverment receives from disinflation
D-Both (A) and (8)
Correct Answer:- Option-D
Question37:-New Keynesian economics explains

‎AcRigidity in prices and wages as consistent with self interest of firms and workers all of which are assumed to have rational expectations
B:-Flexibility in prices

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