FRQs 2-3 – Short

Overview

• This guide covers both short free-response questions (FRQ 2 and FRQ 3)
• Each short FRQ is worth 5 points
• You have approximately 15 minutes per question (30 minutes total)
• Together they make up 16.675% of your total exam score (half of the 33.35% FRQ section)
• Typically 3-5 parts each, labeled (a) through (c), (d), or (e)
• Calculator permitted and often essential for these questions

Short FRQs are more focused than the long FRQ. While the long question tests synthesis across multiple concepts, each short FRQ typically centers on one primary topic with related calculations or analysis. Common focuses include: GDP calculations and economic indicators, fiscal policy effects with multiplier analysis, money creation and banking operations, or international trade with comparative advantage.

The 5 points per question usually distribute as: 2-3 points for calculations or numerical analysis, 1-2 points for explanations or interpretations, and 1 point for specific conclusions or policy recommendations. Like all FRQs, scoring is binary - perfect accuracy required for each point.

Strategy Deep Dive

Short FRQs test depth within a narrower scope. Where the long FRQ asks you to connect multiple markets, short FRQs dig deep into single concepts. This focused approach requires different strategies.

Recognizing Question Types

Short FRQs fall into recognizable categories. Identifying the type immediately tells you which formulas and concepts to activate:

Measurement and Calculation Questions focus on GDP, inflation, unemployment, or other indicators. You'll calculate real versus nominal values, growth rates, or index numbers. These questions test whether you can apply economic measurement concepts precisely. They often provide tables of data and ask for specific calculations followed by interpretations.

Multiplier Questions give you information about MPC, MPS, or reserve requirements and ask about maximum changes in GDP or money supply. These test mechanical application of multiplier formulas but also conceptual understanding of when maximum versus actual changes occur. Watch for phrases like "maximum possible" versus "actual" - they require different approaches.

Policy Analysis Questions present a specific policy change and ask for focused analysis of its effects. Unlike the long FRQ, you won't trace through multiple markets. Instead, you'll analyze one transmission mechanism thoroughly. These questions reward precision over breadth.

International/Comparative Advantage Questions often include production possibilities tables and test absolute versus comparative advantage calculations. These feel different from other macro questions but follow rigid patterns once you recognize them.

Calculation Precision

Short FRQs are calculation-heavy, and the rubric is unforgiving. Consider how to calculate the unemployment rate. The formula is (Unemployed/Labor Force) × 100. Simple, right? But students lose points by:

• Dividing by total population instead of labor force
• Forgetting to multiply by 100 for percentage
• Rounding incorrectly
• Not showing the formula before substituting

Think about earns full credit: "Unemployment Rate = (Unemployed/Labor Force) × 100 Unemployment Rate = (25,000/200,000) × 100 Unemployment Rate = 0.125 × 100 = 12.5%"

Every step shown, formula first, clean calculation. This format works for all calculations: state formula → substitute values → show arithmetic → box final answer.

Data Table Navigation

Many short FRQs provide data tables. Success requires systematic extraction of relevant information. When you see a table:

First, identify what each column represents. Labels matter - "Nominal GDP" versus "Real GDP," "GDP Deflator" versus "CPI." These distinctions drive which formulas apply.

Second, note the time periods. Year-over-year changes require different calculations than period-to-period changes. Base years for indices must be identified to properly calculate real values.

Third, recognize what's given versus what's missing. If they give nominal GDP and GDP deflator, they're setting you up to calculate real GDP. If they give quantities and prices across years, expect to calculate inflation or real changes.

Connecting Calculations to Concepts

Short FRQs don't just test calculation ability - they test whether you understand what the numbers mean. After calculating that inflation is 25%, the next part asks about effects on specific groups or policy implications.

Strong answers connect numbers to economics: "The 25% inflation rate severely reduces the purchasing power of fixed-income recipients like retirees living on pensions. Their nominal income remains constant while prices rise 25%, reducing their real consumption ability by approximately 20% [1/1.25 = 0.8]."

This shows you understand inflation's distributional effects, not just its calculation. The extra calculation demonstrating real purchasing power loss shows economic thinking beyond the required answer.

Rubric Breakdown

Five points seems limiting, but understanding point allocation helps maximize your score:

Calculation Points (2-3 points typically)

Each calculation point requires:

• Correct formula stated
• Accurate substitution of values
• Arithmetically correct result
• Appropriate units or formatting (percentages, dollar signs, etc.)

Common calculation types and their point allocations:

• Economic indicators (unemployment, inflation, GDP): 1 point each
• Multiplier effects: 1 point for multiplier, 1 point for total change
• Real versus nominal conversions: 1 point per conversion
• Comparative advantage: 1 point for opportunity costs, 1 point for comparison

The rubric often specifies acceptable rounding. "Round to nearest tenth" means 12.5%, not 12.47% or 13%. Follow instructions precisely.

Explanation Points (1-2 points typically)

These points require economic reasoning about your calculations:

• What do the numbers mean economically?
• How do they affect economic actors?
• What policy implications follow?

Explanation points often use command words like "explain," "identify the effect," or "determine the impact." Each requires slightly different responses:

• "Explain" needs causal reasoning
• "Identify" needs specific statement of direction/effect
• "Determine" often involves comparing options

Synthesis Points (1 point typically)

The final point often requires combining previous parts:

• "Based on your calculations above..."
• "Given the changes in parts (a) and (b)..."
• "Which policy would be more effective?"

These points test whether you can integrate information, not just calculate in isolation. They're often the distinguishing points between good and excellent performances.

Common Short FRQ Patterns

Recognizing patterns accelerates your approach:

The GDP Measurement Pattern

Setup: Table with economic data across years Part (a): Calculate real GDP or GDP deflator Part (b): Calculate inflation or growth rate Part (c): Analyze impact on living standards or economic welfare Part (d): Policy recommendation based on findings

Master the key formulas:

• Real GDP = (Nominal GDP / GDP Deflator) × 100
• GDP Deflator = (Nominal GDP / Real GDP) × 100
• Growth Rate = [(New - Old) / Old] × 100
• Real GDP per capita = Real GDP / Population

These questions test whether you understand the difference between nominal and real values, levels versus growth rates, and aggregate versus per capita measures.

The Multiplier Effect Pattern

Setup: Information about MPC, government spending, or reserve requirements Part (a): Calculate relevant multiplier Part (b): Calculate maximum change in GDP or money supply Part (c): Explain why actual change might differ Part (d): Identify limitations or leakages

Key formulas and concepts:

• Spending multiplier = 1/(1-MPC) = 1/MPS
• Tax multiplier = -MPC/(1-MPC) = -MPC/MPS
• Balanced budget multiplier = 1 (always)
• Money multiplier = 1/Required Reserve Ratio

Remember: "Maximum" assumes no leakages. Actual changes are smaller due to savings, imports, cash holdings, or excess reserves.

The Banking System Pattern

Setup: Initial deposit and reserve requirement Part (a): Calculate required and excess reserves Part (b): Calculate maximum money creation Part (c): Show T-account changes Part (d): Explain real-world limitations

Banking questions follow mechanical rules:

• Required Reserves = Deposits × RR
• Excess Reserves = Total Reserves - Required Reserves
• Maximum new money = Excess Reserves × Money Multiplier

T-accounts must balance. Assets (reserves + loans) equal liabilities (deposits). When showing changes, maintain this balance or lose points.

The International Trade Pattern

Setup: Production possibilities table for two countries Part (a): Calculate opportunity costs Part (b): Identify comparative advantage Part (c): Determine trading ratios Part (d): Show gains from trade

Comparative advantage depends on opportunity cost, not absolute production:

• OC of X = Give up Y / Gain X
• Lower opportunity cost = comparative advantage
• Trading ratios must fall between opportunity costs

Common error: Confusing absolute and comparative advantage. A country can have absolute advantage in everything but comparative advantage in only some goods.

Time Management Reality

Fifteen minutes per question requires efficiency without rushing. Here's realistic pacing:

Minutes 0-2: Read carefully, identify question type, list needed formulas. This investment prevents false starts and forgotten components.

Minutes 2-8: Complete calculations methodically. Show every step. A rushed calculation missing steps earns zero, while a careful calculation with minor arithmetic errors might earn follow-through credit on later parts.

Minutes 8-12: Write explanations connecting calculations to economic concepts. These aren't essays - 2-3 sentences of precise economic reasoning suffice.

Minutes 12-15: Review for completeness, check calculations, ensure all parts attempted. Many students lose points for missing subparts like (a)(ii) when focused on (b).

If you're spending 5+ minutes on a single calculation, you're either overcomplicating or missing something. Step back, re-read the question, and look for a simpler approach.

Calculation Mastery Tips

Since calculations dominate short FRQs, here are specific strategies:

Formula First, Always Write the formula before substituting any numbers. This serves three purposes:

1. Shows graders you know the correct formula
2. Prevents substitution errors
3. Provides reference if you need to recalculate

Unit Consistency Match units throughout calculations. If GDP is in millions and population in thousands, convert before dividing. Label units in your final answer - "$2.5 million" not just "2.5."

Percentage Point Precision Distinguish between percentages and percentage points:

• If unemployment rises from 5% to 7%, it increased by 2 percentage points
• It increased by 40% [(7-5)/5 × 100]

These are different calculations testing different concepts.

Check Reasonableness After calculating, sanity-check your answer:

• Unemployment rates should be 0-25% (not 0.05 or 2500)
• Inflation rates rarely exceed 30% in developed economies
• Multipliers typically range from 1 to 10

If your answer seems extreme, recalculate. Common errors like forgetting to multiply by 100 for percentages produce obviously wrong results.

Strategic Calculator Use Your four-function calculator is basic but sufficient. Practice these operations:

• Chain calculations without clearing
• Use memory function for repeated values
• Check arithmetic twice for critical calculations

Don't waste time on mental math when accuracy matters more than speed.

Final Thoughts

Short FRQs reward precision and depth over breadth. While they test narrower content than the long FRQ, they demand greater accuracy in application. Every calculation must be exact, every formula correctly applied, every economic interpretation logically sound.

Success comes from recognizing patterns and applying systematic approaches. When you see a data table, you know calculations are coming. When you see policy changes, you know multiplier effects are likely. This pattern recognition, combined with careful execution, maximizes your score.

Practice calculations until they're automatic. The mechanical aspects - writing formulas, showing work, labeling units - should require no conscious thought during the exam. This frees mental energy for the economic reasoning that distinguishes good from excellent responses.

Remember that short FRQs test whether you can apply economic tools precisely. They're not asking for creativity or lengthy analysis. Follow the format, show your work, make clear connections between calculations and concepts, and move efficiently through each part.

The beauty of short FRQs is their predictability. Master the common patterns, practice precise calculations, and develop clear explanatory sentences. These focused questions reward preparation and systematic thinking. With proper practice, they become the most reliable source of FRQ points.