⏱️ November 15, 2020
The AP Macroeconomics Exam consists of two sections: (1) Multiple-Choice Questions and (2) Free-Response Questions. The multiple-choice section consists of 60 questions, each with 5 answer choices. You have 70 minutes for the multiple-choice section which gives you a little over a minute per question. The Free-Response section consists of three questions, one long question, and two short questions. 📚
A couple of important rules for the test:
Below is the breakdown of each section of the exam including the types of questions, how many questions, weighting and timing.
The AP Macro exam assesses content from the following four ideas for the course. Every question whether it be multiple-choice or free-response will involve content from these four areas.
The College Board has given us a basic breakdown of how much each concept will be covered on the exam:
In this section, you will have a total of 60 questions in which you will be tested on your ability to (1) define economic principles and models, (2) explain given economic outcomes, (3) determine outcomes of specific economic situations, and (4) answer questions based on a graph or visual representation that is provided. About 16-20% of the multiple-choice questions will ask you to analyze numbers or perform calculations.
All of these questions can be found in the AP Macroeconomics Course and Exam Description
1. E, In order for it to be attainable it has to be located on the productions possibilities curve. The combination of 20 parks and 4 gymnasiums is located outside of the PPC and thus unattainable.
2. B, In both an increase in demand and an increase in supply equilibrium quantity increases, but with an increase in demand equilibrium price increases and with an increase in supply equilibrium price decreases. Since the equilibrium prices go in opposite directions, we say that price is indeterminate.
3. B, inventories is considered part of investment spending within the formula used to calculate GDP which is C + I + G + Xn.
14. B, you would simply find where 6% inflation is on the graph and where it connects with the SRPC curve in the x-axis.
9. C, The loanable funds market remember brings together borrowers and lenders. If there is optimism about the future economy than borrowers are going to be more willing to take loans to invest in their businesses or buy personal items which would lead to an increase in the demand for loanable funds.
This section of the exam includes three questions, one that is rather long in length and two that are short. You want to spend at least half the time on the long FRQ. The long FRQ is usually a mix of a variety of different concepts.
It is important in the FRQ section, to label with the labels that they give you. Please do not use your own labeling. If they specifically ask in the question to use a particular label then it will be written into the rubric and credit cannot be given if you use different labels.
The more detail you can provide on your graphs the better off you will be towards earning points.
Make sure your graphs are legible, hard to read graphs will not be scored.
Some tips for this type of question and similar ones:
💸 Unit 1: Basic Economic Concepts
1.2Opportunity Cost and the Production Possibilities Curve (PPC)
1.3Comparative Advantage and Trade
📈 Unit 2: Economic Indicators and the Business Cycle
2.1Circular Flow and GDP
2.6Real vs Nominal GDP
💲 Unit 3: National Income and Price Determination
3.5Equilibrium in Aggregate Demand-Aggregate Supply (AD-AS) Model
💰 Unit 4: Financial Sector
4.3Definition, Measurement, and Functions of Money
4.4Banking and the Expansion of the Money Supply
⚖️ Unit 5: Long-Run Consequences of Stabilization Policies
5.1Fiscal and Monetary Policy Actions in the Short-Run
5.3Money Growth and Inflation
5.4Deficits and the National Debt
🏗 Unit 6: Open Economy-International Trade and Finance
6.1Balance of Payments Accounts
6.4Effect of Changes in Policies & Economic Conditions on the Foreign Exchange Market
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