AP Macroeconomics

What Is on the AP Macroeconomics Exam?

The AP Macroeconomics Exam tests knowledge gained in the Advanced Placement Macroeconomics course, including economic principles, models, and outcomes. There are two sections to the AP Macro Test. The first section consists of 60 multiple-choice questions and lasts 1 hour and 10 minutes. Questions in this section cover economic principles and models and ask test takers to determine economic outcomes. The second section consists of 3 free responses questions and takes 1 hour. In the free-response section, test-takers will explain concepts, perform calculations, and create economic graphs. The exam will test material from the six units of the course.

Basic Economic Concepts

In this unit, the material includes foundational economic concepts and models such as scarcity, market equilibriums, and changes in those equilibriums. Supply and demand, opportunity costs, and comparative advantage are also covered in this unit, and candidates will need to know about the Production Possibilities Curve (PPC). Questions from this unit make up 5-10% of the AP Macroeconomics Exam score.

Economic Indicators and the Business Cycle

This unit covers the measurement of economic indicators such as employment and inflation. It will also examine Gross Domestic Product (GDP) and business cycles, and test-takers must be familiar with concepts like aggregate demand, real wages, and the Consumer Price Index (CPI). This part makes up 12-17% of the exam score.

National Income and Price Determination

In this unit, test-takers will need to be familiar with the interconnectivity of policy, inflation, spending, production, national income, and employment. The unit also assesses the examinee's knowledge of government spending, expenditure multipliers and supply and demand at the aggregate level. Finally, they'll need to be knowledgeable about Long-Run Aggregate Supply (LRAS) and Short-Run Aggregate Supply (SRAS). Questions on these topics comprise 17-27% of the AP Macro Exam score.

Financial Sector

This unit covers monetary policy and how it works in the financial sector and banking system. Specific topics include functions of money, assets, and the expansion of the money supply. The AP Macroeconomics exam will also assess candidates on concepts such as liquidity, various types of interest rates, and equilibrium in the market. It makes up 18-23% of the AP Macro Exam score.

Long-Run Consequences of Stabilization Policies

Details of monetary policy and its long-run impact on the economy are covered in this unit. In addition, the relationship between inflation, money growth, and government debts and deficits will covered. Examinees should also study the Phillips Curve, the loanable funds market model, and markers of labor productivity. It makes up 20-30% of the AP Macro Exam score.

Open-Economy - International Trade and Finance

The Open-Economy - International Trade and Finance unit includes open economies that trade with other nations and global financial markets, so test-takers must brush up on these concepts. Foreign exchange rates, markets, and policy interactions with those markets are covered in this unit, Finally, the AP Macro Exam will ask candidates about real interest rates, shifts in demand, and capital flows across the globe. Topics from this course unit make up 10-13% of the AP Macro Exam.