AP® Macroeconomics

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Assessments
Overview

    Basic Economic Concepts

    Basic Economic Concepts refer to the principles of scarcity, opportunity cost, supply, and demand that influence how individuals and societies allocate resources and make economic decisions.

    Long Answer

    The section on Basic Economic Concepts examines scarcity, opportunity cost, comparative advantage, and trade-offs as foundational principles for economic decision-making.
    1 question

    Basic Concepts

    Short Answer

    Short answer questions require demonstrating understanding of economic concepts or models concisely, often involving explanations or calculations based on given economic principles or data.
    1 question

    Production Possibilities Curve and Terms of Trade

    Economic Indicators and the Business Cycle

    Economic indicators like GDP, inflation, and unemployment gauge an economy's performance, while business cycles describe fluctuations in output and employment due to changes in aggregate supply and demand.

    Long Answer

    Analyze economic indicators such as GDP, inflation, and unemployment to understand their role in defining the phases and turning points of the business cycle.
    1 question

    Economic Indicators

    Short Answer

    Short answers in macroeconomics require defining or explaining key economic indicators like GDP, unemployment, and inflation, analyzing their implications, and describing their relationships within the business cycle.
    2 questions

    Labor Force and Employment

    Unemployment and Inflation

    National Income and Price Determination

    National Income and Price Determination involves analyzing the interaction of aggregate supply and demand to comprehend how output, employment, and price levels are established in an economy.

    Long Answer

    Aggregate demand and short-run aggregate supply determine national income and price levels, illustrating how economic changes impact output, employment, and the price level in the short and long run.
    1 question

    Analyze Econland

    Short Answer

    Short answer questions in AP Macroeconomics assess the ability to apply economic concepts and principles to explain national income and price determination using concise explanations.
    1 question

    Aggregate Supply and Demand

    Financial Sector

    The financial sector in macroeconomics analyzes the flow and management of money, credit, and assets, highlighting the roles of banks and financial markets in affecting interest rates, investment, and economic growth.

    Long Answer

    The financial sector facilitates the economy's money supply expansion, influencing nominal interest rates, and utilizes fiscal and monetary policy to address issues of growth, unemployment, inflation, and exchange rates.
    1 question

    Financial Sectors

    Short Answer

    Short answer questions require concise explanations using key economic concepts and principles, often with the aid of graphs or calculations, to demonstrate understanding of the financial sector's core components.
    1 question

    Banking and the Money Supply

    Long-Run Consequences of Stabilization Policies

    Stabilization policies can influence aggregate demand and supply, affecting long-term economic growth, employment levels, interest rates, and the distribution of resources within an economy.

    Long Answer

    The long-run consequences of stabilization policies include potential impacts on economic growth, inflation, and employment, which are influenced by fiscal and monetary policy actions.
    3 questions

    Recessionary Gap

    Unemployment

    Recession in the US

    Short Answer

    The short answer assessment evaluates understanding of how long-run stabilization policies impact aggregate demand, aggregate supply, and potential output, along with associated effects on inflation and unemployment.
    2 questions

    Monetary Policy Changes

    US Economy

    Open Economy—International Trade and Finance

    Open Economy—International Trade and Finance examines how countries interact through trade and capital flows, impacting exchange rates, balance of payments, and economic policies in an interconnected global economy.

    Long Answer

    Analyze the effects of international trade and finance on an open economy, including exchange rates, balance of payments, and the impact of fiscal and monetary policies on trade balance and capital flows.
    1 question

    International Trade and Finance

    Short Answer

    Explain the economic relationships between countries, focusing on concepts such as exchange rates, net exports, trade balances, financial capital flows, and how these influence aggregate demand and GDP.
    1 question

    International Trade: US and Great Britain