Preparing for the AP Macroeconomics TestExam ContentThe AP Exams in economics were introduced in 1989. The AP Macroeconomics Exam tests knowledge of topics included in a one-semester introductory college course, including basic economic concepts; measurement of economic performance; national income and price determination; financial sector; inflation, unemployment, and stabilization policies; economic growth and productivity; and open economy. The following table reflects the approximate percentage of the multiple-choice section of the exam devoted to each content area: 8-12% basic economic concepts12-16% measurement of economic performance15-20% financial sector20-30% inflation, unemployment, and stabilization policies10-15% national income and price determination5-10% economic growth and productivity10-15% open economy: international trade and financeThe free-response questions in Section II of the exam generally ask students to analyze a given economic situation and present and evaluate general macroeconomic principles. Students are expected to write well-organized and analytical essays and to include explanatory diagrams that clarify their analysis. Students may be required to interpret graphs that are provided as part of the questions or to draw their own graphs as part of their answers. All graphs should be clearly labeled. Generally, the longer essay (50 percent of the free-response score) requires students to interrelate several content areas, while the two shorter essays (together, 50 percent of the free-response score) typically focus on a specific topic in a given content area.Structure of TestAbout the ExamThe exam is 2 hours and 10 minutes long, and includes a multiple-choice section and a free-response section.Section I: Multiple-ChoiceYoull have 70 minutes to complete the 60 question multiple-choice section.Total scores on the multiple-choice section are based on the number of questions answered correctly. Points are not deducted for incorrect answers and no points are awarded for unanswered questions.Section II: Free-ResponseYoull have 60 minutes for the free-response section, including a mandatory 10-minute reading period. During the reading period, use the green insert to sketch graphs, make notes, and plan your essays. In your final essay answers, clearly label all graphs. After you finish the reading period, youll have 50 minutes to complete one long and two short essay questions. Fifty percent of the section score is based on the long essay while each short essay contributes one-quarter to the free-response score.The essays usually require that you link two or more content areas, analyze an economic situation, and evaluate general macroeconomic principles. The best essays demonstrate analytical and organizational skills, and when needed, incorporate diagrams that clarify the analysis. Some questions include graphs that youll have to interpret while some others ask you to provide the graphs.Scoring the ExamWondering how your final score will be tallied? For the Macroeconomics Exam, the multiple-choice section accounts for two-thirds of the grade and the free-response section is the final one-third.Scoring ChangesBeginning with the May 2011 AP Exam administration, there will be a change to the way AP Exams are scored. Total scores on the multiple-choice section will be based on the number of questions answered correctly. Points will no longer be deducted for incorrect answers and, as always, no points will be awarded for unanswered questions.Things about Multiple Choice Portion First 10 tend to be much easier Last 10 to 20 are more difficult questions Combine that with time crunch and testing fatigue and it creates real challenges for students Key is to know the answer without looking at the 5 choices As you read the stem, formulate the answer you are looking for in the choices 2 types of MC questions Vocab incredibly obvious IF you know the vocabulary Connection multiple layers of information required and normally an application of this information Examples of 2 types of MC (vocabulary based)1. Suppose that the consumer price index rises from 100 to 200. From this information we may conclude thatA. each persons real income is cut in halfB. consumer incomes are doubledC. the prices in an average consumers market basket are doubledD. all consumer goods prices are doubledE. all prices in the economy are doubled*If you know what the CPI is and the definition, you know to look for the market basket, C*2. Suppose that a national government increased deficit spending on goods and services, increasing its demand for loanable funds. In the long run, this policy would most likely result in which of the following changes in this country?Interest Rates InvestmentA. decrease decrease B. decrease increaseC. increase decreaseD. increase no changeE. no change increase*You would first need to know why deficit spending mattered, then know how an increase in demand would affect th