AP Macroeconomics

About the Advanced Placement Program® (AP®)

The Advanced Placement Program® has enabled millions of students to take college-level courses and earn college credit, advanced placement, or
both, while still in high school. AP Exams are given each year in May. Students who earn a qualifying score on an AP Exam are typically eligible, in
college, to receive credit, placement into advanced courses, or both. Every aspect of AP course and exam development is the result of collaboration
between AP teachers and college faculty. They work together to develop AP courses and exams, set scoring standards, and score the exams. College
faculty review every AP teacher’s course syllabus.
■ Unit 1: Basic Economic Concepts
AP Economics Program ■ Unit 2: Economic Indicators and the Business Cycle
■ Unit 3: National Income and Price Determination
The AP Program offers two courses in economics: AP
Macroeconomics and AP Microeconomics. Each course corresponds ■ Unit 4: Financial Sector
to one semester of a typical introductory college course in economics. ■ Unit 5: Long-Run Consequences of Stabilization Policies
AP Macroeconomics focuses on the principles that apply to an
■ Unit 6: Open Economy—International Trade and Finance
economic system as a whole. AP Microeconomics focuses on the
principles of economics that apply to the functions of individual Each unit is broken down into teachable segments called topics.
decision-makers, both consumers and producers, within the economic
In addition, the following big ideas serve as the foundation of the
system.
course, enabling students to create meaningful connections among
concepts and develop deeper conceptual understanding:
AP Macroeconomics Course Overview ■ Big Idea 1: Economic Measurements
■ Big Idea 2: Markets
AP Macroeconomics is a college-level course that introduces students
to the principles that apply to an economic system as a whole. The ■ Big Idea 3: Macroeconomic Models
course places particular emphasis on the study of national income ■ Big Idea 4: Macroeconomic Policies
and price-level determination. It also develops students’ familiarity
with economic performance measures, the financial sector,
Course Skills
stabilization policies, economic growth, and international economics.
Students learn to use graphs, charts, and data to analyze, describe, The following skill categories describe what skills students should
and explain economic concepts. develop during the course:
AP Macroeconomics is equivalent to a one-semester introductory ■ Principles and Models
college course in economics. ♦ Define economic principles and models.
■ Interpretation
RECOMMENDED PREREQUISITES
♦ Explain given economic outcomes.
There are no prerequisites for AP Macroeconomics. Students should
■ Manipulation
be able to read a college-level textbook and possess basic
mathematics and graphing skills. ♦ Determine outcomes of specific economic situations.
■ Graphing and Visuals
AP Macroeconomics Course Content ♦ Model economic situations using graphs or visual
representations.
The course content is organized into six commonly taught units, which
have been arranged in the following suggested, logical sequence:
AP Macroeconomics Exam Structure

AP MACROECONOMICS EXAM: 2 HOURS, 10 MINUTES Format of Assessment

Assessment Overview Section I: Multiple-choice | 60 Questions | 70 Minutes |
66.65% of Exam Score
The AP Macroeconomics Exam assesses student understanding of
the skills and learning objectives outlined in the course framework. The ■ The multiple-choice questions will assess students’ ability to
exam is 2 hours and 10 minutes long and includes 60 multiple-choice define economic principles and models, explain given economic
questions and 3 free-response questions.
outcomes, and determine outcomes of specific economic
situations.
■ Approximately one-fifth of multiple-choice questions will include
analyzing numbers or performing calculations.

Section II: Free-response | 3 Questions | 60 minutes

33.35% of Exam Score

■ All four skill categories will be assessed in 3 free-response

questions:
♦ Question 1: Long (10 points)
♦ Question 2: Short (5 points)
♦ Question 3: Short (5 points)

Exam Components

Sample Multiple-Choice Question

The graph shows the production possibilities curve for a small township that is
deciding to build parks and gymnasiums. Which of the following combinations
of parks and gymnasiums is unattainable given the township’s available
resources?

(A) 5 parks and 6 gymnasiums

(B) 5 parks and 8 gymnasiums
(C) 10 parks and 6 gymnasiums
(D) 15 parks and 4 gymnasiums
(E) 20 parks and 4 gymnasiums

Correct Answer: E

Sample Free-Response Question

Country X has a fractional reserve banking system. The reserve requirement is 25%, and the banks in Country X hold no excess reserves.
Assume Mary deposits $100,000 in Bank A in Country X.

(a) Calculate the maximum amount of loans that Bank A could make as a result of Mary’s deposit. Show your work.
(b) Calculate the maximum possible change in demand deposits in the banking system of Country X as a result of Mary’s deposit. Show your
work.
(c) Is the maximum possible change in the money supply in the banking system of Country X greater than, less than, or equal to the maximum
possible change in demand deposits identified in part (b) as a result of Mary’s deposit? Explain.
(d) Draw a correctly labeled graph of the money market. Show the effect of the change in the money supply on the nominal interest rate.

Educators: apcentral.collegeboard.org/courses/ap-macroeconomics
Students: apstudents.collegeboard.org/courses/ap-macroeconomics

© 2021 College Board. 00558-040 (Updated January 2021)