Question bank / Advanced Placement / AP Macroeconomics AP Macroeconomics practice questions Original, AI-authored English practice with worked guidance. Selected topics only; independent teacher review is pending. This is not a complete syllabus, official past-paper collection or predicted exam score. SubjectScout is not affiliated with or endorsed by College Board. SAT practice is not a full adaptive test; AP practice does not simulate an entire exam.
18 original questions across 6 selected topic areas. No account or payment required to practise.
All topics Unit 1: Basic Economic Concepts (1) Unit 2: Economic Indicators and the Business Cycle (3) Unit 3: National Income and Price Determination (3) Unit 4: Financial Sector (4) Unit 5: Long-Run Consequences of Stabilization Policies (4) Unit 6: Open Economy - International Trade and Finance (3) Official AP framework reference (framework only, not a source of copied questions).
Topic All topics Unit 1: Basic Economic Concepts Unit 2: Economic Indicators and the Business Cycle Unit 3: National Income and Price Determination Unit 4: Financial Sector Unit 5: Long-Run Consequences of Stabilization Policies Unit 6: Open Economy - International Trade and Finance Practice view All questions Unanswered Bookmarked Review mistakes Difficulty All levels Foundation Standard Challenge Search questions
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Loading saved progress Question 1 · Unit 1: Basic Economic Concepts · foundation
An economy is producing inside its current production possibilities curve because some workers and machines are idle. Resources and technology do not change. Which change represents more efficient resource use rather than economic growth? A. The entire production possibilities curve shifts outward.B. The economy loses productive machines.C. Production moves from the interior to a point on the existing curve.D. The economy produces beyond the curve without any resource change.Check answer Question 2 · Unit 2: Economic Indicators and the Business Cycle · standard
Nominal GDP is $1,080 billion and the GDP deflator is 120, with the base year set to 100. What is real GDP in base-year prices? A. $900 billionB. $1,296 billionC. $960 billionD. $1,080 billionCheck answer Question 3 · Unit 3: National Income and Price Determination · standard
In a simple closed-economy spending model, MPC = 0.75. Government purchases rise by $20 billion. Assume fixed prices, sufficient idle capacity, lump-sum taxes unchanged, and no crowding out or imports. What is the resulting equilibrium real GDP increase? A. $15 billionB. $20 billionC. $60 billionD. $80 billionCheck answer Question 4 · Unit 3: National Income and Price Determination · standard
In an AD-AS model with downward-sloping AD and upward-sloping SRAS, an unexpected input-cost increase affects producers throughout the economy. Hold AD, productive capacity, and other determinants fixed. What happens to short-run equilibrium real output and the price level? A. Output rises and the price level falls.B. Output falls and the price level rises.C. Both rise.D. Both fall.Check answer Question 5 · Unit 4: Financial Sector · foundation
A one-year loan has a 7% nominal interest rate and expected inflation of 3%. Using the AP introductory approximation, what is its expected real interest rate? A. 10%B. 3%C. 4%D. 7%Check answer Question 6 · Unit 4: Financial Sector · standard
A central bank operates an ample-reserves system in which interest on reserve balances is its main policy tool. Other administered rates move consistently with policy. To restrain aggregate demand, which action and transmission are most consistent with this model, other things equal? A. Raise interest on reserves, tending to raise short-term rates and reduce interest-sensitive spending.B. Lower interest on reserves, tending to raise borrowing costs.C. Raise interest on reserves, guaranteeing that every bank stops lending.D. Keep all rates unchanged, which necessarily eliminates inflation immediately.Check answer Question 7 · Unit 5: Long-Run Consequences of Stabilization Policies · standard
In a closed-economy loanable-funds model, the government finances a larger deficit through increased borrowing. Private saving supply is unchanged and upward sloping; private investment demand is unchanged and downward sloping. Assume no monetary-policy offset. Which outcome illustrates crowding out? A. Real interest rates fall and private investment rises.B. Real interest rates and private investment both fall.C. Real interest rates remain fixed and private investment must rise.D. Real interest rates rise and private investment falls.Check answer Question 8 · Unit 5: Long-Run Consequences of Stabilization Policies · foundation
An economy improves workforce skills and acquires additional productive capital. Assume these changes raise potential output, with other determinants constant. What happens to its long-run aggregate supply curve? A. It shifts left because all investment reduces capacity.B. It shifts right because productive capacity increases.C. It stays fixed because only the price level determines potential output.D. It becomes the aggregate demand curve.Check answer Question 9 · Unit 6: Open Economy - International Trade and Finance · challenge
In a floating foreign-exchange market, the vertical axis is euros per US dollar. Europeans increase purchases of US goods, while the supply of dollars and other demand determinants remain unchanged. Assume downward-sloping dollar demand and upward-sloping dollar supply. What happens? A. Dollar demand shifts left and the dollar depreciates.B. Dollar supply shifts right and the dollar depreciates.C. Dollar demand shifts right and the dollar appreciates against the euro.D. The exchange rate cannot change under floating exchange rates.Check answer Question 10 · Unit 3: National Income and Price Determination · challenge
A simple closed-economy spending model has MPC = 0.8. Lump-sum taxes increase by $10 billion and government purchases stay constant. Assume fixed prices, idle capacity, no imports, no interest-rate response, and a constant MPC. What is the equilibrium real GDP change? A. -$40 billionB. -$50 billionC. -$8 billionD. +$40 billionCheck answer Question 11 · Unit 2: Economic Indicators and the Business Cycle · standard
A worker's nominal daily wage rises from $120 to $126 while the CPI rises from 100 to 110. Use CPI-adjusted base-period dollars. What is the new real daily wage, rounded to the nearest cent? A. $138.60B. $120.00C. $114.55D. $116.00Check answer Question 12 · Unit 2: Economic Indicators and the Business Cycle · standard
Among 1,200 civilian noninstitutionalized people age 16 or older, 810 are employed, 90 have no job, have actively sought work in the past four weeks and are available for work, and 300 are neither employed nor actively seeking work. None is on temporary layoff awaiting recall. What are the unemployment rate and labor-force participation rate? A. Unemployment 7.5%; participation 75%B. Unemployment 10%; participation 75%C. Unemployment 10%; participation 67.5%D. Unemployment 32.5%; participation 100%Check answer Question 13 · Unit 4: Financial Sector · standard
A default-free bond makes a single payment of $110 exactly one year from today and has no other payments. Its current price rises from $100 to $105. With maturity and payment fixed, what happens to the nominal one-year yield for a buyer paying the new price? A. It rises from 10% to approximately 14.29%.B. It stays at 10% because the payment is unchanged.C. It falls from 10% to 5%, exactly.D. It falls from 10% to approximately 4.76%.Check answer Question 14 · Unit 4: Financial Sector · challenge
In a simplified limited-reserves banking model, a central bank buys $1,000 of securities from a nonbank seller and credits the seller's checking account through its bank, adding $1,000 to bank reserves. Initially banks hold no excess reserves. The required reserve ratio is 20%; banks lend all available excess reserves, every loan is redeposited, and nobody holds extra currency. What are the maximum total increases in checking deposits and bank loans, including the initial transaction? A. Deposits $5,000; loans $4,000B. Deposits $4,000; loans $5,000C. Deposits $1,000; loans $800D. Deposits $5,000; loans $5,000Check answer Question 15 · Unit 6: Open Economy - International Trade and Finance · standard
A US exporter holds its dollar price at $200. The exchange rate rises from 0.80 euros per dollar to 1.00 euro per dollar. Ignoring shipping costs and taxes, what is the new euro price to a European buyer and its percentage change? A. 250 euros; increase 25%B. 200 euros; increase 20%C. 200 euros; increase 25%D. 160 euros; no changeCheck answer Question 16 · Unit 6: Open Economy - International Trade and Finance · standard
A country's expected real return on comparable financial assets rises above the corresponding returns abroad. Assume unchanged risk and expected exchange-rate movements, mobile financial capital, floating exchange rates, and other determinants fixed. Which financial-flow and currency response is expected? A. Net financial outflow and currency appreciationB. Net financial inflow and currency depreciationC. Net financial outflow and currency depreciationD. Net financial inflow and currency appreciationCheck answer Question 17 · Unit 5: Long-Run Consequences of Stabilization Policies · foundation
An economy's real GDP rises from $1,000 billion to $1,080 billion while its population rises from 50 million to 54 million. What is the percentage change in real GDP per capita? A. 0%B. 8%C. -8%D. 16%Check answer Question 18 · Unit 5: Long-Run Consequences of Stabilization Policies · standard
In a long-run quantity-theory model, the money supply doubles. Assume velocity is constant, real output stays at unchanged potential output, and prices fully adjust. What happens to the price level and nominal GDP? A. Price level unchanged; nominal GDP doublesB. Price level doubles; nominal GDP doublesC. Price level doubles; nominal GDP unchangedD. Price level and nominal GDP both quadrupleCheck answer All Advanced Placement subjects
