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AP Macroeconomics Test Questions

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free ap macroeconomics practice test

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AP Macroeconomics Exam Preparation

ap macroeconomics questions ap macroeconomics test prep


Q:1-What is a reserve requirement?
Mark one answer:

the ability to easily turn an asset into cash.
A medium of exchange.
The amount of money that a bank donates to favorable politicians.
The percentage of cash that must be held by the bank and not loaned out or used to invest.



Q:2-If the Federal Reserve sells $500,000 of bonds in the open market, and the reserve rate is 25%, the money supply
Mark one answer:

Increases by $2 million.
Increases by $37.5 million.
Decreases by $37.5 million.
Decreases by $2 million.


Q:3-If firms that manufacture a good expect its price to rise in the future,
Mark one answer:

They will decrease supply of the product in the future.
They will decrease supply of the product right now.
Supply will not change, right now or in the future.
Supply will not change right now, but may in the future.


Q:4-Stuart receives a $5,000 bonus. He spends $4,000 of it on a hot tub and saves the rest. What is Stuart's Marginal Propensity to Consume?
Mark one answer:

1.5
0.8
0.25
0.5


Q:5-Economic growth
Mark one answer:

benefits low and high-income people equally.
has been positive in the United States since World War II.
is a key indicator used to determine standard of living.
only happens when the unemployment rate declines.


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Q:6-Which branch of economics is based on the scientific method?
Mark one answer:

Normative economics.
Positive economics.
Microeconomics.
Macroeconomics.


Q:7-Which of the following is not included in M2?
Mark one answer:

Computer.
Savings account.
Coins.
Checks.


Q:8-Which of the following would NOT shift the aggregate demand curve?
Mark one answer:

Changing consumer tastes.
Negative publicity for the company.
A decrease in productivity.
An advertising blitz.


Q:9-Which of the following is NOT a determinant of demand?
Mark one answer:

Productivity.
Price of the product.
Consumer tastes.
Income.


Q:10-GNP is a measure of
Mark one answer:

Production by a nation's citizens.
Production within a nation's borders.
The wealth of a nation.
Worldwide production.



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