AP Macroeconomics

Introduction

What do you need to succeed?1) Basic Match Skills

2) Ability to analyze charts and graphs3) Learn specific equations and apply them in correct circumstances

In the end you will be able to draw, analyze, and shift six essential graphs

4) Production Possibilities Curve (PPC)5) Aggregate Demand and Supply Curve

6) The Phillips Curve7) The Money Market

8) Loanable Funds Market9) The Foreign Exchange Market

The Course (Simplified)

There are 3 major focuses… focusi… focusses???There are 3 Major Points in Macroeconomics1) Measuring the performance of the overall

economy2) How do government policies influence the

economy?3) How do countries interact

The Exam

Section 1: Multiple Choice• 60 Questions in 70 Minutes• 2/3 of total score

Section 2: FRQs• 3 questions in 50 minutes• 1/3 of total score• Begins with a mandatory 10 minute planning period

where you are allowed to read questions but not answer yet

Scoring

Although the scale changes year to year in general it looks like the following

Percent AP Score

Above 82% 5

66%-81% 4

57%-65% 3

47%-56% 2

Below 47% 1

FRQ Tips• FRQ #1 is always longer than the other 2 questions (and worth more points)

– It almost always starts with a question asking you to draw an aggregate demand and supply curve of some type

– Then the question works off the graph to other topics• Phillips Curve (55% of time)• Fiscal Policy (55% of time)• Monetary Policy (55% of time)• Loanable Funds (25% of time)• Foreign Exchange (25% of time)• Growth Policy (25% of time)

– Reoccurring topics include• How policies shift AS and AD• Monetary Policy and Open Market Operations• Showing Changes on the Short Run-Phillips Curve• Effects of Budget Deficits and Crowding Out• Changing exchange rates and impact on trade

FRQ Tips

• FRQs 2 and 3– Shorter and fewer parts– Include topics from 1 or maybe 2 units– Most Tested Topics• Foreign Exchange (50%)• Money Creation/Reserve Requirement (20%)• Loanable Funds (17%)• Balance of Payments (15%)• The Money Market (12%)• Comparative Advantage (10%)

FRQ Tips1) Read each question a number of times: Use the 10 minute planning

period. Econ is much more specific than government which is good and bad

2) Label Your Graph: The econ equivalent of “Closing the Loop”. This is where easy points are missed. Label axis, lines, arrows for shifts

3) When in doubt, draw it out: Even if it doesn’t ask, drawing it out will help

4) Circle key words“Identify”- Concise answer usually with words increase (up), decrease (down), or same“Explain”- Make sure you have the word “because” in your answer“Calculate”- The answer is a number

FRQ Tips

5) Never leave it blank: Even if you don’t know how to draw the graph, draw what you know. No penalty for wrong answers

6) Make a choice and stick with it: Stick with your answer (even if unsure) for the first part through the entire question. There can be consistency points

Video Competition

Sample #1

Sample #2

Sample #3