AP Macroeconomics Ultimate Review
Breakdown of the test:
66%: Multiple Choice
- 70 min. to complete 60 questions
33%: Free Response
- 60 min. to complete 3 FRQs
- 50%: 1 long essay question (30 min.)
- 25%: 2 short essay questions (2x 15 min.)
Important graphs to know:
 PPC (Production Possibilities Curve)
 Supply and Demand
 Loanable Funds Market
 Money Market
 *Foreign Exchange Market
 Aggregate Supply and Demand
 Phillips Curve (Short & Long)
 Investment Demand
What to review:
20-30%: Stabilization Policies
12-16%: Economic Performance
- Fiscal and monetary policy
- National income
- Phillips curve
- Inflation measurements
15-20%: Financial Sector
- Unemployment
- Money, banking, and financial markets
8-12%: Basic Economic Concepts
- Loanable funds market
- Vocabulary
- Central bank and control of the money
- Comparative advantage v. absolute advantage
supply
- Demand, supply, and market equilibrium
10-15%: National Income and Price
5-10%: Economic Growth
Determination
- Definition of economic growth
- Aggregate supply
- Determinants of economic growth
- Aggregate demand
- Macroeconomic equilibrium
10-15%: Open Economy
- FOREX
- Imports, exports, and financial capital
- Relationships between int’l and domestic markets
Key Formulas to know: