Common Errors in the 2014
AP Macroeconomics Exam
Advanced Placement Economics
Conference, 2014
Federal Reserve Bank of St. Louis
Arthur Raymond
Chief Reader, AP Macroeconomics
Muhlenberg College
Allentown, PA
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Outline of Discussion
1. The AP Macroeconomics Exam
• Construction
• Expectations
• Course Redesign
2. The AP Macroeconomics Reading
• The Rubric
• Scoring
3. Top Ten Errors on the 2014 AP Macro Exam
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AP Macroeconomics Exam:
Construction
1. The AP Syllabus Determines Content
2. Submission of Questions
3. The Test Development Committee
Clark Ross, Co-Chair: Davidson College, NC
Patti Brazill, Co-chair: Irondequoit High School, Rochester, NY
Sally Meek, (CBA) Plano West Senior High School, Plano, Texas
Uchenna Elike, Alabama A&M U., Normal, Alabama
Gabriel Sanchez, Bonita High School, La Verne, California
Nora Traum, North Carolina State U., Raleigh, North Carolina
Holly Jones, The Pennington School, Pennington, NJ
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ETS Test Development Specialists
Fekru Debebe
Marwa Hassan
Huanwei Zhao
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Committee in Las Vegas
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Committee Eating
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Committee Working
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AP Macroeconomics Exam:
Committee Expectations
• Preliminary Rubric outlined by Committee
• Committee’s Statement on Expected Response
“When answering the Macroeconomics or Microeconomics
free response questions, a student should respond clearly
and concisely. Including paragraphs or even full-sentence
responses is not always necessary; however, it is important
to address the verb prompts appropriately .”
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The AP Macroeconomics Exam:
Expectations – Cont’d
Common Prompts
“Show” means to use a diagram to illustrate your answer. Proper labeling of all
elements including the axes of the diagram is necessary to receive full credit.
“Explain” means to take the reader through all of the steps or linkages in the line
of economic reasoning. Graphs and symbols are acceptable as part of the
explanation. In some cases the “line of economic reasoning can be brief. The
student must decide what constitutes an explanation.
“Identify” means to provide a specific answer that might be a list or a label on a
graph, without any explanation or elaboration.
“Calculate” means to use mathematical operations to determine a specific
numerical response. In some cases, just the result of a calculation is required;
in other cases the process is requested. It is generally better, however, to
provide the process in case there is an arithmetic error. The process may
receive credit.
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The Macroeconomics Exam: Redesign
A redesign of both the Macro and Micro
Syllabi and Exams are underway. A Curriculum
Development and Assessment Committee
(CDAC) one for Micro and one for Macro have
been appointed and work is currently underway.
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The AP Macroeconomics Reading:
The Rubric
• Day R-3: Meeting of ETS TD Specialists, Question
Leaders (QLs), and Chief Reader (CR)
• Day R-2: Meeting I of QLs, Table Leaders (TLs),
and CR
• Day R-1: Meeting II of QLs, TLs, and CR
(Crossing the “Rubricon”)
• Day R 1 Meeting of QLs, TLs, and Readers
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The AP Macroeconomics Reading:
The Scoring
•
•
•
•
•
Sample Scoring
Round Robin Scoring
Live Scoring
TL to Reader Checks
Continuous Statistical Monitoring
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Raw Material
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Uche Says
Apply to be an
AP Reader
http://professionals.collegeboard.com/prof-dev/opportunities/become-ap-reader
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Error Number 10
Question 1 (e)
Based on the real interest rate change in part
(d), what is the effect on the long-run
economic growth rate?
(The real interest rate increased due to an increase
in government borrowing to finance spending.)
Decrease
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Error Number 9
Question 1 (c)
If the marginal propensity to consume is
equal to 0.75, calculate the maximum
possible change in real gross domestic
product that could result from the $100
billion increase in government spending.
$400 billion
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Error Number 8
Question 2 (a) (i)
Assume that the Federal Reserve targets a
lower federal funds rate. (i) Which open
market operation can the Federal Reserve use
to achieve the lower target?
Buy Bonds
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Error Number 7
Question 3 (b) (ii)
Based on the change in United States exports in
part (a), answer each of the following.
(i) Will the United States current account balance remain at zero,
be in surplus, or be in deficit?
(ii) What will happen to real gross domestic
product in the United States in the short
run? Explain.
(Exports Increased)
Increase because an increase in exports
increases aggregate demand.
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Error Number 6
Question 3 (c)
The South Korean currency is the won. Draw
a correctly labeled graph of the foreign
exchange market for the United States dollar.
Show the effect of the lower inflation rate in
the United States on the won price per
United Stated dollar.
There are two points. One for a proper graph
and one for showing shift and effect on won
price per US dollar. This point is about the
latter.
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Error Number 6
Question 3 (c) - Continued
e=Won/US $
S of $
e2
e1
D’ for $
D for $
Q of $
Also correct is a decrease in supply, or both. 20
Error Number 5
Question 1 (f)
Now assume that instead of financing the $100
billion increase in government spending by
borrowing, the United States government
increases taxes by $100 billion. With this equal
increase in government spending and taxes, will
the real gross domestic product increase,
decrease, or remain the same? Explain.
Increase
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Error Number 4
Question 2 (c)
Assume that the Federal Reserve buys
government bonds from commercial banks.
Based only on this transaction, will the level
of required reserves in the commercial banks
increase, decrease, or remain the same?
Remain the same
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Error Number 3
Question 2 (d)
Another monetary policy action involves the
discount rate. Define the discount rate.
The discount rate is the interest rate charged
by the Federal Reserve to commercial banks
for funds borrowed from the Federal
Reserve.
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Error Number 2
Question 1 (f)
Now assume that instead of financing the $100 billion
increase in government spending by borrowing, the United
States government increases taxes by $100 billion. With this
equal increase in government spending and taxes, will the
real gross domestic product increase, decrease, or remain
the same? Explain.
Real GDP increases because the multiplier for
government spending is larger than the
multiplier for taxes.
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Error Number 1
Question 1 (e)
Based on the real interest rate change in part (d), what is the
effect on the long-run economic growth rate? Explain.
(The real interest rate increased due to an increase in
government borrowing to finance spending.)
The economic growth rate decreases because a
higher real interest rate reduces the growth
rate of the capital stock.
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