Looking for the best AP® Macroeconomics review guide for the 2024 AP® exam? Then you’ve come to the right place. In this post, we’ll go over the latest exam changes, what units are covered, practice resources to review, and wrap up with some AP® Macro study tips and things to remember.
Are you ready? Let’s get started.
What We Review
What’s the Format of the AP® Macroeconomics Exam?
The AP® Macroeconomics Exam includes two sections. The first section has 60 multiple-choice questions (MCQs). The second section is the free-response section (FRQs), which includes one long question and two short questions.
| Section | # of Questions | Time Limit | % of Overall Score |
|---|---|---|---|
| 1: Multiple Choice (MCQs) | 60 Questions | 1 Hour 10 Minutes | 66% of Exam Score |
| 2: Free Response (FRQs) | 1 Long Essay 2 Short Answer | 1 Hour (includes a 10-minute reading period) | 33% of Exam Score |
Are calculators allowed on the 2024 AP® Macroeconomics exam?
Yes! Starting with the 2023 exam, a four-function calculator is permitted for use on both sections of the AP® Macroeconomics exam.
A four-function calculator is allowed. Scientific or graphing calculators and calculators with storage capabilities are not allowed.
For more info, check out the official calculator policy here.
What Topics Are on the 2024 AP® Macroeconomics Exam?
The 2024 AP® Macroeconomics exam will cover all 6 units from the course and exam description. Use the following list to make sure you are prepared for any topic that may show up on your particular exam!
Unit 1: Basic Economic Concepts
- define scarcity and economic resources
- define (using graphs as appropriate) the PPC and related terms
- explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions
- calculate (using data from PPCs or tables as appropriate) opportunity cost
- define absolute advantage and comparative advantage
- determine (using data from PPCs or tables as appropriate) absolute and comparative advantage
- explain (using data from PPCs or tables as appropriate) how specialization according to comparative advantage with appropriate terms of trade can lead to gains from trade
- calculate (using data from PPCs or tables as appropriate) mutually beneficial terms of trade
- define (using graphs as appropriate) the law of demand
- explain (using graphs as appropriate) the determinants of demand
- define (using graphs as appropriate) the law of supply
- explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied
- explain (using graphs as appropriate) the determinants of supply
- define (using graphs as appropriate) market equilibrium
- define a surplus and shortage
- explain (using graphs as appropriate) how prices adjust to restore equilibrium in markets that are experiencing imbalances
- calculate (using graphs as appropriate) the surplus or shortage in the market experience an imbalance
- explain (using graphs as appropriate) how changes in demand and supply affect equilibrium price and equilibrium quantity
Unit 2: Economic Indicators and the Business Cycle
- define (using the circular flow diagram as appropriate) how GDP is measured and its components
- calculate nominal GDP
- define the limitations of GDP
- define the labor force, the unemployment rate, and the labor force participation rate
- explain how changes in employment and the labor market affect the unemployment rate and the labor force participation rate
- calculate the unemployment rate and the labor force participation rate
- define the limitations of the unemployment rate
- define the types of unemployment and the natural rate of unemployment
- explain changes in the types of unemployment
- define the consumer price index (CPI), inflation, deflation, disinflation, the inflation rate, and real variables
- explain how price indices can be used to calculate the inflation rate and to compare nominal variables over time periods
- calculate the CPI, the inflation rate, and changes in real variables
- define the shortcomings of the CPI as a true measure of inflation
- explain the costs that unexpected inflation (deflation) imposes on individuals and the economy
- define nominal GDP and real GDP
- calculate real GDP and the GDP deflator
- define (using graphs and data as appropriate) turning points and phases of the business cycle
- explain (using graphs and data as appropriate) turning points and phases of the business cycle
Unit 3: National Income and Price Determination
- define (using graphs as appropriate) the aggregate demand (AD) curve
- explain (using graphs as appropriate) the slope of the AD curve and its determinants
- define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save
- explain how changes in spending and taxes lead to changes in real GDP
- calculate how changes in spending and taxes lead to changes in real GDP
- define (using graphs as appropriate) the short-run aggregate supply (SRAS) curve
- explain (using graphs as appropriate) the slope of the SRAS curve and its determinants
- explain (using graphs as appropriate) how movement along the SRAS curve implies a relationship between the price level (and inflation) and unemployment
- define (using graphs as appropriate) the short run and the long run
- define (using graphs as appropriate) the long-run aggregate supply (LRAS) curve
- explain (using graphs as appropriate) the short-run and long-run equilibrium price level and output level
- explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the short run
- explain (using graphs as appropriate) the response of output, employment, and the price level to an aggregate demand or aggregate supply shock in the long run
- define fiscal policy and related terms.
- explain (using graphs as appropriate) the short-run effects of a fiscal policy action.
- calculate the short-run effects of a fiscal policy action
- define why there are lags to discretionary fiscal policy
- define automatic stabilizers and explain how they moderate business cycles
Unit 4: Financial Sector
- define the principal attributes—liquidity, rate of return, and risk— associated with various classes of financial assets, including money
- explain the relationship between the price of previously issued bonds and interest rates
- define the nominal and real interest rate
- explain the relationship between changes in nominal interest rates, expected inflation, and real interest rates
- calculate the nominal and real interest rate
- define money and its functions
- calculate (using data as appropriate) measures of money
- define key terms related to the banking system and the expansion of the money supply
- explain how the banking system creates and expands the money supply
- calculate (using data and balance sheets as appropriate) the effects of changes in the banking system
- define (using graphs as appropriate) the money market, money demand, and money supply
- explain (using graphs as appropriate) the relationship between the nominal interest rate and the quantity of money demanded (supplied)
- define (using graphs as appropriate) equilibrium in the money market
- explain (using graphs as appropriate) how nominal interest rates adjust to restore equilibrium in the money market
- explain (using graphs as appropriate) the determinants of demand and supply in the money market
- explain (using graphs as appropriate) how changes in demand and supply in the money market affect the equilibrium nominal interest rate
- define monetary policy and related terms
- explain (using graphs as appropriate) the short-run effects of a monetary policy action
- calculate (using data and balance sheets as appropriate) the effects of a monetary policy action
- define why there are lags to monetary policy
- define (using graphs as appropriate) the loanable funds market, demand for loanable funds, and supply of loanable funds
- explain (using graphs as appropriate) the relationship between the real interest rate and the quantity of loanable funds demanded (supplied)
- define national savings in both a closed and an open economy
- define (using graphs as appropriate) equilibrium in the loanable funds market
- explain (using graphs as appropriate) how real interest rates adjust to restore equilibrium in the loanable funds market
- explain (using graphs as appropriate) the determinants of demand and supply in the loanable funds market
- explain (using graphs as appropriate) how changes in demand and supply in the loanable funds market affect the equilibrium real interest rate and equilibrium quantity of loanable funds
- explain the difference in monetary policy in economies with limited reserves and ample reserves
Unit 5: Long-Run Consequences of Stabilization Policies
- explain (using graphs as appropriate) the effects of combined fiscal and monetary policy actions
- define (using graphs as appropriate) the short-run Phillips curve and the long-run Phillips curve
- explain (using graphs as appropriate) short-run and long-run equilibrium in the Phillips curve model
- explain (using graphs as appropriate) the response of unemployment and inflation in the short run and in the long run
- explain (using graphs as appropriate) how inflation is a monetary phenomenon
- define the quantity theory of money
- calculate the money supply, velocity, the price level, and real output using the quantity theory of money
- define the government budget surplus (deficit) and national debt
- explain the issues involved with the burden of the national debt
- define crowding out
- explain (using graphs as appropriate) how fiscal policy may cause crowding out
- define measures and determinants of economic growth
- explain (using graphs and data as appropriate) the determinants of economic growth
- calculate (using graphs and data as appropriate) per capita GDP and economic growth
- explain (using graphs as appropriate) how the PPC is related to the long-run aggregate supply (LRAS) curve
- explain (using graphs as appropriate) public policies aimed at influencing long-run economic growth
- define supply-side fiscal policies
Unit 6 : Open Economy—International Trade and Finance
- define the current account (CA), the capital and financial account (CFA), and the balance of payments (BOP)
- explain how changes in the components of the CA and CFA affect a country’s BOP
- calculate the CA, the CFA, and the BOP
- define the exchange rate, currency appreciation, and currency depreciation
- explain how currencies are valued relative to one another
- calculate the value of one currency relative to another
- define the foreign exchange market, demand for currency, and supply of currency
- explain (using graphs as appropriate) the relationship between the exchange rate and the quantity of currency demanded (supplied)
- define (using graphs as appropriate) the equilibrium exchange rate
- explain (using graphs as appropriate) how exchange rates adjust to restore equilibrium in the foreign exchange market
- explain (using graphs as appropriate) the determinants of currency demand and supply
- explain (using graphs as appropriate) how changes in demand and supply in the foreign exchange market affect the equilibrium exchange rate
- explain (using graphs as appropriate) how changes in the value of a currency can lead to changes in a country’s net exports and aggregate demand
- explain (using graphs as appropriate) how differences in real interest rates across countries affect financial capital flows, foreign exchange markets, and loanable funds markets
Return to the Table of Contents
When is the 2024 AP® Macroeconomics exam?
The 2024 AP® Macroeconomics exam will be given using paper-and-pencil tests. The AP® Macroeconomics exams will take place on:
Friday, May 10, 2024, at 12pm local time
Curious about when other AP® exams are happening in 2024? View or download the complete AP® exam schedule here.
Return to the Table of Contents
Test Your Understanding: AP® Macroeconomics Multiple Choice Practice Questions
Use the following links to Albert’s AP® Macroeconomics course to see if you truly understand each of the units:
- 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
2024 AP® Macroeconomics Exam FRQ Practice
There are two types of FRQs on the AP® Macro exam: short answers and long answers.
Examples of Short Free-Response Questions
Example: 2019 Questions 2 and 3
Scoring: 2019 Questions 2 and 3 Scoring Sheet
Example: 2018 Questions 2 and 3
Scoring: 2018 Questions 2 and 3 Scoring Sheet
Examples of Long Free-Response Questions
Example: 2019 Question 1
Scoring: 2019 Question 1 Scoring Sheet
Example: 2019 (Set 2) Question 1
Scoring: 2019 (Set 2) Question 1 Scoring Sheet
More Practice FRQs for AP® Macroeconomics
For more examples of previous FRQs, check out the College Board archive for AP® Macroeconomics.
Get FRQs with included sample responses with a license to Albert’s AP® Macroeconomics.
To stay up to date and adjust your study plan accordingly, read our How to Study for Online AP® Exams guide.
Return to the Table of Contents
Additional AP® Macroeconomics Review Resources
AP® Macroeconomics can be pretty dry when it comes to content. Video tutorials reviewing concepts can be helpful to supplement your learning and review.
Below, we’ve linked to a handful of sites that feature helpful course notes or videos to help you master the core economic concepts tested. The best way to use these resources is to go through a unit and then check for understanding on Albert. When you feel confident, use past FRQs to practice your free-response answers.
CollegeBoard Classes on YouTube: If you are feeling a little foggy on any particular macro topic, head over to the College Board’s playlist of classes that have been recorded. You can watch and rewatch as needed until you feel you have mastered the topic.
Charles Feng’s Macroeconomics Study Guide: If you are looking for even more depth than the list of skills you should know that are provided above, peruse this very comprehensive study guide to make sure you check every box you can.
Khan Academy’s Economics Playlist: This playlist includes 122 videos breaking down many core topics covered on both the AP® Macroeconomics and AP® Microeconomics exams.
You can also consider these two resources:
- Read through the information for Units 1-6 in the AP® Macroeconomics Course and Exam Description released by the College Board. While it seems daunting, this comprehensive guide clearly outlines the objectives you will be tested on and indicates how you will be tested on this information. It also includes sample exam questions for further practice.
- Check out the AP® Macroeconomics Exam Tips on the College Board website for even more tips for the exam!
Summary: The Best AP® Macroeconomics Review Guide of 2024
We’ve covered a lot in this review guide for the AP® Macroeconomics exam. Here are some of the key takeaways:
- The AP® Macroeconomics exam will cover all of the units (1 through 6).
- Use Albert or a comparable practice tool to check your understanding of the key concepts that will appear on this year’s test.
- Refer to the FRQs we’ve selected, as they represent some of the FRQs that will appear on this year’s exam.
We hope you’ve found this AP® Macroeconomics review guide helpful.
