AP® Macroeconomics

Flashcards

216 cards with the terms and ideas you need to know cold. The ones you find hard come back sooner.

Multiple choice practice

329 exam-style questions, timed like the real exam, with every answer explained.

Practice exam

The whole multiple choice section: 60 questions in 1 hour 10 minutes, weighted by unit like the real exam. A fresh mix every time.

Must-know sheet

The facts, rules and terms to know cold on exam day, on one page. Filter it by unit, or print it.

Free-response practice

24 free-response questions like the ones on the exam. Score your answer with the rubric and a model answer, or sign in for free AI scoring.

Basic Economic Concepts

6 topics · 39 videos

• Scarcity means every choice has an opportunity cost
• The PPC shows what an economy can make and what it gives up
• Specializing by comparative advantage lets both sides gain from trade
• Prices move until quantity demanded equals quantity supplied
• A price change moves along a curve; anything else shifts the curve

Economic Indicators and the Business Cycle

7 topics · 44 videos

• Every dollar spent becomes someone's income
• GDP counts final goods and services produced inside a country
• Unemployment and inflation each have a formula and a blind spot
• Real values strip out the effect of changing prices
• The economy swings between expansion and recession around full-employment output

National Income and Price Determination

9 topics · 51 videos

• The AD–AS graph puts the price level on the vertical axis and real GDP on the horizontal axis
• A change in spending gets multiplied as it ripples through the economy
• Sticky wages and prices let output stray from full employment in the short run
• In the long run, wages and prices adjust and output returns to LRAS
• Fiscal policy uses government spending and taxes to close recessionary or inflationary gaps

Financial Sector

7 topics · 44 videos

• Bond prices and interest rates move in opposite directions
• Nominal interest rate = real interest rate + expected inflation
• Banks create money by lending out excess reserves
• Central banks steer interest rates to shift aggregate demand
• The money market sets the nominal rate; the loanable funds market sets the real rate

Long-Run Consequences of Stabilization Policies

7 topics · 41 videos

• The inflation–unemployment tradeoff only holds in the short run
• In the long run, faster money growth means more inflation, not more output
• Deficits add to the national debt
• Government borrowing can crowd out private investment
• Growth comes from more capital, better skills and new technology

Open Economy—International Trade and Finance

6 topics · 34 videos

• The current account and the capital and financial account balance each other
• An exchange rate is a price set by currency supply and demand
• A stronger currency makes exports harder to sell
• Investors send money where real interest rates are higher
• Policy at home ripples out through exchange rates