The Best AP® Macroeconomics Review Guide for 2024 | Albert Resources (2024)

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 QuestionsTime Limit% of Overall Score
1: Multiple Choice (MCQs)60 Questions1 Hour 10 Minutes66% 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 Best AP® Macroeconomics Review Guide for 2024 | Albert Resources (1)

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

The Best AP® Macroeconomics Review Guide for 2024 | Albert Resources (2)

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.

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.

The Best AP® Macroeconomics Review Guide for 2024 | Albert Resources (2024)

FAQs

What percent is a 5 on AP Macroeconomics? ›

75% or more = 5.

How hard is it to get a 5 in AP Macro? ›

How do I get a 5 on AP® Macroeconomics? Great question! First, it is important to note that on average, around 17% of test takers achieve the top score. It is definitely challenging, but by no means impossible.

How to study for macroeconomics AP exam? ›

How to do well on the AP Macroeconomics exam: scoring a 4 or 5
  1. Be familiar with the exam format: ...
  2. Review important concepts with videos and notes: ...
  3. Review important graphs and formulas: ...
  4. Invest in quality review tools: ...
  5. Focused study journal: ...
  6. Test strategies: ...
  7. Budget time wisely:

Is AP Macro easy to self study? ›

Lucky for you, AP Macro is one of the easier AP subjects to self-study. While teaching yourself an entire AP class won't be easy, it is entirely doable. You are about to embark on a difficult journey in learning economics, but one that will be entirely worth it.

Is a 70% a 5 on the AP exam? ›

Usually, a 70 to 75 percent out of 100 translates to a 5. However, there are some exams that are exceptions to this rule of thumb. The AP Grades that are reported to students, high schools, colleges, and universities in July are on AP's five-point scale: 5: Extremely well qualified.

How hard is the AP Macro exam 2024? ›

The overall average pass rate for the AP Macro exam is 63.2%, while the average pass rate for all AP exams combined is 71.13%. That means that statistically speaking, the AP Macro exam is about 8% “harder” than the average AP exam.

Is AP Macro or micro harder? ›

Most combined courses are organized accordingly, beginning with Microeconomics and progressing through Macroeconomics. Pass rates on the respective AP exams also suggest that Macroeconomics is slightly more challenging.

Which AP is the hardest? ›

  • 1) AP Physics 1.
  • 2) AP US History.
  • 3) AP Physics C: Electricity and Magnetism.
  • 4) AP Calculus BC.
  • 5) AP Chemistry.
  • 6) AP English Language and Composition.
  • 7) AP Biology.
  • 8) AP English Literature and Composition.
Jul 9, 2024

How do I ace macroeconomics exam? ›

The following strategies for answering the free-response questions will help you on exam day.
  1. Take advantage of the 10-minute planning time. ...
  2. Remember that you may answer the questions in any order. ...
  3. Don't restate the question. ...
  4. Use correct terminology. ...
  5. Use graphs wisely. ...
  6. Label graphs clearly, correctly, and fully.

How long does it take to prepare for AP Macroeconomics? ›

The Study Plan

Let's look at an ideal AP® Macroeconomics study plan to get you started. This plan is set up with the goal of getting a perfect 5 on the exam. You should expect to put in 8 – 12 hours of study in a week.

How to study macro economics? ›

The basic model used in macroeconomics to study economic fluctuations is the model of aggregate demand and aggregate supply. The model involves two variables: the economy's output, which is measured by real GDP, and the economy's overall price level, measured by a price index (usually the GDP deflator or CPI).

Is AP Econ or Gov harder? ›

In terms of workload, both classes require a fair amount of reading and assignments, but AP Economics might be a bit more challenging if you're completely new to the subject.

How many people got a 5 on AP Macro? ›

2024 Score Distributions‌: History & Social Science
Exam53+
AP Macroeconomics16%62%
AP Microeconomics17%65%
AP Psychology18%61%
AP United States Government & Politics24%73%
6 more rows

Do you need math for AP Macro? ›

RECOMMENDED PREREQUISITES

There are no prerequisites for AP Macroeconomics. Students should be able to read a college-level textbook and possess basic mathematics and graphing skills.

What percent is a 5 on the AP government exam? ›

What percent is a 5 on an AP Gov Exam? Students have to score an 80% or above to get a 5 on the exam. This would be scoring 96 or more points out of 120 on the test.

What percent correct is a 5 on AP stats? ›

For students aiming to secure a 5 on the AP Statistics exam, an estimated objective is to obtain between 75% and 80% of the maximum possible points on the test.

What is a 5 on the AP exam equal to? ›

Extremely well qualified A+

What percent of people get a 5 on AP Micro? ›

How do I get a 5 on AP® Microeconomics? That's the million-dollar question! First, consider that around 16% of test takers score a 5. It won't be easy, but it is certainly possible to earn the top score.

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