AP Macro Review Questions with Correct Answers

AP Macro Review Questions with
Correct Answers


A production possibilities curve that is concave to the origin (bowed out) implies that as more of a

good is produced the opportunity cost




(A) remains constant

(B) decreases

(C) decreases at first and then increases

(D) Increases


(E) Increases at first and then decreases - ANSWER✔✔-D


In the long run, government subsidies that promote the development of technology with widespread

business applications will have which of the following effects?




(A) A negative supply shock and lower PL

(B) A negative supply shock and lower econ growth rate

(C) A positive supply shock and lower PL


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, (D) A positive supply shock and lower econ growth rate


(E) A lower aggregate demand and lower PL - ANSWER✔✔-C


Olivia volunteers full time at an animal shelter and will not accept any offers for a paid job for the

next six months. Olivia is




(A) cyclically unemployed

(B) Not in the labor force

(C) employed

(D) structurally unemployed


(E) a seasonal worker - ANSWER✔✔-B


With an expansionary fiscal policy, what will most likely happen to the real gross domestic product

(GDP) and the nominal interest rate in the short run?




REAL GDP NI Rate

(A) Increase Decrease

(B) Increase Increase

(C) No change No change

(D) Decrease Increase


(E) Decrease Decrease - ANSWER✔✔-B


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