AP Macroeconomics Core Exam, 2026/2027 –
Comprehensive Assessment of Macroeconomic
Principles, Policy Analysis, and International
Finance|Just Released!!
Movement on Short-Run Phillips Curve - ANSWER--Shift
in AD (graph movement is in opposite direction)
Shift of Short-Run Phillips Curve - ANSWER--Shift in
SRAS (shift is in opposite direction)
Factors of Production - ANSWER--1. Land
2. Labor
3. Capital
4. Technology
,automatic stabilizers - ANSWER--Government program
that changes automatically depending of GDP and a
person's income
economics - ANSWER--study of how people and societies
use limited resources to satisfy unlimited wants; the
management of scarcity and choice
price ceiling - ANSWER--A legal maximum on the price at
which a good can be sold
price floor - ANSWER--A legal minimum on the price at
which a good can be sold
,depreciation vs. appreciation of a currency - ANSWER--
depreciation - decrease in VALUE of currency
app-The rise in value of one currency relative to another.
Excess reserves vs.
Required reserves - ANSWER---Reserves greater than the
required amounts.
-Reserves that a bank is legally required to hold, based on
its checking account deposits
income approach to GDP - ANSWER--calculating GDP by
adding up all earnings from resources used to produce
output in the nation during the year
, exports vs. imports - ANSWER--balance of trade
fiat money - ANSWER--Money that has value because the
government has ordered that it is an acceptable means to
pay debts
liquidity - ANSWER--Availability of resources to meet
short-term cash requirements.
neutrality of money - ANSWER--changes in the money
supply affect nominal but not real variables
utility - ANSWER--Ability or capacity of a good or service
to be useful and give satisfaction to someone.
Comprehensive Assessment of Macroeconomic
Principles, Policy Analysis, and International
Finance|Just Released!!
Movement on Short-Run Phillips Curve - ANSWER--Shift
in AD (graph movement is in opposite direction)
Shift of Short-Run Phillips Curve - ANSWER--Shift in
SRAS (shift is in opposite direction)
Factors of Production - ANSWER--1. Land
2. Labor
3. Capital
4. Technology
,automatic stabilizers - ANSWER--Government program
that changes automatically depending of GDP and a
person's income
economics - ANSWER--study of how people and societies
use limited resources to satisfy unlimited wants; the
management of scarcity and choice
price ceiling - ANSWER--A legal maximum on the price at
which a good can be sold
price floor - ANSWER--A legal minimum on the price at
which a good can be sold
,depreciation vs. appreciation of a currency - ANSWER--
depreciation - decrease in VALUE of currency
app-The rise in value of one currency relative to another.
Excess reserves vs.
Required reserves - ANSWER---Reserves greater than the
required amounts.
-Reserves that a bank is legally required to hold, based on
its checking account deposits
income approach to GDP - ANSWER--calculating GDP by
adding up all earnings from resources used to produce
output in the nation during the year
, exports vs. imports - ANSWER--balance of trade
fiat money - ANSWER--Money that has value because the
government has ordered that it is an acceptable means to
pay debts
liquidity - ANSWER--Availability of resources to meet
short-term cash requirements.
neutrality of money - ANSWER--changes in the money
supply affect nominal but not real variables
utility - ANSWER--Ability or capacity of a good or service
to be useful and give satisfaction to someone.
