1|Page
AP Macroeconomics Core Exam||Verified Exam!!||,
2026/2027 – Comprehensive Assessment of
Macroeconomic Principles, Policy Analysis, and
International Finance||Newest Exam!!!
. The long-run Phillips curve indicates that there
are no trade-offs between
(A) aggregate demand and aggregate supply
(B) imports and exports
(C) consumption and investment
(D) consumption and saving
(E) inflation and unemployment - Answer-E
Assume that a country's government increases
borrowing. What will most likely happen to the
prices of previously issued bonds and the price
level in the short run?
Increase Increase
Increase Decrease
Increase No Change
,2|Page
Decrease Increase
Decrease Decrease - Answer-D
The graph above shows the foreign exchange
market for United States dollars in terms of
Japanese yen. Assume that there is an increase in
United States consumers' preference for Japanese
automobiles. Which of the following changes will
most likely take place in the market for dollars?
(A) It will take more yen to purchase the same
amount of dollars.
(B) The demand for dollars will increase.
(C) The supply of dollars will increase.
(D) Both the demand for and the supply of
dollars will decrease.
(E) There will be no change in the foreign
exchange market. - Answer-C
According to the data above, in which year was
real gross domestic product (GDP) the largest?
,3|Page
(A) 1980
(B) 1990
(C) 2000
(D) 2010
(E) 2015 - Answer-D
Which of the following will happen if a country's
government reduces business taxes?
(A) The short-run Phillips curve will shift to
the right.
(B) The short-run aggregate supply curve will
shift to the right.
(C) The long-run aggregate supply curve will
shift to the left.
(D) The aggregate demand curve will shift to
the left.
(E) The demand curve for loanable funds will
shift to the left. - Answer-B
A production possibilities curve that is concave to
the origin (bowed out) implies that as more of a
, 4|Page
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
price level
(B) A negative supply shock and lower economic
growth rate
(C) A positive supply shock and lower
price level
(D) A positive supply shock and lower economic
growth rate
(E) A lower aggregate demand and lower
AP Macroeconomics Core Exam||Verified Exam!!||,
2026/2027 – Comprehensive Assessment of
Macroeconomic Principles, Policy Analysis, and
International Finance||Newest Exam!!!
. The long-run Phillips curve indicates that there
are no trade-offs between
(A) aggregate demand and aggregate supply
(B) imports and exports
(C) consumption and investment
(D) consumption and saving
(E) inflation and unemployment - Answer-E
Assume that a country's government increases
borrowing. What will most likely happen to the
prices of previously issued bonds and the price
level in the short run?
Increase Increase
Increase Decrease
Increase No Change
,2|Page
Decrease Increase
Decrease Decrease - Answer-D
The graph above shows the foreign exchange
market for United States dollars in terms of
Japanese yen. Assume that there is an increase in
United States consumers' preference for Japanese
automobiles. Which of the following changes will
most likely take place in the market for dollars?
(A) It will take more yen to purchase the same
amount of dollars.
(B) The demand for dollars will increase.
(C) The supply of dollars will increase.
(D) Both the demand for and the supply of
dollars will decrease.
(E) There will be no change in the foreign
exchange market. - Answer-C
According to the data above, in which year was
real gross domestic product (GDP) the largest?
,3|Page
(A) 1980
(B) 1990
(C) 2000
(D) 2010
(E) 2015 - Answer-D
Which of the following will happen if a country's
government reduces business taxes?
(A) The short-run Phillips curve will shift to
the right.
(B) The short-run aggregate supply curve will
shift to the right.
(C) The long-run aggregate supply curve will
shift to the left.
(D) The aggregate demand curve will shift to
the left.
(E) The demand curve for loanable funds will
shift to the left. - Answer-B
A production possibilities curve that is concave to
the origin (bowed out) implies that as more of a
, 4|Page
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
price level
(B) A negative supply shock and lower economic
growth rate
(C) A positive supply shock and lower
price level
(D) A positive supply shock and lower economic
growth rate
(E) A lower aggregate demand and lower
