AP Macro Unit 2 Review Questions
(College Board) ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
Which of the following is true according to the circular flow model?
A. Firms are suppliers in both the product and factor markets.
B. Firms are demanders in the product markets and suppliers in the factor markets.
C. Households are demanders in both the product and factor markets.
D. Households are demanders in the product markets and suppliers in the factor markets.
E. The government is a demander in the product market only. - CORRECT
ANSWERS✅✅D
Which of the following groups of people would benefit from unanticipated inflation?
1. Savers
2. Borrowers
3. Lenders
A. 1 only
B. 2 only
C. 3 only
D. 1 and 2 only
E. 1 and 3 only - CORRECT ANSWERS✅✅B
The table below shows a country's macroeconomic data in 2013.
Consumption Spending ($175 billion)
Individual income taxes ($32 billion)
Private investment spending ($30 billion)
Corporate Taxes ($25 billion)
,Exports ($75 billion)
Government purchases ($40 billion)
Imports ($100 billion
The country's gross domestic product is
A. $220 billion
B. $282 billion
C. $304 billion
D. $309 billion
E. $347 billion - CORRECT ANSWERS✅✅A
If in a specified year nominal gross domestic product grew by 11 percent and real gross
domestic product grew by 4 percent, inflation for this year would be
A.-7%
B. 7%
C. 8%
D. 11%
E. 15% - CORRECT ANSWERS✅✅B
In 2007, the nominal gross domestic product (GDP) was $50 billion and the GDP deflator
was 200. Thus real GDP was
A. 150
B. 100
C. 50
D. 25
E. 4 - CORRECT ANSWERS✅✅D
, If a worker's nominal wage rate increases from $10 to $12 per hour and at the same time the
general price level increases by 10 percent, the worker's real wage has
A. approximately decreased by 10%
B. approximately decreased by 20%
C. approximately increased by 10%
D. approximately increased by 20%
E. not changed - CORRECT ANSWERS✅✅C
The value of which of the following is counted in the United States gross domestic product?
A. Clean air
B. Child care a father provides for his child
C. An automobile produced in Sweden by a United States firm
D. A car produced in the United States and sold in Europe
E. Medical services not provided due to preventative health care - CORRECT
ANSWERS✅✅D
Which of the following would cause the official unemployment rate to understate the
problem of unemployment?
A. Workers receiving unemployment compensation
B. Cyclically unemployed workers
C. Discouraged workers
D. Recent college graduates looking for work
E. Retirees - CORRECT ANSWERS✅✅C
In the circular flow diagram of a market economy, which of the following supplies the factors
of production?
A. The business sector
(College Board) ACTUAL UPDATED
QUESTIONS AND CORRECT ANSWERS
Which of the following is true according to the circular flow model?
A. Firms are suppliers in both the product and factor markets.
B. Firms are demanders in the product markets and suppliers in the factor markets.
C. Households are demanders in both the product and factor markets.
D. Households are demanders in the product markets and suppliers in the factor markets.
E. The government is a demander in the product market only. - CORRECT
ANSWERS✅✅D
Which of the following groups of people would benefit from unanticipated inflation?
1. Savers
2. Borrowers
3. Lenders
A. 1 only
B. 2 only
C. 3 only
D. 1 and 2 only
E. 1 and 3 only - CORRECT ANSWERS✅✅B
The table below shows a country's macroeconomic data in 2013.
Consumption Spending ($175 billion)
Individual income taxes ($32 billion)
Private investment spending ($30 billion)
Corporate Taxes ($25 billion)
,Exports ($75 billion)
Government purchases ($40 billion)
Imports ($100 billion
The country's gross domestic product is
A. $220 billion
B. $282 billion
C. $304 billion
D. $309 billion
E. $347 billion - CORRECT ANSWERS✅✅A
If in a specified year nominal gross domestic product grew by 11 percent and real gross
domestic product grew by 4 percent, inflation for this year would be
A.-7%
B. 7%
C. 8%
D. 11%
E. 15% - CORRECT ANSWERS✅✅B
In 2007, the nominal gross domestic product (GDP) was $50 billion and the GDP deflator
was 200. Thus real GDP was
A. 150
B. 100
C. 50
D. 25
E. 4 - CORRECT ANSWERS✅✅D
, If a worker's nominal wage rate increases from $10 to $12 per hour and at the same time the
general price level increases by 10 percent, the worker's real wage has
A. approximately decreased by 10%
B. approximately decreased by 20%
C. approximately increased by 10%
D. approximately increased by 20%
E. not changed - CORRECT ANSWERS✅✅C
The value of which of the following is counted in the United States gross domestic product?
A. Clean air
B. Child care a father provides for his child
C. An automobile produced in Sweden by a United States firm
D. A car produced in the United States and sold in Europe
E. Medical services not provided due to preventative health care - CORRECT
ANSWERS✅✅D
Which of the following would cause the official unemployment rate to understate the
problem of unemployment?
A. Workers receiving unemployment compensation
B. Cyclically unemployed workers
C. Discouraged workers
D. Recent college graduates looking for work
E. Retirees - CORRECT ANSWERS✅✅C
In the circular flow diagram of a market economy, which of the following supplies the factors
of production?
A. The business sector
