AP Macroeconomics Advanced Placement Macroeconomics is an Advanced Placement macroeconomics course for high school students culminating in an exam offered by the College Board . Study begins with fundamental economic concepts such as scarcity , opportunity costs , production possibilities , specialization, comparative advantage , demand , supply , and price determination . Major topics include measurement of economic performance, national income and price determination, fiscal and monetary policy , and international economics and growth . AP Macroeconomics is frequently taught in conjunction with AP Microeconomics , although more students take the former.Topic outline Basic Economic Concepts (8–12%) Scarcity, choice , and opportunity costs Production possibilities curve Comparative advantage, absolute advantage , specialization, and exchange Demand, supply, and market equilibrium Macroeconomic issues: business cycle , unemployment , inflation , growthMeasurement of Economic Performance (12–16%) National income accounts *Circular flow *Gross domestic product *Components of gross domestic product *Real versus nominal gross domestic product Inflation measurement and adjustment *Price indices *Nominal and real values *Costs of inflation Unemployment *Definition and measurement *Types of unemployment *Natural rate of unemployment National Income and Price Determination ">Price determination">Price Determination (10–15%) Aggregate demand *Determinants of aggregate demand *Multiplier and crowding-out effects Aggregate supply *Short-run and long-run analyses *Sticky versus flexible wages and prices *Determinants of aggregate supply Macroeconomic Equilibrium *Real output and price level *Short and long run *Actual versus full-employment output *Economic fluctuations Money, banking , and financial markets * Definition of financial assets: money, stocks, bonds * Time value of money * Measures of money supply * Banks and creation of money * Money demand * Money market * Loanable funds market Central bank and control of the money supply *Tools of central bank policy * Quantity theory of money * Real versus nominal interest rates Inflation, Unemployment , and Stabilization Policies (20–30%) Fiscal and monetary policies *Demand-side effects * Supply-side effects * Policy mix * Government deficits and debt Inflation and unemployment * Types of inflation * Demand-pull inflation * Cost-push inflation * The Phillips curve: short run versus long run * Role of expectations Economic Growth and Productivity: *Investment in human capital * Investment in physical capital *Research and development, and technological progress * Growth policyOpen Economy: International Trade and Finance (10–15%) Balance of payments accounts *Balance of trade * Current account * Capital account Foreign exchange market * Demand for and supply of foreign exchange * Exchange rate determination * Currency appreciation and depreciation Net exports and capital flows Links to financial and goods marketsExam 60 Questions in 70 Minutes Reflects Topic Outline Above Example: 3-6 Questions on Economic Growth. 3 Questions in 60 MinutesScore distribution The exam was first held in 1989, along with Microeconomics. Grade distributions since 2008 are as follows:Score 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 5 13.1% 13.9% 14.6% 16.1% 13.8% 16.1% 16.4% 18.2% 17.6% 19.5% 4 24.0% 23.9% 23.2% 23.2% 22.0% 23.4% 23.1% 22.5% 22.9% 24.8% 3 16.7% 18.0% 16.6% 18.5% 17.3% 16.2% 17.2% 16.7% 17.4% 18.3% 2 18.2% 17.8% 19.1% 17.5% 17.5% 17.5% 16.2% 17.3% 15.3% 16.2% 1 28.0% 26.3% 26.6% 24.7% 29.4% 26.8% 27.1% 25.3% 26.9% 21.2% Mean 2.76 2.81 2.80 2.89 2.73 2.85 2.86 2.91 Number of Students 90,134 99,903 108,219 117,209 126,267 138,638 141,649 146,673
Criticism Tawni Ferrarini, James Gwartney, and John Morton have written that the examination does not adequately cover recent advances in the field: "The AP macroeconomics exam and resources largely reflect the simplistic Keynesian view from the 1960s and 1970s." The College Board updates the AP Macroeconomics curriculum with the guidance of college and high school economics instructors. The most recent update was published in 2019.Study Resources
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