AP® practice test

Free AP® Macroeconomics Practice Test (2026)

This is a set of 25 original practice questions that follow the official AP® Macroeconomics course outline and its unit weights for the multiple-choice section, each with a short explanation. Many ask you to calculate a value or to reason through a graph described in words, as the real exam often does.

  • 25 questions
  • 6 topics from the official outline
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The practice test

25 questions

Question 1 of 25In a country, 141 million people are employed, 9 million are unemployed, and 50 million adults are not in the labor force. What is the unemployment rate?
Question 2 of 25In an economy with ample reserves, such as the United States today, the central bank wants to raise short-term interest rates to fight inflation. Which action would it most likely take?
Question 3 of 25The marginal propensity to save is 0.2. If government purchases rise by $40 billion, what is the maximum possible increase in real GDP?
Question 4 of 25An economy's production possibilities curve for wheat and cloth is bowed outward (concave to the origin). What does that shape show?
Question 5 of 25A central bank keeps using expansionary policy to hold unemployment below its natural rate. According to the Phillips curve model, what happens in the long run?
Question 6 of 25American consumers start buying many more goods made in the euro area. In the foreign exchange market for euros (priced in dollars), what happens?
Question 7 of 25A commercial bank has $100,000 in demand deposits and $25,000 in reserves, and the required reserve ratio is 20%. What is the most this single bank can lend right now?
Question 8 of 25Which of the following would shift the aggregate demand curve to the left?
Question 9 of 25In one year an economy has consumption spending of $600 billion, gross private investment of $150 billion, government purchases of $200 billion, exports of $80 billion, imports of $100 billion, and government transfer payments of $50 billion. What is GDP?
Question 10 of 25In the equation of exchange (MV = PQ), velocity is constant. If the money supply grows by 5% a year and real output grows by 2% a year, what is the approximate inflation rate?
Question 11 of 25Households decide to save a larger share of their incomes. In the loanable funds market, what happens?
Question 12 of 25In one hour, a worker in Country X can make 10 shirts or 5 radios, and a worker in Country Y can make 6 shirts or 6 radios. If X exports shirts and Y exports radios, which terms of trade would let both countries gain?
Question 13 of 25The world price of oil, a key input for many firms, falls sharply. In the AD–AS model, what happens in the short run?
Question 14 of 25A sudden, large rise in energy prices hits the economy. How does this show up in the Phillips curve model?
Question 15 of 25When an economy is producing exactly at its full-employment level of output, which type of unemployment is zero?
Question 16 of 25Real interest rates in the United States rise relative to those in other countries. Other things equal, what happens to the dollar and to US net exports?
Question 17 of 25In an economy with limited reserves, the required reserve ratio is 10%, banks lend out all excess reserves, and people keep all their money as bank deposits. The central bank buys $5 million of government bonds on the open market. What is the maximum increase in the money supply?
Question 18 of 25Which of the following would most likely shift the long-run aggregate supply curve to the right?
Question 19 of 25The MPC is 0.8. The government raises its purchases by $50 billion and pays for them with a $50 billion tax increase. What is the maximum change in real GDP?
Question 20 of 25This year a worker earns $22.00 an hour, and the consumer price index is 110 (base year = 100). What is her hourly wage in base-year dollars?
Question 21 of 25A government pays for higher spending by borrowing. How can this crowd out private investment?
Question 22 of 25A bank makes a one-year loan at a 6% nominal interest rate, expecting 2% inflation. Inflation turns out to be 4%. Who gains from the surprise?
Question 23 of 25An economy is in a recessionary (negative) output gap, and neither the government nor the central bank takes any action. If wages and prices are flexible, what happens in the long run?
Question 24 of 25A country's current account shows a deficit of $50 billion for the year. In the balance of payments, what must its capital and financial account (CFA) show?
Question 25 of 25A government starts the year with a national debt of $20 trillion. During the year it spends $4.2 trillion and collects $3.8 trillion in taxes. What are its budget balance for the year and its debt at the end of the year?

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