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AP Macro Practice Test - Denton ISD

AP Macro MC Practice test with Practice AP Macroeconomics Test 1. Which of the following correctly describes the components of Aggregate Demand? A. Consumption expenditures + Investment expenditures + Government expenditures + Exports + Imports B. Consumption expenditures + Investment expenditures + Government expenditures + Exports - Imports C. Consumption expenditures + Investment expenditures + Government expenditures - Exports - Imports D. Consumption expenditures + Investment expenditures + Government expenditures + Savings + Exports - Imports E. Consumption expenditures + Investment expenditures + Government expenditures + Business expenditures + Savings + Exports + Imports 2. Which of the following formulas is correctly stated? A. Real interest rate = nominal interest rate + anticipated inflation. B. Nominal interest rate = real interest rate + anticipated inflation.

E. Keynesian cross diagram 18. Which of the following combinations of policy moves would be recommended for an economy experiencing an annual increase in the inflation rate of 6% and an unemployment rate of 5%? A. increase government spending and increase the discount rate B. decrease government spending and decrease the reserve requirement

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