5 Steps to a 5: AP Macroeconomics 2022

by Eric Dodge

Overview

MATCHES THE LATEST EXAM!

Let us supplement your AP classroom experience with this easy-to-follow study guide!

The immensely popular 5 Steps to a 5: AP Macroeconomics guide has been updated for the 2021-22 school year and now contains:

• 3 full-length practice exams (available in the book and online) that reflect the latest exam
• Access to a robust online platform
• Comprehensive overview of the AP Macroeconomics exam format
• Hundreds of practice exercises with thorough answer explanations
• Review material and proven strategies specific to each section of the test
• A self-guided study plan including flashcards, games, and more online
  
  
  

Product Details

ISBN-13:	9781264267521
Publisher:	McGraw-Hill Professional Publishing
Publication date:	08/11/2021
Pages:	256
Product dimensions:	10.70(w) x 8.20(h) x 0.50(d)

About the Author

Eric Dodge is a professor of economics and chair of the Department of Economics and Business Administration at Hanover College in Hanover, Indiana.

Table of Contents

Preface vii

Acknowledgments ix

Note for the Educators xi

About the Author xiii

Introduction: The Five-Step Program xv

Step 1 Set Up Your Study Program

1 What You Need to Know About the AP Macroeconomics Exam 3

Background Information 3

Frequently Asked Questions About the AP Economics Exams 4

2 How to Plan Your Time 11

Three Approaches to Preparing for AP Exams 11

Calendar for Each Plan 13

Step 2 Determine Your Test Readiness

3 Take the Diagnostic Exam 19

Diagnostic Exam: Answer Sheet 21

Diagnostic Exam: AP Macroeconomics 23

Step 3 Develop Strategies for Success

4 How to Approach Each Question Type 43

Section I Multiple-Choice Questions 43

Section II Free-Response Questions 46

Step 4 Review the Knowledge You Need to Score High

5 Fundamentals of Economic Analysis 51

5.1 Scarce Resources 52

5.2 Production Possibilities 55

5.3 Functions of Economic Systems 61

6 Demand, Supply, Market Equilibrium, and Welfare Analysis 65

6.1 Demand 65

6.2 Supply 71

6.3 Market Equilibrium 74

7 Macroeconomic Measures of Performance 82

7.1 The Circular Flow Model 83

7.2 Accounting for Output and Income 84

7.3 Inflation and the Consumer Price Index 90

7.4 Unemployment 95

8 Consumption, Saving, Investment, and the Multiplier 101

8.1 Consumption and Saving 102

8.2 Investment 105

8.3 The Multiplier Effect 108

9 Aggregate Demand and Aggregate Supply 114

9.1 Aggregate Demand (AD) 114

9.2 Aggregate Supply (AS) 117

9.3 Macroeconomic Equilibrium 120

9.4 The Trade-Off Between Inflation and Unemployment 127

10 Fiscal Policy, Economic Growth, and Productivity 134

10.1 Expansionary and Contractionary Fiscal Policy 134

10.2 Difficulties of Fiscal Policy 138

10.3 Economic Growth and Productivity 142

11 Money, Banking, and Monetary Policy 149

11.1 Money and Financial Assets 149

11.2 Fractional Reserve Banking and Money Creation 155

11.3 Monetary Policy 158

12 International Trade 167

12.1 Comparative Advantage and Gains from Trade 167

12.2 Balance of Payments 171

12.3 Foreign Exchange Rates 173

12.4 Trade Barriers 176

Step 5 Build Your Test-Taking Confidence

AP Macroeconomics Practice Exam 1 183

AP Macroeconomics Practice Exam 2 203

Appendixes

Further Reading 223

Websites 225

Glossary 227

Important Formulas and Conditions 233