Take the Diagnostic Exam ❮ 29Scoring and Interpretation
Now that you have completed the diagnostic exam and checked your answers, it is time to
assess your knowledge and preparation. If you saw some questions that caused you to roll
your eyes and mutter “What the... ?” then you can focus your study on those areas. If you
breezed through some questions, great!
Calculate your raw score with the formula that follows. If you left any questions blank,
there is no penalty. Take this raw score on the diagnostic exam and compare it to the table
that follows to estimate where you might score at this point.
Section I Raw Score = NrightMACROECONOMICS
Raw Diagnostic Score AP Grade
22–30 5
18–21 4
15–17 3
9–14 2
0–8 1Remember, on the real exam, Section I will account for two-thirds of your composite
score, with one-third coming from the free-response Section II. Given this important dif-
ference between your diagnostic exam and the real thing, the table above is a very prelimi-
nary way to convert your diagnostic raw score to an AP grade. No matter how you scored
on the diagnostic exam, it is time to begin to review for your AP Macroeconomics Exam.- C—The money multiplier is 10 because the reserve
ratio is 0.10. If money demand is horizontal, a $1
million increase in excess reserves shifts the money
supply curve rightward by $10 million but will not
lower the nominal interest rate. If the interest rate
does not fall, aggregate demand does not rise.
Questions from Chapter 12
- A—Nations are net exporters of a good when the
world price is greater than the domestic price.
A higher world price creates a surplus in the
domestic market and the surplus is exported.
This situation improves the U.S. balance of trade
and would not foster any U.S. protective trade
policy. In currency markets, the dollar likely
appreciates, as foreign consumers need dollars to
buy U.S. copper.
29. A—When relative incomes are falling in Japan,
fewer U.S. goods are demanded, so U.S. exports
fall. The decrease in the demand for U.S. dollars
causes the dollar to depreciate.
30. E—A tariff causes imports to fall, so net exports
rise for the U.S. With fewer consumers demand-
ing foreign-built cars, the demand for foreign
currency falls, decreasing the value of foreign cur-
rency, appreciating the value of the U.S. dollar.