34 ❯ Step 3. Develop Strategies for Success
some students who always seem to ace the multiple-choice questions and some students who
would rather set themselves on fire than sit for another round of “bubble trouble.” I hope
that, with a little background and a few tips, you might improve your scores in this impor-
tant component of the AP Macroeconomics exam.
First, the background. Every multiple-choice question has three important parts:- The stem is the basis for the actual question. Sometimes this comes in the form of a
fill-in-the-blank statement, rather than a question.
Example
The value of the U.S. dollar would decrease ifExample
If the economy is operating below full employment, which of the following fiscal
policies is most likely to decrease the unemployment rate?- The correct answer option. Obviously, this is the one selection that best completes the
statement, or responds to the question in the stem. Because you have purchased this
book, you will select this option many, many times. - Distractor options. Just as it sounds, these are the incorrect answers intended to dis-
tract the person who decided not to purchase this book. You can locate this person in
the exam room by searching for the individual who is repeatedly smacking his or her
forehead on the desktop.
Students who do well on multiple-choice exams are so well prepared that they can easily
find the correct answer, but other students do well because they are savvy enough to identify
and avoid the distractors. Much research has been done on how to best study for, and com-
plete, multiple-choice questions. You can find some of this research by using your favorite
Internet search engine, but here are a few tips that many economics students find useful. - Let’s be careful out there. You must carefully read the question. This sounds pretty obvi-
ous, but you would be surprised how tricky those test developers can be. For example,
rushing past and failing to see the use of a negative can throw a student.
Example
Which of the following is not true of expansionary monetary policy?
A. A lower nominal interest rate increases aggregate demand.
B. Banks see a decrease in excess reserves.
C. Expansionary monetary policy is used to combat recessionary gaps.
D. Lower nominal interest rates should increase real domestic output.
E. Expansionary monetary policy is conducted by the Federal Reserve.
A student who is going too fast and ignores the negative not might select option (A)
because it is true of expansionary monetary policy, and it was the first option that
the student saw.- See the answer, be the answer. Many people find success when they carefully read the
question and, before looking at the alternatives, visualize the correct answer. This allows
the person to narrow the search for the correct option and identify the distractors. Of
course, this visualization tip is most useful for students who have used this book to
thoroughly review the economic content.