2006, Form B, Question 1 · 11 points
Recession, self-correction, and a saving incentive
Graph an economy below full employment with long-run aggregate supply, then explain how short-run aggregate supply and employment adjust with no policy. Show a saving tax incentive in the loanable funds market and explain its long-run effect on aggregate supply.
This exam had three free-response questions to answer in 50 minutes of writing time after a 10-minute planning period, with about half the time suggested for Question 1 and the rest split evenly between Questions 2 and 3. The current exam has 3 free-response questions in 60 minutes. The skills these questions practice still count.
1 Read the question
The question is College Board's, from the 2006, Form B exam. It starts on page 2 of the PDF. College Board no longer posts this exam, so it opens from the copy of College Board's PDF that the Internet Archive saved on June 23, 2024.
2 Write your answer
Answer each part the way you would on the exam, in full sentences, with your work shown. Your writing saves as you type.
3 Score it
Score your answer against College Board's scoring guidelines, one point at a time. Give yourself a point only when your answer says what the guideline asks for.
Scoring guidelines (PDF, page 2)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.