2007, Question 1 · 12 points

Falling stock prices and the dollar

Graph the money market after investors move into cash, show how a lower US price level changes the market for dollars, then follow the exchange rate change to net exports, AD, output, prices and unemployment.

This exam had three free-response questions with a 10 minute planning period and 50 minutes of writing, and students were told to spend about half the time on Question 1 and split the rest 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 2007 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.

Open Question 1 (PDF, page 2)

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.