2012, Question 1 · 12 points
Rankinland's recession and expansionary monetary policy
Draw a PPC with a point showing recession, name the open market operation for expansionary policy, show it in the money market, trace the real interest rate and real GDP effects, then explain what the GDP change does to the current account deficit and the currency's value.
This exam had three free-response questions in a 10 minute planning period plus 50 minutes of writing, with a suggestion 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 2012 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 September 10, 2025.
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) What the exam readers saw (Student Performance Q&A)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.