2016, Question 1 · 10 points
Phillips curves, Fed bond buying and the yen
Starting from unemployment above its natural rate, draw both Phillips curves, predict how the short-run curve adjusts with no policy, then trace an expansionary open market purchase through interest rates and real GDP to the demand for yen, finishing with a graph of the yen market.
This exam had three free-response questions in 60 minutes (a 10 minute reading period and 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 2016 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 August 5, 2022.
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.