AP Macroeconomics · Past multiple choice · Question 6, older AP Economics course description · Four-function calculator

Purchases and taxes raised by the same amount

The government raises its purchases and its taxes by equal sums. Decide what follows for aggregate demand, interest rates or the money supply.

Lessons this question tests

1 Read the question

The question is College Board's: sample question 6 in AP Economics Course Description. It starts on page 33 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on June 3, 2016. A four-function calculator is allowed, as on the exam.

Open Question 6 (PDF, page 33)

2 Pick your answer

Question and answer key: College Board, from the Internet Archive. The title and summary are ours.