AP Macroeconomics · Past multiple choice · Question 8 · Four-function calculator
A rate cut while output sits below potential
Output is below potential and the central bank lowers its administered rates. Predict the short-run effect on cyclical unemployment and on real income.
Lessons this question tests
1 Read the question
The question is College Board's: sample question 8 in AP Macroeconomics Course and Exam Description, Effective Fall 2026. It starts on page 143 of the PDF. A four-function calculator is allowed, as on the exam.
Open Question 8 (PDF, page 143)
2 Pick your answer
Question and answer key: College Board. The title and summary are ours.