What this practice covers
These questions are drawn from past AP Economics papers and filtered to national income and price determination. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on national income and price determination, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Explaining AD's slope with substitution between goods.
- Shifting AD by the initial injection rather than the multiplied amount.
- Using the spending multiplier for a tax change.
- Forgetting the tax multiplier is negative and smaller in magnitude.
- Reading the multiplied AD shift as the increase in real GDP, ignoring the slope of SRAS.
- Drawing LRAS as upward-sloping, in AP it is vertical at Yf.
- Shifting LRAS for a temporary supply shock, or for a change in AD.
- Counting transfer payments in G.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: National Income and Price Determination revision notes.