AP®︎ Macroeconomics: Topic 3.2 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 3.2 of AP Macroeconomics – Multipliers.
Questions List
Topic 3.2
Question 1 Easy
This question tests the following: MOD-2.B.1
What does the multiplier effect refer to in economics?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 3.2: Multipliers
Learning Objective: MOD-2.B
a. Define the expenditure multiplier, the tax multiplier, the marginal propensity to consume, and the marginal propensity to save. b. Explain how changes in spending and taxes lead to changes in real GDP. c. Calculate how changes in spending and taxes lead to changes in real GDP.
Essential Knowledge: MOD-2.B.1
A $1 change to autonomous expenditures leads to further changes in total expenditures and total output.
Essential Knowledge: MOD-2.B.2
The expenditure multiplier quantifies the size of the change in aggregate demand as a result of a change in any of the components of aggregate demand.
Essential Knowledge: MOD-2.B.3
The tax multiplier quantifies the size of the change in aggregate demand as a result of a change in taxes.
Essential Knowledge: MOD-2.B.4
The expenditure multiplier and tax multiplier depend on the marginal propensity to consume.
Essential Knowledge: MOD-2.B.5
The marginal propensity to consume is the change in consumer spending divided by the change in disposable income. The sum of the marginal propensity to consume and marginal propensity to save is equal to one.
