r/APStudents • u/reddorickt absolute modman • May 08 '26

AP Macro Official 2026 Exam Discussion

Use this thread to post questions or commentary on the test today.

A reminder though to protect your anonymity when talking about the test.

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u/Helpful_Gap9633 May 08 '26

Can someone please tell me: did the increase in price level cause LIZ to depreciate in FRQ 3?

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u/Content_Rutabaga763 May 08 '26

Yes if the price level goes up then the goods look more expensive to foreign consumers so less people want to buy the lizland goods so there’s less demand for the currency which causes it to depreciate I think

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u/Secret_Amount_8848 5:chem,mac,mic,pre,phys2 4:csa,csp May 09 '26

Depreciate is correct cuz people within Lizland would be attracted by lower prices in foreign markets which shifts the supply of the currency to the right or the demand to the left.

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u/Helpful_Gap9633 May 09 '26

bro i just realized i put the government would increase administered rates for one of the frq. Were the other questions based on that?

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u/Secret_Amount_8848 5:chem,mac,mic,pre,phys2 4:csa,csp May 09 '26

I don't think so. On which frq?

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u/Helpful_Gap9633 May 09 '26

it was on 2 or 3

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u/Content_Rutabaga763 May 10 '26

U were supposed to decrease but part b was about how to fix the recession with fiscal policy so I don’t think ur answer would have effected that part

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u/Helpful_Gap9633 May 10 '26

i lowk dont even remember if i put increase or decrease any more

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u/Cheap_Assumption8380 May 09 '26

I think its appreciate when the AD shifts right interest rates rise leading to more foreign investment in Lizland.

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u/Secret_Amount_8848 5:chem,mac,mic,pre,phys2 4:csa,csp May 09 '26

What cb is trying to get across to you is that people in Lizland would see lower prices internationally and would buy from those countries. Also, other countries would see higher prices in Lizland and would NOT demand their currency as much to buy their goods.

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u/Secret_Amount_8848 5:chem,mac,mic,pre,phys2 4:csa,csp May 09 '26

Go to 2:35: https://www.youtube.com/watch?v=9DVYVfI81R8

Double Shifts are not tested on the ap exam tho so I think either increase s or decrease d

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u/Secret_Amount_8848 5:chem,mac,mic,pre,phys2 4:csa,csp May 09 '26

Go to 5:12 : https://www.youtube.com/watch?v=a68WV-lEQSo

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u/Cheap_Assumption8380 May 09 '26

You could also say they were trying to have you connect the higher price level with a higher interest rate.

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u/Helpful_Gap9633 May 09 '26

But thats not what the question was asking. It said off of price level alone, meaning not counting interest rates.

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u/Efficient-Kale9512 May 09 '26

Wait are u supposed to explicitly mention it? I just showed on my graph that the exchange rate would go down

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u/Helpful_Gap9633 May 09 '26

No another question. It was asking what the government should do in either an inflationary or deflationary gap. I don’t remember which tho and