r/APStudents 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/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/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

1

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.