AP
®
MACROECONOMICS
2012 SCORING COMMENTARY
Question 1
Overview
Part (a) tested students’ ability to draw a production possibilities frontier diagram and to indicate a
recession on
the diagram. Part (b) asked students to identify the open-market operation that a central bank
would use to address a recession; to show the effect of expansionary monetary policy on the nominal
interest rate, using a correctly labeled money market graph; and to explain the effect of the expansionary
monetary policy on the real interest rate and real gross domestic product in the short run. Part (c) tested
students’ ability to explain the effect of an increase in a country’s real GDP on that country’s current
account deficit and the value of the country’s currency.
Sample: 1A
Score: 12
The student answers all parts of the question correctly and so earned all 12 points.
Sample: 1B
Score: 6
The student earned 1 point in part (a) for a correctly labeled production possibility curve. The student
received 1 p
oint in part (b)(i) for stating that the central bank should buy bonds. The student earned 2 points
in part (b)(ii): 1 point for a correctly labeled money market graph and 1 point for showing the short-run effect
of an expansionary monetary policy on the nominal rate of interest. The student earned 1 point in part (b)(iii)
for stating that the real interest rate declines. The student earned 1 point in part (b)(iv) for explaining that an
increase in aggregate demand leads to an increase in the real GDP.
Sample: 1C
Score: 2
In part (a) the student earned 1 point for a correctly labeled production possibility curve and 1 point for
showing the current outp
ut combination and correctly labeling it point A. The student lost all 4 points in
part (c), because the answers are inconsistent with the answers to part (b)(iv) on real GDP.
© 2012 The College Board.
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