All Things Economics

<p>I've been noticing that there has been a little confusion over various concepts in both Microeconomics and Macroeconomics. Therefore, to prepare for the exam, I want to try to help anyone that is having problems. Questions about anything, actual AP-style questions, etc. can be posted here. Anyone at all can contribute if they would like as well.</p>

<p>Hi, I’ll be a sophomore next year, and AP Econ is one of my 3 AP classes. I’m kind of nervous, so I you wouldn’t mind, could you answer these questions:

  1. How difficult are the concepts to master in the class? For some reason in my school, people say it’s extremely hard even though the teacher we get is awesome.<br>
  2. Is there anything you recommend doing to prep for the class; there are no prerequisites offered in my school for the AP course.
  3. How hard is the math?</p>

<p>Hey there!</p>

<ol>
<li>Not hard at all if you give yourself enough time to thoroughly understand it. For me, learning economics was not that bad since I gave myself enough time to learn it all. If you feel like you don’t completely get something, go back over it and find out exactly why it works the way it does. I probably finished Micro in about 30 hours and Macro in about 8 hours. Micro took me much longer because it was all extremely new to me. In Macro, a lot of the concepts from Micro overlap.</li>
<li>Get 5 Steps to a 5 in the beginning of the year. I would recommend using the calendar in the beginning to make sure you keep up with the book. However, since you are in a class, you can wait until April to begin reviewing, which should work equally well.</li>
<li>There’s a reason why no calculator is allowed. The math is extremely simple.</li>
</ol>

<p>For math, is it pretty much just about applying formulas and analyzation?<br>
Also, is it true that many students happen to over-think problems which leads to confusion?
Finally, did you find the AP test to be pretty straightforward or did they throw some serious curves?</p>

<p>Thanks!!</p>

<p>There are quite a bit of formulas that you are supposed to know. I think most of the problems I’ve encountered are pretty straightforward. If you have the concepts down, the formulas memorized (and know how they relate to one another), and know how to draw the graphs (and also realize how things change if something shifts), you are well on your way to an easy 5!</p>

<p>I am actually taking both of the exams this year, but I have gone through a couple practice tests and I am in the 5 range.</p>

<p>As far as the formulas relating to each other, would you say there is anything one must be leery for?<br>
Sorry for all the questions!</p>

<p>Not really. The formulas usually tie into the concepts as well, so if you can integrate both, you probably will not have to know as many formulas. This is why I also like the 5 Steps to a 5 book. In the back, it has all of the formulas listed. If you are studying from the beginning of the year (or even a semester), you really shouldn’t have much to worry about.</p>

<p>This book, 5 steps to a 5, does it help prepare you for both the micro exam as well as the macro exam, or is there just one AP exam for Econ that encompasses both micro and macro?</p>

<p>Thanks!!</p>

<p>Both. There are 2 chapters on general economic knowledge you need to know for both exams, and then certain chapters just for micro and certain chapters just for macro. It contains 6 tests total: a diagnostic test for micro, a diagnostic test for macro, 2 practice tests for micro, and 2 practice tests for macro.</p>

<p>AP Econ is one class in my school; one semester we do micro and the other macro (I forget which order). When I actually go to take the exam, will I have to sit in for 2 exams? From my understanding, micro and macro count as 2 different AP exams. Is that correct?</p>

<p>Yes. You get one score for micro and another score for macro. They are both on the same day.</p>

<p>I got really annoyed by 5 steps to a 5 and decided to use Barrons… will that be a problem since most of you said to use 5 steps to a 5??</p>

<p>how big of a concept is appreciation/depreciation of currency? macro.</p>

<p>@james: I have no idea. I haven’t heard anything about Barron’s, but I know that 5 Steps to a 5 works for me at least. If you are having success with Barron’s, then use it!</p>

<p>@college: According to the course description, I would guess around 3-5%? It falls under the section of Open Economy: International Trade and Finance, which is 10-15%.</p>

<p>I’ve been studying and this topic has really bugged me. I’ve been getting many questions on it wrong…</p>

<p>What is the difference between total change in the money supply as a result of Fed action (original deposit x money multiplier) vs. a change in demand deposits through the money system (accounting for the RRR)? Some AP questions have it all worded differently and it’s confusing.</p>

<p>Are you talking about the differences between the spending multiplier and the tax multiplier? I’m sorry, but I’m not sure I get what you are talking about.</p>

<p>LostInCommunity:</p>

<p>the first happens through people, as result of consumption. 20 dollars go into the money supply. If the MPC is .9, 200 dollars get spent.</p>

<p>The second happens through banks. they get a 20 dollar deposit, and if the reserve requirement is .1, 200 dollars get loaned.</p>

<p>TenebrousNight, do you think it’s possible to learn most of Macro/Micro in four days? To get a 5 I mean. I’m rather terrible at math, but if I do nothing for all 4 days except econ… maybe?</p>