Macro 2017 FRQ #2- Money Market, Bond Prices, Open Market Operations

  • Published on Mar 4, 2018
  • In this video I go over the Macro 2017 FRQ #2. It covers the money market graph, bond prices, and open market operations. Try the question on your own the watch the video to see how you did. Thanks for watching.
    Unit 4 Summary Video
    To see all the released FRQs go to the link below. Also, I organized the FRQs by topic so it is easier to see how often they ask specific questions. Check it out. Lastly, please take a look at my Ultimate Review Packet. It has everything you need to rock your macro class.
    College Board Website for AP Macro
    FRQs organized by topic
    Ultimate Review Packet

Comments • 38

  • Peter Ronney
    Peter Ronney 6 months ago

    4/6. Missed b.i. and b.ii.

  • Sakshi Parikh
    Sakshi Parikh 6 months ago

    I got 5 / 6

  • Barry Zolomon
    Barry Zolomon 7 months ago

    ehhh 4/6

  • Mayank Lathar
    Mayank Lathar 8 months ago

    can you elaborate open market operations?

  • Mary Daniels
    Mary Daniels 10 months ago +5

    I had one week to learn the entirety of intro to macroeconomics. I had no idea how I was going to do it until I started watching your videos. I ended up getting a 100% on my test. You're AWESOME! If you have a patreon, I'd like to donate.

  • Dylan Black
    Dylan Black 10 months ago

    5/6 damn bond prices

  • Ariam S.
    Ariam S. 11 months ago

    What happens when the FED engages in open market operations by selling treasury bonds? This will decrease in money supply, but what happens to the price level?

    • Aarti Jarwani
      Aarti Jarwani 10 months ago +2

      That will also fall. This is because interest rates would rise, which inturn would disincetivise people from borrowing from banks. And as a result of a fall in the aggregate demand price level will fall. Hope this clears your doubt!

  • Isaac Maginah
    Isaac Maginah Year ago

    Hi Clifford, this is fantastic of you, got 3/6. you have helped me understand the concept of money supply and demand very well.

  • Ashley Durham
    Ashley Durham Year ago

    Where is the video for Question3?

  • Marcos Fuerte
    Marcos Fuerte Year ago


  • thespeedyyoshi
    thespeedyyoshi Year ago

    5/6. So close!

  • Илья Филинов

    Thank you for your videos!!! They were very useful on today's exam

  • raisin bran
    raisin bran Year ago

    5/6 for a really stupid mistake for some reason in (c) I thought q would decrease? IM ACTUALLY GOINH TO GET A 1 ON THE AP HAHA

  • Samyu D
    Samyu D Year ago

    AGH 4/6! I messed up the last one and didn't pay attention to how it said open market operations and listed a monetary policy action.And the first one I got half right only cause I didnt have the proper graph format

  • Zoya Q
    Zoya Q Year ago

    5/6; for b)ii) my reasoning was that an increase in price level would cause real income to decrease, but I think I just mixed up "income" with "wages" rip

  • Syinndieee Chineee

    thank you so much this was so helpful!!

  • Smart Lauren
    Smart Lauren Year ago

    5/6 why real income is directly related to GDP?

    • Smart Lauren
      Smart Lauren Year ago

      Quinn Thanks a lot, that really helps me 😢

    • Smart Lauren
      Smart Lauren Year ago

      Arjun Tammishetti Thank you so so much. Btw, I did ap macro today and I think I aced it!

    • Quinn
      Quinn Year ago +1

      The wealthier each individual is= more spending and a shift in aggregate demand- which on the as-ad model will increase the real gdp

    • A T
      A T Year ago +1

      i'm not really sure, but I'm assuming that since GDP is increasing, the GDP per capita or whatever will subsequently increase, and with higher production per worker, there may be higher wages. possibly

  • Kashing Ng
    Kashing Ng Year ago

    b. ii) Will real income go up?

  • iftitah
    iftitah Year ago +2

    You rock sir. Your videos helped me got A- in Econ 415. Keep on rocking sir!

    • iftitah
      iftitah Year ago +1

      I forgot the thank you. Thank you!

    NURUL FAIEZI Year ago

    Can you explain about expenditure switching and expenditure dampening.. and policies to correct inflation and deflation.. it is sooo hard to understand..😭😭BTW.. i almost done finishing my ultimate pocket review...please Pray for my AS LEVEL on may june..

  • KZ J.
    KZ J. Year ago

    Please please, keep on doing a great vid like this!!

  • PhantasmCloud
    PhantasmCloud Year ago +11


    • PhantasmCloud
      PhantasmCloud Year ago

      i might be just baiting for those superb videos of yours tho :p

  • That Guy
    That Guy Year ago

    Mr.Clifford I passed both macro and mirco with a 4 on both with your help! Mr.Barron you met at a convention teaches with your videos! AP students owe you thanks for your free content.

  • D01287410
    D01287410 Year ago

    Mr. Clifford Thanks to you and the Ultimate review packet I passed both my Macro and Micro classes in very quick time. I can't say enough about these videos and your teaching method. If anyone here reads this and doubts how helpful he is just read the comments on the older videos. The man knows what he is talking about and offers a great learning tool.

  • Jacob Clifford
    Jacob Clifford  Year ago +4

    How did you do? Post your score below