AP Macro Cram Sheet: Everything You Need to Remember for May 2026 Exam Day

It's May 2026. The exam is tomorrow (or maybe in 72 hours). You're staring at a semester's worth of notes and feeling that familiar panic rising. What if you forget the Phillips Curve? What if you mix up fiscal and monetary policy? What if you blank on the AD-AS model?

Take a deep breath. This isn't your typical study guide—this is your emergency life raft. I've distilled everything you absolutely must remember for the 2026 AP Macroeconomics exam into one concise, hyper-organized resource. Print it, bookmark it, and sleep with it under your pillow. This cram sheet will transform that panic into focused, last-minute mastery.

The Golden Rule of Cramming: Focus on What Actually Appears

The AP Macro exam follows patterns. After analyzing every exam from 2015-2024, I can tell you exactly what you're likely to see. This isn't guessing—it's data-driven prioritization.

The 5 Non-Negotiables: What You Must Remember

1. The AD-AS Model (Unit 3 - 27% of Exam)

Axes: Price Level (PL) ↔ Real GDP (RGDP)

Curves:

• AD: Downward sloping (C+I+G+X-M)
• SRAS: Upward sloping (sticky wages/prices)
• LRAS: VERTICAL at full employment

What Shifts AD? (Changes in C, I, G, X-M)

• C↑: Tax cut, consumer confidence, wealth ↑
• I↑: Lower interest rates, business optimism
• G↑: Government spending increase
• X-M↑: Foreign income ↑, dollar depreciates

What Shifts SRAS? (Production costs/expectations)

• SRAS→: Lower input costs, favorable supply shock
• SRAS←: Higher input costs, unfavorable shock

Memorize This: AD shifts = demand-side policies. AS shifts = supply-side factors.

2. Money Market vs. Loanable Funds

CRITICAL DISTINCTION: Get this wrong = automatic point loss.

Fed Tools (Money Market Shifts):

• Open Market Operations: Buy bonds → MS→, Sell bonds → MS←
• Discount Rate: Lower → MS→, Raise → MS←
• Reserve Requirements: Lower → MS→, Raise → MS←

3. The 5 Essential Formulas

GDP = C + I + G + (X-M)

• C: Consumption (consumer spending)
• I: Investment (business capital)
• G: Government spending (NOT transfer payments!)
• X-M: Net exports (exports - imports)

Unemployment Rate = (Unemployed ÷ Labor Force) × 100

• Labor Force = Employed + Unemployed
• NOT in labor force: retirees, students, discouraged workers

Inflation Rate = [(CPI_Year2 - CPI_Year1) ÷ CPI_Year1] × 100

• Base year CPI = 100
• CPI measures: Cost of fixed basket of goods

Money Multiplier = 1 ÷ Reserve Requirement

• Maximum money creation from initial deposit

Real Interest Rate ≈ Nominal Interest Rate - Inflation Rate

• Real: Adjusted for inflation
• Nominal: Stated rate

4. Phillips Curve: Short-Run vs. Long-Run

SHORT-RUN Phillips Curve (SRPC):

• Downward sloping (inflation-unemployment tradeoff)
• Shifts: Supply shocks, expected inflation changes

LONG-RUN Phillips Curve (LRPC):

• VERTICAL at natural rate of unemployment (NRU)
• Key Insight: No long-run tradeoff between inflation and unemployment

Stagflation: High inflation + high unemployment

• Graphically: SRPC shifts right/up

5. Foreign Exchange (Forex) Market

Axes: Exchange Rate (foreign currency/$) ↔ Quantity of Currency

Appreciation: Dollar buys more foreign currency

• Causes: Higher U.S. interest rates, strong U.S. economy

Depreciation: Dollar buys less foreign currency

• Causes: Lower U.S. interest rates, weak U.S. economy

Trade Effect: Dollar appreciates → exports↓, imports↑ → trade deficit worsens

The 24-Hour Cram Plan

Night Before (5-7 PM):

• Review all 5 core graphs: Draw each once from memory
• Practice calculations: 5 GDP, 5 unemployment, 5 inflation problems
• Use the AP Macro Calculator: Input your most recent practice scores to see your predicted range

Evening Before (7-9 PM):

• Create mnemonic devices: For things you keep forgetting
• Watch: ACDC Economics' Ultimate Review Packet Summary (last 30 minutes)
• Organize materials: Pencils, calculator (simple), watch, ID

Morning Of (Exam Day):

• 1 hour before: Protein breakfast
• 30 minutes before: Review this cram sheet's "Emergency Reminders"
• 10 minutes before: Breathe. Visualize success.

Emergency Reminders (Read This 10 Minutes Before Exam)

GRAPH AXES LABELS:

• AD-AS: PL ↔ RGDP
• Money Market: Nominal IR ↔ Q of Money
• Loanable Funds: Real IR ↔ Q of LF
• Phillips: Unemployment ↔ Inflation
• Forex: Exchange Rate ↔ Q of Currency

MOVEMENT vs. SHIFT:

• Price changes → movement along
• Interest rate changes → movement along Money Demand
• Everything else → shift

POLICY SEPARATION:

• Fiscal = Congress (Taxes & Spending)
• Monetary = Fed (Interest Rates & Money Supply)
• NEVER CROSS THESE

TIME FRAMES:

• Short-run: Can have unemployment ≠ natural rate
• Long-run: Economy returns to full employment (LRAS vertical, LRPC vertical)

GUESSING STRATEGY:

• No penalty for wrong answers → guess on EVERY question
• Eliminate obviously wrong choices first
• On calculation questions, estimate

FRQ Emergency Protocol

10-Minute Reading Period (USE IT!):

1. Minute 1-2: Skim all 3 questions
2. Minute 3-8: Plan each question (jot graphs, key terms)
3. Minute 9-10: Decide order (easiest first)

50-Minute Writing:

• Long question (10 pts): 22-25 minutes
• Short questions (5 pts each): 12-15 minutes each
• Last 5 minutes: Check labels, answers to all parts

Graph Requirements (Points Checklist):

• Axes labeled with full names
• Curves labeled (AD, SRAS, MS, etc.)
• Initial equilibrium marked
• Shift shown with dashed lines
• New equilibrium marked
• Arrows showing direction
• PL₁, PL₂, RGDP₁, RGDP₂ labels

Explanation Formula:
"Because [policy/change], the [curve] shifts [direction], causing [variable] to [increase/decrease], which leads to [outcome]."

MCQ Lightning Round Strategy

70 minutes ÷ 60 questions = 1 min 10 sec each

Three Pass System:

1. First Pass (0-45 min): Answer all easy questions immediately
2. Second Pass (45-65 min): Tackle circled harder questions
3. Third Pass (65-70 min): Check for silly mistakes, guess remaining

When Stuck:

1. Eliminate 2 obviously wrong answers
2. Look for key terms in question/answer alignment
3. Ask: "What economic concept is being tested?"
4. Guess and move on

Common MCQ Traps:

• Confusing nominal vs. real
• Mixing up movement along vs. shift
• Forgetting long-run adjustments
• Confusing fiscal vs. monetary tools

The Last-Minute Checklist

Knowledge Checklist:

• Can draw AD-AS from memory in 90 seconds
• Know the difference: Money Market vs. Loanable Funds
• Can calculate GDP, unemployment, inflation
• Remember LRAS and LRPC are VERTICAL
• Know fiscal vs. monetary policy tools
• Can explain crowding out
• Understand forex appreciation/depreciation effects

Exam Day Checklist:

• Admission ticket & photo ID
• 4+ #2 pencils with erasers
• Simple calculator (non-graphing)
• Analog watch (not smart watch)
• Water & snack for break
• Light sweater/jacket
• This cram sheet (for last-minute review)

Mindset Checklist:

• Remember: You've prepared for this
• Strategy: Easy questions first
• Timing: Watch your pace
• Guessing: No penalty = guess everything
• Partial credit: Write something for every FRQ part

11th Hour Quick References

Fiscal Policy Effects:

Expansionary (fight recession):

• G↑ or T↓ → AD→
• Government deficit↑

Contractionary (fight inflation):

• G↓ or T↑ → AD←
• Government deficit↓

Monetary Policy Effects:

Expansionary (fight recession):

• MS→ → Interest rates↓ → I↑ → AD→
• Fed buys bonds, lowers rates

Contractionary (fight inflation):

• MS← → Interest rates↑ → I↓ → AD←
• Fed sells bonds, raises rates

Crowding Out Sequence:

1. Government borrows (fiscal expansion)
2. Demand for loanable funds↑
3. Real interest rates↑
4. Private investment↓
5. Partially offsets fiscal stimulus

Forex Determinants:

Dollar appreciates when:

• U.S. interest rates↑ relative to other countries
• U.S. economic growth stronger
• Foreign demand for U.S. assets↑

Dollar depreciates when:

• U.S. interest rates↓
• U.S. economic growth weaker
• Inflation higher in U.S.

Stagflation Response:

• Problem: SRAS← (supply shock)
• Wrong response: AD→ (causes more inflation)
• Right response: Wait for SRAS self-correction, or supply-side policies

When You Blank During the Exam

For Graphs:

1. Draw and label axes (this alone gets points)
2. Draw the basic curves
3. Think: "What would my teacher draw?"
4. Show any shift you can justify

For Calculations:

1. Write the formula (partial credit!)
2. Plug in what you know
3. Estimate if you must

For Explanations:

1. Use economic terminology
2. Connect cause to effect
3. Write in complete sentences

Remember: Something > Nothing. A partial graph earns more than a blank page.

Post-Exam: What's Next?

Immediately After:

• Don't discuss questions with others (it causes anxiety)
• Celebrate being done!
• Use the AP Macro Calculator with your best estimate of your performance

July 2026 (Scores Released):

• Check scores on College Board website
• Send scores to colleges (4 free sends)
• Celebrate your accomplishment!

If You Need to Retake:

• Most colleges accept 3+ for credit
• Ivy Leagues often want 4 or 5
• Consider whether retaking is worth it

Final Pep Talk

You've spent months (or at least weeks) preparing for this moment. The exam is designed to be passed by students who understand the core concepts—and you do. The cram sheet has given you the essential framework.

Remember:

1. Start with what you know - build confidence
2. Manage your time - don't get stuck
3. Guess strategically - no penalty means always guess
4. Label everything - easy graph points
5. Breathe - anxiety is normal, don't let it win

You know more than you think you do. Those graphs you've drawn a hundred times? They're in your muscle memory. Those formulas? They'll come when you need them.

One last pro tip: During the exam, if you feel panic rising, take 10 seconds. Close your eyes. Breathe. Remember that this is just one test, and you've prepared for it. Then open your eyes and tackle the next question.

You've got this. Now go show the College Board what you know.