Principles of Macroeconomics
3 free practice tests · 80 questions each · 1h 30min · No sign-up required
About This Exam
The CLEP Principles of Macroeconomics exam covers material typically taught in a one-semester introductory macroeconomics course. It tests your understanding of the economy as a whole — national output, unemployment, inflation, and the tools governments and central banks use to manage economic activity.
What's Covered
- Basic economic concepts — scarcity, opportunity cost, production possibilities curve, comparative advantage, and trade
- Measuring economic performance — GDP, real vs. nominal GDP, GDP deflator, CPI, unemployment rate, inflation rate
- National income and price determination — aggregate demand and aggregate supply, the multiplier effect, short-run and long-run equilibrium
- The financial sector — money supply, money demand, banking system, money multiplier, Federal Reserve operations
- Monetary policy — open market operations, discount rate, reserve requirements, federal funds rate, and their effects on output and price level
- Fiscal policy — government spending, taxation, automatic stabilizers, budget deficits, and the crowding-out effect
- International economics — balance of payments, exchange rates, trade deficits and surpluses, capital flows
For the official exam description, see the College Board CLEP Macroeconomics page.
Study Tips
- Be fluent with the AD-AS model. Most questions tie back to shifts in aggregate demand or aggregate supply and their effects on price level and output.
- Know the money multiplier formula (1/reserve ratio) and how the Fed's tools affect the money supply.
- Understand the difference between short-run and long-run aggregate supply. The exam frequently tests what happens when the economy self-corrects.
- Fiscal and monetary policy questions often ask about lags, crowding out, and unintended consequences — not just the intended effects.
- Don't skip the Phillips Curve. The relationship between inflation and unemployment is a commonly tested concept.
How to Register
Register at clep.collegeboard.org. The exam costs $97 and can be taken at a testing center or remotely. Check with your college for their CLEP credit policy and minimum score requirements before registering. Military service members, their spouses, and eligible veterans may be able to take the exam at no cost through DANTES funding.
About Our Practice Tests
All questions are original and written to match the difficulty, format, and topic coverage of the real exam based on official exam descriptions. We offer two modes: Practice Mode gives you instant feedback and explanations after each question, and Test Mode simulates the real exam with a timer and no feedback until you submit. Both modes are completely free with no account required.