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CAIE A-Level Economics 5.2.3 National Debt

Practise defining national debt as accumulated government borrowing, interpreting debt-to-GDP evidence and analysing interest burdens, crowding out and future fiscal constraints.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • distinguish accumulated national debt from the annual budget deficit and debt-interest flow
  • interpret debt relative to GDP when judging whether government borrowing is substantial
  • explain crowding out or a larger future tax and interest burden after debt increases

5.2.3—National debt question 1

[Maximum number: 1]

What is the equivalent of a country's national debt?

A

the accumulated borrowing of the government

B

the difference between government spending and taxation

C

the interest paid by the government on all the money it owes

D

the total money owed by all households in the country

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