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AP Macroeconomics 5.4: Government Deficits and National Debt

Define budget deficits and national debt, explain how deficits add to debt, and evaluate the burden of interest payments and policy choices.

Syllabus
Effective Fall 2025
Course
AP Macroeconomics

Covered syllabus points

POL-3.B—a. Define the government budget surplus (deficit) and national debt. b. Explain the issues involved with the burden of the…

5.4 Government Deficits and the National Debt question 1

[Maximum number: 1]

The economy of Country Zeta is in long-run equilibrium; however, the government is concerned about the size of the national debt.

Identify one specific fiscal policy action the government could take to reduce the national debt.

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