AP Macroeconomics Pol 3 B a Define the Government Budget Surplus Deficit and National Debt B Explain the Issues Involved with the Burden of the Questions

Distinguish annual budget deficits from accumulated national debt, calculate the budget balance, and trace how fiscal choices change the debt.

Exam points

calculate a budget surplus or deficit from tax revenue, government purchases, and transfers
distinguish an annual government budget deficit from the accumulated national debt
show a deficit adding to debt, a balanced budget leaving debt unchanged, and a surplus reducing debt
choose tax, spending, or transfer changes that reduce a deficit or the national debt

[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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