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.

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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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POL-3.B—a. Define the government budget surplus (deficit) and national debt. b. Explain the issues involved with the burden of the… question 1