Japan’s government debt-to-GDP ratio is currently projected to remain exceptionally high at approximately 260% of GDP, while its annual budget deficit is estimated at 5.2% of GDP.
Evaluate the macroeconomic consequences for an economy of operating with highly elevated levels of public debt and a persistent fiscal deficit.
44 exam-style questions on Edexcel A A Level Economics 4.5.3 Public sector finances. Each one has a worked solution and a mark scheme showing where the marks go.