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4.5 Role of the state in the macroeconomy

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Question 9

In 2023, it was estimated that Japan’s national debt stood at approximately 263% of its GDP, while France’s national debt stood at approximately 111% of its GDP.

Evaluate the likely macroeconomic consequences for a developed economy of implementing policies aimed at reducing its national debt-to-GDP ratio. Refer to a developed economy of your choice in your answer.

Contractionary Fiscal Policy AD-AS Diagram

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4.5 Role of the state in the macroeconomy Questions

  1. A Level
  2. /Economics
  3. /4.5 Role of the state in the macroeconomy