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# Evaluate the likely impact of measures which a government could take to reduce the economy’s national debt
- URL: https://www.a-level-economics-tutor.com/evaluate-the-likely-impact-of-measures-which-a-government-could-take-to-reduce-the-economys-national-debt/
- Published: 2026-05-20T11:48:53.000Z
- Updated: 2026-05-20T11:50:34.000Z
- Author: Jaisul Naik
- Tags: Edexcel 25 Mark Question

### Edexcel A-Level Economics 25 Mark Question

In 2012, it was estimated that Japan’s national debt was equal to 214.3% of its GDP, and Greece’s national debt was equal to 161.3% of its GDP. **Evaluate the likely impact of measures which a government could take to reduce the economy’s national debt.** Refer to a developed economy of your choice in your answer. (Specimen)

**Plan**

- **Paragraph 1**
  - **Argument: one impact of measures such as higher income taxes is a decrease in economic growth**
  - **Diagram: decrease in AD, negative multiplier effect**
  - **Evaluation: trade-offs depend on the tax band and the size of the multiplier**
- **Paragraph 2**
  - **Argument: another impact of measures such as cutting spending on infrastructure projects is a decrease in potential growth**
  - **Diagram: decrease in LRAS**
  - **Evaluation: depends on the state of the economy**

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