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.

a) 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 (20 marks)

b) Evaluate the view that governments should reduce budget deficits by cutting public expenditure (30 marks)