AP MacroeconomicsFiscal Policy
National Debt
The national debt is the total accumulated amount the government owes from past deficits not offset by surpluses.
It is a stock that grows whenever the government runs a deficit, unlike the deficit, which is an annual flow. Large debt can raise interest costs and crowd out private investment. It is often measured as a percentage of GDP.
Formula / Example
National debt = sum of past deficits − past surpluses.
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