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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2025 · Q261 Mark

Japan's population has an increasing proportion of elderly people. What is the likely impact of this on the Japanese economy?

Aincreased government budget deficit
Bincreased rate of economic growth
Cincreased rate of emigration
Dincreased use of labour-intensive methods of production

✓ Correct answer

A: increased government budget deficit

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2025 Paper 1 Variant 2, question 26.

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