Assume that Social Security tax rates remain constant but the number of employed people in the United

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Assume that Social Security tax rates remain constant but the number of employed people in the United States declines over time.

a) Explain the effect of such a scenario on the size of contributions for social insurance and the government deficit in the United States.

b) Assume now that employment remains constant but there is an increase in unemployment insurance benefits. How would your answer to part (a) change?

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Macroeconomics Policy And Practice

ISBN: 978-0133424317

2nd Edition

Authors: Frederic Mishkin

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Question Posted: Feb 20, 2024 04:00 AM

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Assume that Social Security tax rates remain constant but the number of employed people in the United

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a In the hypothetical scenario where the number of employed people in the United States shrinks desp...View the full answer

Macroeconomics Policy And Practice

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