What do economist mean when they say Social Security and Medicare are “pay as you go “plans? What are the Social Security and Medicare trust funds, and how long will they have money left in them? What is the key long-run problem of both Social Security and Medicare?

What do economist mean when they say Social Security and Medicare are “pay as you go “plans? What are the Social Security and Medicare trust funds, and how long will they have money left in them? What is the key long-run problem of both Social Security and Medicare?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: Which of the following is included in G? Select one: a. medicare b. social security payments c.…

A: GDP stands for the gross domestic product of a country. It is the value of all the final goods and…

Q: Do treasury securities finance a federal budget deficit? If so would the government purchase…

A: Yes, federal securities finance a federal budget deficit.

Q: What are the major sources or categories of revenue and major expenditures? How have revenues and…

A: A way of measuring the economic wellbeing of a nation, the GDP is the amalgamation of all the values…

Q: What do economists mean when they say government purchases are “exhaustive” expenditures whereas…

A: Public expenditure refers to the expenditure that is incurred by the government in providing goods…

Q: Why is social securities one of the biggest threats to the long run federal budget ?

A: Social securities are set of state programmes designed to safeguard employees and their families…

Q: What is the index of leading economic indicators, and how does it relate to discretionary fiscal…

A: A business cycle represents the periodic movement of the aggregate output of an economy in the…

Q: Explain the difference between discretionary and automatic spending by the government.

A: Both discretionary and automatic spending by the government are the tools of fiscal policy a…

Q: how to reduce the debt gdp ratio for macro

A: The debt-to-GDP proportion is the measurement contrasting a country's public debt with its (GDP).

Q: Why did president Trump oppose the TPP

A: TPP (Trans-Pacific Partnership) is a trade deal, a 12 countries commitment which aimed to create a…

Q: how discretionary fiscal policy fights recession and inflation

A: The fiscal policy of the government used as per the need of the government is discretionary fiscal…

Q: True or false. Most of the federal expenditures are not at the year-to-year discretion of Congress…

A: When talking about government budget, government requires to maintain budget related to…

Q: how to derive the income multiplier, comsumption multiplier and government multiplier, given Y=C +…

A: Multiplier effect A circumstance in which a small change in the input, such as government spending,…

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $180…

A: (a) Country is presently delivering $550 of real GDP. Now, the tax revenue is $110 and government…

Q: What do economists mean when they refer to Social Security as a pay-as-you-go plan? What is the…

A: - Social security is the base of economic security for many US retirees, disabled, and their…

Q: What is the difference between the marginal excess tax burden and the marginal cost of public funds…

A: Marginal excess tax burden is the addition of excess tax on consumers.

Q: according to wray, why must the government spend before it collects taxes? Do taxes ans bonds…

A: Bonds is the instrument that is used for lending purpose. It is inversely related to the price of…

Q: can Social Security and Medicare be fiscal time bombs

A: Social security is an initiative by Federal government which provides sources of income to people…

Q: Suppose there are two groups of consumers in the population, constrained and unconstrained, with…

A: When money taken from one group is given to or invested in by the government, such as through…

Q: True or False (and explain your answer) : The George W. Bush tax cuts (circa 2001) were touted by…

A: We are going to use median and average properties to answer this question.

Q: Instead of paying transfer (TR) if the government were to increase government spending (G), what…

A: The transfer payment is described as government payments to the individual by social programs like…

Q: In 2008, the government increased its debt by $50 billion and it received $300 billion in revenue.…

A: Since the total revenue of the government in the year is $300 billion In the year the government…

Q: The payments that go into the trust fund for Social Security and Medicare come a) equally from…

A: The trust fund is a private legal arrangement where assets are held for benefiting the trust…

Q: explain how government grants may crowd out fundraising by charities and private donations in the…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: in 50 words. what is meant by the ‘cap’ on Social Security?

A: Social security is defined as the protection that a society provides its citizens against certain…

Q: What are the two things Congress could manipulate to enact Discretionary Fiscal Policy?

A: Congress is the legislative branch of Federal Government. Fiscal Policy refers to change in…

Q: How will cuts in state budget spending affect federal expansionary policy?

A: Expansionary fiscal policy refers to an increase in the federal government purchases and or a…

Q: 1. Use the graph below to answer the following questions: BB, (G. BB, (G,. t,) F D. 5300 5000 Real…

A: Given information BB0 and BB1 represented budget line Budget Line=T-G +ve on vertical axis…

Q: What is crowding-out effect? Explain

A: The aggregate demand show the negative relationship between the price level and real GDP. It is…

Q: The following equations describe an economy. (Think of C , I , G , etc., as being measured in…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: What do economists mean when they say Social Security and Medicare are “pay-as-you-go” plans? What…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts for you…

Q: Why might economists be quite concerned if the annual interest payments on the debt sharply…

A: The standard measure of value-added produced during a certain time by manufacturing goods and…

Q: What would happen to the stated sizes of Federal budget deficits or surpluses if the current annual…

A: Social Security Trust basically has two funds, the survivor's insurance, and the old-age insurance.…

Q: By how much would taxes have to rise as a share of GDP in order to “solve” the Social Security…

A: Social Security has a basic math problem which is long-known which indicates that more money would…

Q: How is the Social Security system currently influencing the size of the budget deficit? If it is not…

A: The budget deficit creates the problem in the economy. When there is budget deficit, it will leads…

Q: N R FIRMS 80m 100m FINANCIAL SECTOR 50m 120m GOVER 220m

A: *Answer: 2.1.4) Injections are such variables that add to the circular flow of income. Government…

Q: What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How…

A: Answer:- Suррly-side eсоnоmiсs is а mасrоeсоnоmiс theоry whiсh аrgues thаt eсоnоmiс grоwth…

Q: In January, the interest rate is 5 percent and firms borrow $ 50 billion per month for investment…

A: Crowding out effect is a scenario in which a increase in the interest rate leads to a fall in the…

Q: Why does the government borrow money

A: Government is that entity that runs the entire nation. Government is responsible for thr maintenance…

Q: What does Benjamin Franklin mean in the following quote about taxation? What advice is implied and…

A: Planning one's finances in terms of either taxes or even investments can be fruitful.

Q: Refer to the following table for Waxwania: Government Expenditures, G Tax Revenues, T Real GDP $160…

A: The level of a budget deficit is the level that refers to the excess spending of the government as…

Q: Instead of paying transfer (TR) if the government were to increase government spending (G), what…

A: During extreme economic recessions transfers payments are often implemented or extended. During the…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Why are expenditures such as crime prevention and education typically done at the state and local level rather than at the federal level?
What do economists mean when they say Social Security and Medicare are “pay-as-you-go” plans? What are the Social Security and Medicare trust funds, and how long will they have money left in them? What is the key long-run problem of both Social Security and Medicare? To fix the problem, do you favor increasing taxes or do you prefer reducing benefits? Why?
What do economists mean when they refer to Social Security as a pay-as-you-go plan? What is the Social Security trust fund? What is the nature of the long-run fiscal imbalance in the Social Security retirement system? What are the broad options for addressing this problem?
in 50 words. what is meant by the ‘cap’ on Social Security?
By how much would taxes have to rise as a share of GDP in order to “solve” the Social Security problem?
Why is social securities one of the biggest threats to the long run federal budget ?
Why did president Trump oppose the TPP? Can credible references be cited with answer?
Do treasury securities finance a federal budget deficit? If so would the government purchase treasury securities to finance the budget deficit or would they sell them?
Which of the following is included in G? Select one: a. medicare b. social security payments c. government purchases d. interest payments on the government debt
Suppose that in 2012 the government collected $320 billion in revenue and spent $380 billion, while in 2013 the government revenue increased to $350 billion and its spending fell to $330 billion. If the government had a debt of $600 billion at the beginning of 2012, how much debt would it have by the end of 2013? Select one: a. $620 billion b. $640 billion c. $650 billion d. $660 billion e. $680 billion
6.9 An editorial in the Wall Street Journal states: “We don’t put much stock in future budget forecasts because they depend on so many variables.” What variables would a forecast of future federal budget deficits depend on? Why do these variables make future budget deficits difficult to predict?
What is the index of leading economic indicators, and how does it relate to discretionary fiscal policy?