The following are just a fow of the challanges facing policymakers. The debt-to-GDP ratio is rising. Social security payments are projected to incrense from 4.0% of GDP in 2018 to 6.0% in 2020, reflecting the aging of America the rapid increasein the proportion of people older than age 65 that will take place as the Baby Boom generation reaches retirement age. Medicare (the program that provides health care to retirees) and Medicaid (the program that provides health care to poorpeople) are projoctod to increase from 5.4% of GDP in 2018 to 7.2% in 2029. This large increase roflects tho incroasing cost of health care in the case of Medicaid and the increasing number of rutiroos in the case of Medicare.Given the above information, which of the following would be a prudent policy action?OA. Increase taxes and increase the debt-to-GDP ratio.O B. Decrease taxes and increase the debt-to-GDP ratio.OC. Increase taxes and decrease the debt-lo-GDP ratio.OD. Decrease taxes and decrease the debt-to-GDP ratio.

Answered: Image /qna-images/answer/80a329d5-a0af-45c6-9c6d-135b2cee5e13.jpg

The following are just a fow of the challanges facing policymakers. The debt-to-GDP ratio is rising. Social security payments are projected to increase from 4.00% of GDP in 2018 to 6.0% in 2020, reflecting the aging of America the rapid increase In the proportion of people older than age 65 that will take place as the Baby Boom generation reaches retirement age. Medicare (the program that provides health care to retirees) and Medicaid (the program that provides health care to poor people) ure projected to increuse from 5.4% of GDP in 2010 to 7.2% in 2020. This large incrouse refiocts the increusing cout of health care in the case of Medicaid and the increasing number of retireus in the cuse of Medicare. Given the above information, which of the following would be a prudent policy action? O A. Increase taxes and increase the debt-to-GDP ratio. OB. Decrense taxes and increase the debt-to-GDP ratio. OC. Increase taxes and decrease the debt-lo-GDP ratio. OD. Decrense taxen and decrease the debt-to-GDP ratio.

The following are just a fow of the challanges facing policymakers. The debt-to-GDP ratio is rising. Social security payments are projected to increase from 4.00% of GDP in 2018 to 6.0% in 2020, reflecting the aging of America the rapid increase In the proportion of people older than age 65 that will take place as the Baby Boom generation reaches retirement age. Medicare (the program that provides health care to retirees) and Medicaid (the program that provides health care to poor people) ure projected to increuse from 5.4% of GDP in 2010 to 7.2% in 2020. This large incrouse refiocts the increusing cout of health care in the case of Medicaid and the increasing number of retireus in the cuse of Medicare. Given the above information, which of the following would be a prudent policy action? O A. Increase taxes and increase the debt-to-GDP ratio. OB. Decrense taxes and increase the debt-to-GDP ratio. OC. Increase taxes and decrease the debt-lo-GDP ratio. OD. Decrense taxen and decrease the debt-to-GDP ratio.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: Fiscal Policy, Incentives, And Secondary Effects

Section: Chapter Questions

Problem 13CQ

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