Answer to Question #242796 in Macroeconomics for ruth

Question

The chapter explains that Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation. a. If the elderly consume the same market basket as other people, does Social Security provide the elderly with an improvement in their standard of living each year? Explain

Answer 1

Social security makes the elderly access the retirement income. It makes sure the elderly get access through respective organization. Similarly, several initiatives have been built through social security implementations to improve elderly access to medical services and other inevitable measures.