If the US Economy Grew Rapidly in the Future, Would This Eliminate

question 167

Multiple Choice

If the U.S. economy grew rapidly in the future, would this eliminate the long run deficit of Social Security?

• A) No; future Social Security benefits are tied to nominal wages and therefore increases in real incomes will also increase the future retirement benefits.
• B) Yes; a rapid real growth rate would increase tax revenues without increasing the real benefit levels of future recipients.
• C) Yes, more rapid growth would lead to inflation and this would help eliminate the system's long run deficit.
• D) Yes, but only if the rapid growth led to a substantial increase in net exports.

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Definitions:

Evolutionary Psychology

A theoretical approach in psychology that examines mental structure from a modern evolutionary perspective, focusing on how evolutionary principles such as natural selection have shaped the mind and behavior.

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An American philosopher and psychologist, often referred to as the father of American psychology, known for his works on pragmatism and functionalism.

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The study of how evolutionary principles help explain the structure and function of the human mind.

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