If Social Security Were Changed So That Those Retiring at a Later

question 42

Multiple Choice

If Social Security were changed so that those retiring at a later age receive substantially more benefits,then the substitution effect would work to ________ the retirement age and the income effect would work to ________ the retirement age.

• A) increase; increase
• B) increase; decrease
• C) decrease; decrease
• D) decrease; increase

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Definitions:

Unemployment

The situation when individuals who are capable of working and are looking for a job cannot find employment.

U.S. Newspapers

Print or digital publications in the United States that provide news, analysis, opinion, and features on a variety of topics.

Money Supply

The complete aggregation of monetary assets within an economy at a particular point, including cash, coins, and the funds in checking and savings accounts.

Velocity

The rate at which money circulates within an economy, often measured as the ratio of nominal GDP to the money supply.