Social Security Is

question 193

Multiple Choice

Social Security is

• A) an insurance program operated by the federal government.
• B) a retirement program that invests the person's contributions into interest-earning financial assets so the proceeds can fund the person's retirement.
• C) a social insurance program that guarantees that an elderly person will never fall below the poverty level.
• D) an intergenerational transfer program that only vaguely relates to past earnings.

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Definitions:

Equilibrium Real National Output

The level of output where aggregate supply equals aggregate demand in an economy, adjusted for inflation.

Inventories

Goods that have been produced but remain unsold.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output).

Keynes

refers to John Maynard Keynes, a British economist whose theories on the causes of prolonged unemployment and recommendations for government intervention in economies to stimulate demand and control inflation have had a significant influence on modern macroeconomics.