Which of the following contributes to the projected rise in government spending on Social Security and Medicare as a percentage of GDP?
A)increasing life expectancies
B)increasing healthcare costs
C)increasing fertility rates
D)Both a and b are correct.

Question

Quizplus · Accepted Answer

Increasing life expectancies (option A) means that people are living longer and therefore relying on Social Security and Medicare benefits for a longer period of time, increasing government spending. Increasing healthcare costs (option B) means that the cost of healthcare services covered by Medicare is increasing, which leads to an increase in government spending on both Social Security and Medicare. Increasing fertility rates (option C) typically leads to a larger workforce and more taxpayers, which could offset some of the projected rise in government spending on Social Security and Medicare, but this effect would likely be minor compared to the effects of options A and B.

Which of the Following Contributes to the Projected Rise in Government