If the number of younger workers declines and the proportion of older wage earners and retirees continue rising, the U.S. and other leading industrialized economies should experience a rise in expected per-capital real income, resulting in an acceleration of current consumption and less saving in the long run, according to the textbook.

Question

Quizplus · Accepted Answer

A decline in the number of younger workers and a rise in the proportion of older wage earners and retirees can lead to a decrease in the labor force participation rate, potentially slowing economic growth. This scenario could result in lower per-capita real income growth, possibly leading to reduced consumption and increased saving for retirement, contrary to the acceleration of current consumption and less saving.

If the Number of Younger Workers Declines and the Proportion