Business, 07.04.2020 23:10 glowbaby123

Current predictions indicate that if nothing is done the Social Security trust fund will run out in 2035. After this point, retirees will only receive about 75% of their scheduled benefits. As a result, the 25-35 year old labor force has decided to begin saving a larger share of their income for retirement.

a) What effect might this have on aggregate demand? Increase or decrease?
b) Which component of aggregate demand would be effected?
c) Will this change your saving habits? Why?

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Current predictions indicate that if nothing is done the Social Security trust fund will run out in...

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