Recall Application 1, "New Methods to Measure the Long-Term Fiscal Imbalances for the United States," to answer the
following questions:
-According to the application, why do the federal budget deficit projections not fully portray the long run problems of the United States?

Question

Quizplus · Accepted Answer

The federal budget deficit projections do not fully portray the long run problems of the United States because the value of payments to be made by the government in the future, particularly for entitlement programs like Social Security and Medicare, is expected to go way up as the population ages. This is due to the increased demands for healthcare and retirement benefits associated with an aging population, which is not fully accounted for in current deficit projections.