Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.
-According to this Application, how will an increase in government spending on entitlement programs affect the macroeconomy?
A) It will increase aggregate demand.
B) It will decrease aggregate demand.
C) It will increase aggregate supply.
D) It will decrease aggregate supply.

Question

Quizplus · Accepted Answer

Increased government spending on entitlement programs boosts the overall demand in the economy by providing more resources to the population, which in turn can lead to increased consumption and investment.

Recall the Application About How Society Will Cope with Increased