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)falling fertility rates
C)increasing health care costs
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All three factors listed contribute to the projected rise in government spending on Social Security and Medicare as a percentage of GDP. Increasing life expectancies mean that people are living longer and collecting benefits for a longer period of time. Falling fertility rates mean that there are fewer people entering the workforce and contributing to the programs through payroll taxes. Increasing healthcare costs mean that the medical treatments and procedures required by beneficiaries are becoming more expensive, driving up costs for the programs.

Which of the Following Contributes to the Projected Rise in Government