Explain the effect of such scenario on size of contributions


Problem

Assume that Social Security taxes remain constant, but that the number of employed people in the United States declines over time.

a) Explain the effect of such a scenario on the size of contributions for social insurance and the government deficit in the United States.

b) Assume now that employment remains constant, but there is an increase in unemployment insurance benefits. How would your answer to a) change?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain the effect of such scenario on size of contributions
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