Why inflation affect increase in social security benefits


Problem

A newspaper article once reported that the U.S. economy was experiencing a low rate of inflation. It said that "low inflation has a downside: 45 million recipients of Social Security and other benefits will see their checks go up by just 2.8 percent next year."

a. Why does inflation affect the increase in Social Security and other benefits?
b. Is this effect a cost of inflation, as the article suggests? Why or why not?

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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Microeconomics: Why inflation affect increase in social security benefits
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