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Social security and other benefits to inflation

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Reference no: EM132550675

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 would policymakers link increases in Social Security and other benefits to inflation?

b. Is the small increase in benefits a "downside" of low inflation, as the article suggests? Why or why not?

Reference no: EM132550675

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