Week 10 Flashcards
1
Q
What are the fiscal challenges in the long run?
A
Fiscal problem of the 21st Century:
- Govt spending will rise as % of GDP
- Annual budget deficits could reach 20% of GDP
2
Q
What do most large economies have and what is the impact?
A
Most have an aging population
This will lead to a shrinking in the working population in the long run
More elderly people
3
Q
What are age-dependency ratios?
A
Sum of younger 15 and above 65 relative to working age population
How many people depend on other people to sustain them through their income
4
Q
A
