Part I. A newspaper article once reported that the US economy was experiencing a low rate of inflation. It said that "low inflation has a downside:

Part I. A newspaper article once reported that the US 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?

Part II. Short Essay( two pages required)

Read the following article:

Many face new normal: Part-time pay, Full-time bills. The Wall Street Journal, Eastern edition. (11/13/14.)

 What is your interpretation of the advantages and disadvantages in the way in which unemployment is measured? Is unemployment a social or an individual’s responsibility?

Part I.Inflation affects the Social security and other benefits because social Security benefits are subjecteach year to a cost-of-living adjustment (COLA).The adjustment, which is based on the...