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Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation

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Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation.

True or False: If the elderly consume the same market basket as other people, then Social Security would provide a decrease in their standard of living.

True

False

Healthcare costs have risen faster than overall inflation.

True or False: If the elderly consume a market basket that includes more healthcare than other people, then Social Security would have an uncertain impact on their standard of living.

True

False