Find the dependency ratio

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Question: The discussion surrounding Equation noted that problems can arise in maintaining the same replacement ratio in a population in which the dependency ratio is growing. Suppose that instead of keeping the replacement ratio constant over time, the goal of public policy is to maintain a constant level of benefit. Explain how this changes ones views of the consequences of an increasing dependency ratio, especially if wages are increasing over time due to productivity gains.

N_b X B = t X N_w X w

Reference no: EM131499961

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