Economics of Macro Issues 7th Edition by Roger LeRoy Miller,Daniel Benjamin

Exercise 3

It is believed that much of the increase in the number of people collecting SSDI has resulted from decisions by workers at the SSA to make it easier to qualify for benefits. How are the disability rules set by SSA workers likely to change depending on (i) whether the SSA budget is held constant or expands when the number of SSDI recipients rises, (ii) the overall state of the economy, especially the unemployment rate, and (iii) the likelihood that individuals with disabilities will be discriminated against in the workplace?