An aging population will impact Italy’s economy in all of the following ways except by __________.

• A. raising government spending on pensions
• B. increasing the demand for healthcare services
• C. boosting the birth rate significantly
• D. reducing the size of the labor force

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the economic effects of an aging population. An aging population typically means a higher proportion of elderly people relative to the working-age population.
2. Step 2: Analyze how an aging population affects government spending. Since more people retire, government spending on pensions usually increases.
3. Step 3: Consider the demand for healthcare services. Older populations generally require more healthcare, so demand for healthcare services tends to rise.
4. Step 4: Examine the labor force size. With more retirees and fewer young workers, the size of the labor force tends to shrink.
5. Step 5: Evaluate the impact on birth rates. An aging population does not directly cause a significant boost in birth rates; in fact, birth rates often decline or remain stable, so this is the exception.