How could an aging population impact italy's economy? describe two potential effects that italy must combat when facing this issue.

Labor force and economic modellers generally predict that real wages will rise.

In the medium term, there will be a big percentage of the population which are receiving their pension payment as a product of all of the years they have contributed to the pension fund. This means the percentage of people who actually support the fund with their payments has reduced in comparison to the group which actually gets paid from the fund. This will cause a negative balance that will force the government to lend money in order to cover for due payments to this aging group of people.There will be a reduction in the population who represent the active workforce of the country. This leads to a shortage of workforce supply that could affect businesses operations and the overall economy.