Recall the Application About the Possibility of Increases in Health-Care

Multiple Choice

Recall the Application about the possibility of increases in health-care expenditures crowding out consumption or investment spending to answer the following question(s) . In 1950, health-care expenditures in the United States were 5.2 percent of GDP; by 2000, this share had risen to 15.4 percent. Driving these increases were several factors: increasing relative prices of health care compared to other goods, a larger population of the elderly, and increased longevity. Since 1950, the average life span has increased by 1.7 years per decade.
-According to the Application, economists Charles I. Jones and Robert E. Hall suggest that normal economic growth will cause health-care expenditures to be approximately what percent of GDP by the mid-century?

A) 18
B) 30
C) 62
D) 78