Final answer:
National health expenditures encompass all healthcare costs aggregated from all sources, including federal and state healthcare programs like Medicare and Medicaid, individual expenses, and private insurance. Therefore, the correct answer is option 2).
Step-by-step explanation:
National health expenditures refer to all healthcare costs aggregated from all sources, which includes payments for programs like Medicare and Medicaid, out-of-pocket costs by individuals, and private insurance premiums. Federal and state healthcare spending is a significant portion of this, with healthcare programs like Medicare and Medicaid showing a steady growth as a percent of GDP, as indicated in the related figures.
It's important to note that federal spending on healthcare is substantial, but it also includes expenditures by state governments, particularly in the case of Medicaid, which is partially state-funded. Overall, federal, state, and local government spending encompasses a range of services, with healthcare being a key component. In this context, the correct answer to the question is option 2) All healthcare costs aggregated from all sources.