Question

The relationship between gross domestic product (GDP) and national health expenditures (NHE) is best described as which of the following?

1) The NHE needs the GDP to grow for healthcare providers to be successful.
2) GDP has been growing faster than NHE, so we can be sanguine about healthcare costs.
3) NHE has been growing faster than GDP, so we should be concerned about sustainability.
4) NHE is increasing because of inflation, demographic changes, and increased personal expenditures.
5) Choices C and D
6) Choices A and C

Answer 1

The relationship between GDP and NHE is described by option 5) Choices C and D. This indicates that NHE is growing faster than GDP, a concern for economic sustainability, and that NHE's growth is driven by several factors including inflation and demographic changes.

Step-by-step explanation:

The relationship between gross domestic product (GDP) and national health expenditures (NHE) is best described as NHE having been growing faster than GDP, which raises concerns about sustainability. Additionally, the growth in NHE is influenced by factors such as inflation, demographic changes, and increased personal health expenditures. Therefore, the correct answer to the relationship between GDP and NHE is option 5) Choices C and D.

GDP represents the total market value of all goods and services produced within a country in a given period and is a critical indicator of economic health. On the other hand, NHE represents the total health spending from both public (Medicare and Medicaid) and private sources. Over time, healthcare expenditures have risen as a proportion of GDP, indicating that the health sector is becoming a larger part of the economy.

This trend implies that as the economy grows, a more significant portion of the economic output is devoted to health care. This might affect the sustainability of health financing and can have implications for government budgets, private business, and household finances.