Final answer:
U.S. healthcare expenditures have both risen in absolute terms and as a percentage of GDP. Trends show that while other areas of spending like national defense have declined as a share of GDP, healthcare expenditures, such as those on Medicare and Medicaid, have steadily increased, particularly due to the aging Baby Boom cohort.
Step-by-step explanation:
In the past several decades, U.S. health care expenditures have risen absolutely and as a percentage of GDP. According to the information provided, since the 1960s, total federal spending has ranged generally from 18% to 22% of GDP. However, specific categories within federal spending have exhibited different trends. The share of GDP spent on national defense has mostly declined, but the share spent on Social Security and health programs, including Medicare and Medicaid, has steadily grown. This indicates an escalating investment in healthcare both in absolute terms and relative to the economy.
Furthermore, the aging population, notably the Baby Boom cohort, is substantially contributing to the rising costs of healthcare. Projections show healthcare spending growth of 5.5 percent annually until 2027. Specifically, spending on Medicare is expected to expand significantly, aiming to address the healthcare needs of an increasingly elderly population. Thus, the correct option concerning U.S. health care expenditures is (a) rise absolutely and as a percentage of GDP.