Question

From one year to the next, aggregate GDP rises by 2 percent and aggregate healthcare expenditures rise by5 percent. From this information we can infer that: a. The health expenditure share has fallen, because healthcare is only a small fraction of GDP. b. The health expenditure share has risen, because health expenditures have risen by more dollars than the GDP. c. The health expenditure share has risen, because health expenditures have risen by a greater percentage than the GDP. d. We have insufficient information to answer the question.

Answer 1

Answer: B. The health expenditure share has risen, because health expenditures have risen by more dollars than the GDP

Step-by-step explanation:

The gross domestic product refers to the total amount of goods and services that a country produces.

In this case, since the aggregate GDP rises by 2 percent and the aggregate healthcare expenditures rise by 5 percent, then it can be deduced that the health expenditure share has risen, because health expenditures have risen by more dollars than the GDP.