Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
treetreee treetreee
wrote...
Go to Answer
Posts: 374
Rep: 0 0
4 years ago
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, if increases in health-care expenditures crowd out investment, living standards would

▸ fall in the short run, but rise again in the long run.

▸ rise in the short run, and fall back to their original level in the long run.

▸ fall in the long run.

▸ rise in the long run.
Textbook 
Macroeconomics: Principles, Applications and Tools

Macroeconomics: Principles, Applications and Tools


Edition: 7th
Authors:
Read 150 times
5 Replies
Replies
Answer verified by a subject expert
NashuaNashua
wrote...
#1
Posts: 380
Rep: 47 1
4 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

wrote...
#2
4 years ago
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, increases in health-care expenditures will have to crowd out some other component of GDP. The preferred outcome stated in the Application is that increased spending on health-care would come at the expense of

▸ spending on non-durables such as food and clothing.

▸ investment spending.

▸ spending on services such as higher education.

▸ spending on consumer durables or larger houses.
wrote...
#3
4 years ago
spending on consumer durables or larger houses.
wrote...
#4
4 years ago
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?

▸ 18

▸ 30

▸ 62

▸ 78
wrote...
#5
4 years ago
30
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1291 People Browsing
 113 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1161
  
 1056
  
 684
Your Opinion
Which country would you like to visit for its food?
Votes: 204
Previous poll results: Does a gender wage gap exist in America?