According to the data collected by the Center for Medicare and Medicaid Services, health spending in...

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According to the data collected by the Center for Medicare and Medicaid Services, health spending in the United States as a percentage of GDP has risen from 5% in 1960 to 18% in 2019. Which of the following are the forces that are responsible for this upward trend in health spending? Check all that apply. Baumol's cost disease implies that the cost of healthcare has been falling so that more people could afford it. As incomes continue to rise, people tend to spend a higher fraction of their budget on healthcare. Productivity in the healthcare sector rose with the rest of the economy, causing a steep increase in the wages of healthcare providers. Advances in medical technology produced expensive treatments for many diseases. As an aging population continues to grow older, the demand for healthcare rises. According to the data collected by the Center for Medicare and Medicaid Services, health spending in the United States as a percentage of GDP has risen from 5% in 1960 to 18% in 2019. Which of the following are the forces that are responsible for this upward trend in health spending? Check all that apply. Baumol's cost disease implies that the cost of healthcare has been falling so that more people could afford it. As incomes continue to rise, people tend to spend a higher fraction of their budget on healthcare. Productivity in the healthcare sector rose with the rest of the economy, causing a steep increase in the wages of healthcare providers. Advances in medical technology produced expensive treatments for many diseases. As an aging population continues to grow older, the demand for healthcare rises.

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The forces responsible for the upward trend in health spending as a percentage of GDP are As incomes continue to rise people tend to spend a higher fr... View the full answer