The late Nobel Laureate Robert Fogel of the University of Chicago argued, "Expenditures on health care are driven by demand, which is spurred by income and by advances in biotechnology that make health interventions increasingly effective."
a. If Fogel was correct, should policymakers be concerned by projected increases in health care spending as a percentage of GDP?
b. What objections do some economists raise to Fogel's analysis of what is driving increases in spending on health care?