Answer to Question #192199 in Macroeconomics for Elisa

Question

What conditions in the medical-care industry likely account for the fact that Americans as a whole have been spending more money on medical care in the past several decades? Explain fully using the market model.

Answer 1

According to the report, the cost of inpatient and outpatient services (which includes primary care, clinic and hospital facilities, surgery care, and more) is the primary driver of high U.S. health spending, accounting for more than 60% of per capita health spending and more than three-quarters of the difference.