GDP in country X is $2,900 per capita, or about $3.3 trillion for all of country X. If the expected growth in the real GDP of country X is estimated to be about 7% for next year, health expenditures should increase by at least $203 per capita.

Question

Quizplus · Accepted Answer

Income elasticity of healthcare spending at the country level is greater than one. That means increases in health expenditures will be at least 7% x $2,900 = $203.

GDP in Country X Is $2,900 Per Capita, or About