If the inflation rate in the U.S. was 1.5% in 2010 and 3.0% in 2011, then we can estimate that the contribution of these inflationary trends towards the increase in healthcare expenditures in 2011 was

Question

Quizplus · Accepted Answer

According to text, "expenditures lag 40% of change in inflation for the current year and 20% of the change in inflation for the previous year."
Thus, 0.2 x 1.5 + .4 x 3.0 = 0.3 + 1.2 = 1.5%

If the Inflation Rate in the U