Question

question 10 (1 point)
rather than aggregate health expenditures, we often look at real expenditures per capita. this calculation requires us to deflate the aggregate expenditures by:

the purchasing power of the currency.

the size of the population.

the cost of health care.

answers a. and b. are correct.

Explanation:

To find real expenditures per capita, we need to adjust for the purchasing power of the currency (to account for inflation, i.e., deflating by purchasing power) and also account for the cost of health care (since health care costs affect the real value of expenditures). The size of the population is used for per capita calculation (dividing by population size), but the deflation here involves adjusting for purchasing power and health care costs. So both a (purchasing power) and b (cost of health care) are correct.

Answer:

s a. and b. are correct.