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Fiscal Policy: Spending

Question 6 • IL-Economics

Government spending on Medicare and Medicaid increased by [___] of GDP between 1965 and 2005.

Answer
A
2.0%
B
4.0%
C
6.0%

Explanation

Medicare and Medicaid spending rose from a small share of GDP in 1965 to about 4% of GDP by 2005. That is an increase of approximately 4.0 percentage points of GDP, so the correct choice is 4.0%.

AI-written and checked against the verified answer.

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