National Health Expenditures (NHEs) in the U.S. are calculated as a percentage of which economic indicator?

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National Health Expenditures (NHEs) in the U.S. are calculated as a percentage of Gross Domestic Product (GDP) because GDP represents the total economic output of a country. By using GDP as a benchmark, NHEs can be assessed in relation to the overall health of the economy, providing insight into how much of the nation's resources are dedicated to healthcare as compared to all other goods and services produced. This relationship helps policymakers, economists, and healthcare analysts understand trends in healthcare spending, evaluate the sustainability of healthcare financing, and make informed decisions regarding healthcare policy.

Considering the other options, the Consumer Price Index relates to inflation and price changes over time but does not directly correlate with national health spending. The National Debt pertains to the total amount borrowed by the government, while the Personal Savings Rate represents savings behavior of individuals, neither of which serve as a comprehensive measure for evaluating healthcare expenditures in the context of the entire economy. Thus, GDP is the most appropriate economic indicator for this calculation.

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