1. Problem 31: Compare the relative change in health care spending from 1977 to 2015 to the overall inflation rate. 2. Calculate the relative change in health care spending: $$\text{Relative change} = \frac{\text{Final value} - \text{Initial value}}{\text{Initial value}} = \frac{3.2 \text{ trillion} - 85 \text{ billion}}{85 \text{ billion}}$$ Convert units to be consistent: $3.2 \text{ trillion} = 3200 \text{ billion}$. $$= \frac{3200 - 85}{85} = \frac{3115}{85} \approx 36.65$$ So, health care spending increased by about 3665%. 3. Problem 32a: Calculate the relative change in average domestic airfare from 1995 to 2016. $$\text{Relative change} = \frac{349 - 292}{292} = \frac{57}{292} \approx 0.1952 = 19.52\%$$ 4. Compare this airfare change to the overall inflation rate (CPI). Since the problem does not provide CPI values, we note that the airfare increase of 19.52% is to be compared with CPI inflation over the same period. 5. Problem 32b: The average domestic airfare in 1995, adjusted to 2016 constant dollars, is $460, which is higher than the actual 2016 airfare of $349. This means that airfares rose less than expected with inflation because the inflation-adjusted 1995 airfare ($460) is greater than the 2016 airfare ($349). 6. Summary: - Health care spending increased by approximately 3665% from 1977 to 2015, which is much higher than typical inflation rates. - Average domestic airfare increased by about 19.52% from 1995 to 2016. - Adjusted for inflation, airfares actually decreased since the 1995 airfare in 2016 dollars ($460) is higher than the 2016 airfare ($349). Therefore, health care spending grew much faster than inflation, while airfares grew less than inflation over their respective periods.