The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2012 dollars), and population (in thousands) of the United States in 1968, 1978, 1988, 1998, 2008, and 2018. The U.S. price level rose consistently over the period 1965–2018.

a. Why is real GDP greater than nominal GDP for all years until 2008 and lower for 2018?

b. Calculate the percent change in real GDP from 1968 to 1978, 1978 to 1988, 1988 to 1998, 1998 to 2008, and 2008 to 2018.
Which period had the highest growth rate?

c. Calculate real GDP per capita for each of the years in the table.

d. Calculate the percent change in real GDP per capita from 1968 to 1978, 1978 to 1988, 1988 to 1998, 1998 to 2008, and 2008 to 2018. Which period had the highest growth rate?

e. How do the percent change in real GDP and the percent change in real GDP per capita compare? Which is larger? Do we expect them to have this relationship? 

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Year 1968 1978 1988 1998 2008 2018 Nominal GDP (billions of dollars) $941 2,352 5,236 9,063 14,713 20,580 Real GDP (billions of 2012 dollars) $4,792 6,569 8,866 12,038 15,605 18,638 Population (thousands) 200,745 222,629 245,061 276,154 304,543 327,436