1.6. Consider the following data on U.S. GDP:

a. What was the growth rate of nominal GDP between 1996 and 1997? (Note: The growth rate is the percentage change from one period to the next.)

b. What was the growth rate of the GDP deflator between 1996 and 1997?

c. What was real GDP in 1996 measured in 1992 prices?

d. What was real GDP in 1997 measured in 1992 prices?

e. What was the growth rate of real GDP between 1996 and 1997?

f. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.

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YEAR NOMINAL GDP (IN BILLIONS) GDP DEFLATOR (BASE YEAR 1992) 1996 1997 7,662 8,111 110 112