Consider the following data on U.S. GDP:

Nominal GDP GDP Deflator Year (in billions of dollars) (base year 1996)

2000 9,873 118 1999 9,269 113

a. What was the growth rate of nominal GDP between 1999 and 2000? (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 1999 and 2000?

c. What was real GDP in 1999 measured in 1996 prices?

d. What was real GDP in 2000 measured in 1996 prices?

e. What was the growth rate of real GDP between 1999 and 2000?

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