Use the population figures reported in table below to convert the real government receipts and expenditures in Table 2.3 into real per capita terms, answering the following questions.
YearPopulation of U.S. (thousands)
1960……………………………….180,671
1965……………………………….194,303
1970……………………………….205,052
1975……………………………….215,973
1980……………………………….227,726
1985……………………………….238,466
1990……………………………….250,132
1995……………………………….266,557
2000……………………………….282,385
2005……………………………….295,994
2010……………………………….308,746
a. Explain how real per capita federal expenditures changed over the period 2000 to 2010. Compare this to the change in nominal per capita federal expenditures.
b. Explain how real per capita state and local government expenditures changed over the period 1985 to 1995. Compare this to the change in real state and local government expenditures (not per capita).
c. Explain how real per capita grants to state and local governments changed over the period 1970 to 1980. Compare this to the change in real grants to state and local governments (not per capita).