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The Commerce department announced that it is shifting from 1987 to 1992 



"The Commerce department announced that it is shifting from 1987 to 1992 as the base year for calculating the nation's real GDP and price index." 
1. In the new official figures, compared to the old official figures, the 1987 number for real GDP is 
a) smaller b) unchanged c) larger d) not enough information to tell 
2. In the new official figures, compared to the old official figures, the 1987 number for nominal GDP is 
a) smaller b) unchanged c) larger d) not enough information to tell 
3. In the new official figures, compared to the old official figures, the 1987 number for the price index is 
a) smaller b) unchanged c) larger d) not enough information to tell 
4. "The Commerce Department revised its estimate of real GDP to $3.877 trillion, up from the earlier estimate of $3.835 trillion. Before adjusting for inflation, GDP was $4.603 trillion, up from $4.523 trillion." The GDP deflator used for revised calculations is 
a) 118.0 or less b) more than 118.0 but not more than 118.5 
c) more than 118.5 but not more than 119.0 d) more than 119.0 
5. Suppose that inventories fall by $2b, consumption increases by $8b, unemployment insurance payments decline by $4b and imports rise by $1b. Then measured GDP should rise by 
a) $5b b) $7b c) $9b d) $11b



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