Q: "There is a change in the base year used to calculate the nation's real GDP and price index, from 1987 to 1992. The new figures will account for changes in tastes, technology, and other factors."

Part a) In the new figures, will the number for real GDP for 1987 become larger, smaller, or stay the same as it was before the change in base to 1992?

Part b) In the new figures, will the 1992 real GDP be larger, smaller, or the same as the 1992 nominal GDP?

Part c) What will the new 1992 price index number be?

Part d) Will the new 1987 price index number be larger, smaller, or the same as it was before?

Part e) The clipping claims that consumer tastes and technological advances will be accounted for. How would this accounting be done?

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