A true cost-of-living raise
A) must be based on the cost of living in the local area where the organization is based.
B) must be tied to economic indicators such as the CPI.
C) is the same thing as an automatic increase.
D) is the same thing as a merit raise.

Question

Quizplus · Accepted Answer

A true cost-of-living raise is tied to economic indicators such as the CPI (Consumer Price Index) which tracks the average price of goods and services in an economy. It is not necessarily based on the cost of living in the local area, as the CPI takes into account national inflation rates. It is also not the same thing as an automatic increase or a merit raise, which are based on factors other than the cost of living.

A True Cost-Of-Living Raise