One reason the CPI is followed very closely by the government,businesses,and workers is that:
A)it is the best measure of worker productivity in the service sector.
B)it indicates whether we are running a budget surplus or a deficit.
C)some wages,interest rates,tax rates,and government benefits are tied to changes in the value of the CPI.
D)the gross national product is computed from the reported increases in the CPI.

Question

Quizplus · Accepted Answer

Some wages, interest rates, tax rates, and government benefits are tied to changes in the value of the CPI. As a result, fluctuations in the CPI can have significant impacts on the incomes and purchasing power of workers and businesses, as well as on the government's tax revenues and spending. Therefore, it is closely monitored by the government, businesses, and workers. The other options presented in the question are not true as the CPI does not measure worker productivity in the service sector, is not directly related to budget surplus or deficit, and is not used to compute the gross national product.

One Reason the CPI Is Followed Very Closely by the Government,businesses,and