A Social Security recipient's buying power is reduced as a result of inflation, so he or she tries to save money by buying cheaper alternatives to normal purchases. President Obama encouraged factoring this practice into the cost of living adjustment. What is this practice an example of?

Question

Quizplus · Accepted Answer

Chained CPI accounts for changes in consumer behavior, such as substituting cheaper alternatives when prices rise, which is what President Obama suggested for cost of living adjustments.

A Social Security Recipient's Buying Power Is Reduced as a Result