When wages or benefits are automatically increased based on the reported inflation rate, it is called the ________ adjustment.
A) natural flow of money
B) cost-of-living
C) change in exports
D) change in imports

Question

Quizplus · Accepted Answer

The cost-of-living adjustment is a policy in which wages or benefits are adjusted based on the reported inflation rate. This is done to ensure that workers and recipients of benefits can maintain their purchasing power even as prices increase due to inflation.

When Wages or Benefits Are Automatically Increased Based on the Reported