The consumer price index is frequently used
A) to form the basis for cost-of-living increases in social security payments.
B) to form the basis of measurements of labor productivity.
C) to form the basis for cost-of-living clauses in labor contracts.
D) to form the basis of measures of international trade imbalances.
E) a and c.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is primarily used to adjust social security payments and labor contracts for cost-of-living changes, as indicated in options A and C, making E the correct choice. It is not directly used for measuring labor productivity or international trade imbalances.

The Consumer Price Index Is Frequently Used