The intent of indexing is to
A)raise tax revenue automatically during inflation.
B)shift the short-run Phillips curve to the right.
C)take most of the sting out of inflation.
D)reduce inflation gradually.

Question

Quizplus · Accepted Answer

The intent of indexing is to take most of the sting out of inflation by automatically adjusting wages, prices, and/or taxes to keep up with the rate of inflation. This helps to prevent a decrease in purchasing power and reduces the negative impact of inflation on individuals and the overall economy. It does not directly raise tax revenue or shift the short-run Phillips curve, nor does it necessarily reduce inflation gradually.

The Intent of Indexing Is to