Which of the following is not true about the Consumer Price Index (CPI)?
A) The U.S.income tax system is indexed based on the CPI.
B) The majority of labor union contracts have wages indexed by the CPI.
C) The CPI can be used to transform nominal variables into real variables.
D) The CPI can be used to measure the inflation rate.
E) Social security benefits are indexed by the CPI.

Question

Quizplus · Accepted Answer

While some labor union contracts may have wages indexed by the CPI, the majority do not. This statement is therefore false.

Which of the Following Is Not True About the Consumer