During what kind of economic conditions are cost of living adjustments generally used?
A)Periods of high inflation
B)Periods of low inflation
C)Periods of depression
D)Periods of stagnation

Question

Quizplus · Accepted Answer

Cost of living adjustments are generally used during periods of high inflation.
Key Takeaway: Using cost of living adjustments during periods of high inflation can help to reduce the overall effects of wage compression. Usually, these kinds of adjustments are more popular in public sector jobs that in the private sector.

During What Kind of Economic Conditions Are Cost of Living