The process of periodically adjusting social benefits or wages to account for increases in the cost of living is called

Question

Quizplus · Accepted Answer

Indexing is the process of adjusting social benefits or wages to account for increases in the cost of living. In this way, beneficiaries or workers can maintain their purchasing power even when prices rise due to inflation. In contrast, inflation refers to the general increase in prices across an entire economy, while benchmarking involves comparing a company's performance to that of its competitors. Bracket creep refers to the natural rise in income tax rates that occurs when inflation pushes taxpayers into higher tax brackets.

The Process of Periodically Adjusting Social Benefits or Wages to Account