To ensure that your salary maintains its real purchasing power from year to year,your nominal salary must be

Question

Quizplus · Accepted Answer

To ensure that your salary maintains its real purchasing power from year to year, it must be indexed - that is, adjusted for inflation by using a price index, such as the consumer price index (CPI), which measures changes in the prices of goods and services over time. This helps to maintain the real value of your salary by accounting for the effects of inflation on the cost of living.

To Ensure That Your Salary Maintains Its Real Purchasing Power