i. Social security, old-age pensions, many apartment leases and many labor contracts are tied to the change in the CPI. ii. Millions of employees in automobile, steel and other industries have their wages adjusted upward when the CPI increases. The specifics are in the management-union contracts. These clauses in the contracts are referred to as "cola clauses."
iii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

Statements (i) and (ii) are correct as they describe how the CPI affects social security, old-age pensions, apartment leases, labor contracts, and employee wages in certain industries. However, statement (iii) is incorrect as it describes how sales are deflated, not how the CPI is used in contracts and agreements.

I Social Security, Old-Age Pensions, Many Apartment Leases and Many