In terms of price indexes, what is a COLA?
A)A measure of the quality of living
B)A consumer price adjustment
C)An increase in wages designed to match consumer price increases
D)An estimate of gross domestic product
E)A measure of producer surplus

Question

Quizplus · Accepted Answer

A COLA, or Cost of Living Adjustment, is an increase in wages or benefits designed to match increases in the consumer price index, helping to maintain purchasing power.

In Terms of Price Indexes, What Is a COLA