The consumer price index:
a. tracks the value of output over time.
b. is not tied to cost-of-living adjustments.
c. doubles every five years in the economy.
d. is a weighted average of consumer prices.
e. is a broader price index measure than the implicit GDP deflator.
Question 2
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
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