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Measuring the cost of living

Which of the price indices would be most useful for adjusting a paycheck for inflation?

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Expert Solution

The CPI would be the best price index to use for adjusting a paycheck during an inflation. This is because the CPI measure the prices of the goods and services purchased by a normal urban consumer. It measure the prices of goods and services that individuals buy with their paycheck.

CPI, which measures the prices of goods and services purchased by a normal urban consumer.

Joes answered 3 years ago
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