Merit Raises Generally Are Based on the Cost of Living

question 8

True/False

Merit raises generally are based on the cost of living in a geographic area.

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Definitions:

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the amount of money or credit available in the economy.

CPI

The Consumer Price Index tracks the weighted average price changes of a basket containing consumer goods and services, such as food, healthcare, and transportation, to gauge average price movements.

Prices Increase

A situation where the general level of prices for goods and services rises, often measured by the inflation rate.

CPI

A calculation tool, the Consumer Price Index, measures the mean prices of a selected basket of consumer services and goods including food, transportation, and medical services via their weighted average.