When Does a Cost-Of-Living Allowance (COLA) Automatically Raise the Wage

question 44

Multiple Choice

When does a cost-of-living allowance (COLA) automatically raise the wage rate?

• A) when GDP increases
• B) when the consumer price index increases
• C) when taxes increase
• D) when the consumer price index is announced

---

Definitions:

Dewatered Zone

An area from which significant amounts of water have been removed, often related to geological or artificial processes affecting soil and rock permeability.

Aquifer

An aquifer is an underground layer of water-bearing permeable rock, rock fractures, or unconsolidated materials through which groundwater can move.

Sediments

Particles of soil, sand, or small pieces of rock deposited by water, wind, or ice.

Cone of Depression

A cone-shaped lowering of the water table around a pumping well, due to the removal of groundwater faster than it can be replenished.