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How do index numbers help in adjusting salaries and allowances?
  • a)
    By measuring the purchasing power of money.
  • b)
    By evaluating macroeconomic conditions.
  • c)
    By reflecting changes in the price level.
  • d)
    By providing an overall indication of trends.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
How do index numbers help in adjusting salaries and allowances?a)By me...
Index numbers help in adjusting salaries and allowances by reflecting changes in the price level. When prices rise or fall, index numbers provide a basis for making adjustments to ensure that the real value of income is maintained.
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How do index numbers help in adjusting salaries and allowances?a)By measuring the purchasing power of money.b)By evaluating macroeconomic conditions.c)By reflecting changes in the price level.d)By providing an overall indication of trends.Correct answer is option 'C'. Can you explain this answer?
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