Why Would Workers and Retirees Want to Have Their Wages

Multiple Choice

Why would workers and retirees want to have their wages and benefits indexed to the Consumer Price Index (CPI) ?

A) To lower their purchasing power during years of rising prices
B) To maintain their purchasing power during years of rising output
C) To maintain their purchasing power during years of declining output
D) To increase their purchasing power during years of negative inflation
E) To maintain their purchasing power during years of rising prices