<h2>Key Concepts and Summary</h2>
<p>A payment is said to be indexed if it is automatically adjusted for inflation. Examples of indexing in the private sector include wage contracts with cost-of-living adjustments (COLAs) and loan agreements like adjustable-rate mortgages (ARMs). Examples of indexing in the public sector include tax brackets and Social Security payments.</p>
<h2>Glossary</h2>
<h3>adjustable-rate mortgage (ARM)</h3>
<p>a loan used to purchase a home in which the interest rate varies with market interest rates</p>
<h3>cost-of-living adjustments (COLAs)</h3>
<p>a contractual provision that wage increases will keep up with inflation</p>
<h3>indexed</h3>
<p>a price, wage, or interest rate is adjusted automatically for inflation</p>

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Key Concepts and Summary

Economics studies social behavior guiding the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society, and for the production of goods and services, growth of production and welfare over time, and a great variety of other complex issues of vital concern to society. 

Economics

Discover the key concepts and practical solutions for measuring inflation, including tracking inflation, using index numbers, and applying substitution and quality/new goods biases.


Key Concepts and Summary

Key Concepts and Summary

Glossary

adjustable-rate mortgage (ARM)

cost-of-living adjustments (COLAs)

indexed

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