Final answer:
The sequence of adjustments is crucial when it comes to (A) estimates, as they require continuous updates to remain accurate. The Consumer Price Index (CPI) is the most suitable index to adjust paychecks for inflation, ensuring consistent purchasing power.
Step-by-step explanation:
The sequence of adjustments is most important when dealing with estimates. Estimates are projections of future costs or values that often require adjustments as new information becomes available or as circumstances change. This process is vital to ensure that estimates stay accurate over time.
For the question about which price index would be best to use to adjust your paycheck for inflation, the most commonly recommended index is the Consumer Price Index (CPI). The CPI tracks how prices for a market basket of goods and services have changed on average over time for urban consumers. By adjusting your paycheck according to changes in the CPI, you are effectively keeping your purchasing power consistent despite inflation.