Ask Question
17 April, 14:37

Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true? Jennifer's purchasing power will rise by 2%. Inflation has no impact on purchasing power. Jennifer's purchasing power will rise by 7%. Jennifer is losing purchasing power by 2%

+1
Answers (1)
  1. 17 April, 15:04
    0
    Jennifer is losing purchasing power by 2%.

    Explanation:

    An increase in prices indicates a decrease in the purchasing power of the consumers. An increase in income means an increase in the purchasing power of the consumers.

    A 5% raise means that Jennifer's income will increase by 5% and so will her purchasing power. But at the same time, a price rise by 7% means that her purchasing power will decrease by 7%.

    This means that overall her purchasing power will decrease by 2%.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers