after a successful annual review, your employer decides to give you a 2% raise. at the same time, the…

after a successful annual review, your employer decides to give you a 2% raise. at the same time, the inflation rate has been 3% for the year. considering the inflation rate, what is the real effect of your raise? choose 1 answer: a youre effectively making less money. b youre effectively making more money. c your purchasing power is unchanged.

after a successful annual review, your employer decides to give you a 2% raise. at the same time, the inflation rate has been 3% for the year. considering the inflation rate, what is the real effect of your raise? choose 1 answer: a youre effectively making less money. b youre effectively making more money. c your purchasing power is unchanged.

Answer

Answer:

A. You're effectively making less money.

Explanation:

Step1: Understand inflation and raise

Inflation reduces purchasing - power.

Step2: Compare raise and inflation rates

Raise is 2%, inflation is 3%.

Step3: Determine real - effect

Since inflation > raise, real purchasing - power decreases.