1. If the Consumer Price Index rose from 120 to 138 during a 12 month period. What was the rate of inflation during this time? 2. This year Anjun's monthly pay rose from $1000 (last year's rate) to...

1. If the Consumer Price Index rose from 120 to 138 during a 12 month period. What was the rate of inflation during this time?


2. This year Anjun's monthly pay rose from $1000 (last year's rate) to $1100 (this year's rate).  During the year the inflation rate for consumer products was 12%.

A.  What happened to Anjun's nominal income?  (up or down, and by what percent?) Up by 9.09%

B.  What happened to Anjun's real income?  (up or down and by what percent?)