1.What is inflation?

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

3.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?)

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