Suppose the inflation rate is 7 percent and your boss offers you a wage increase of 6 percent. What happens?

Your nominal income increases and your purchasing power increases.

Your nominal income decreases and your real income increase by 1 percent.

Your nominal income increases and your purchasing power declines by 1 percent.

Your nominal income decreases and your real income increases by 7 percent.

Your nominal income increases by 6 percent but your real income decreases by 7 percent.

An employed person includes an individual who is:

not working but is available for work and has made specific efforts to find work during the previous four weeks.

either a full-time student, or staying home to take care of children, or an individual in an institution.

not in the labor force.

without a job and without pay.

a paid employee who worked one hour or more

What happens at 0% inflation? All of the following is true except:

At 0% inflation some of the prices in economy are falling.

At 0% inflation the economy is not at the most desirable rate of inflation.

At 0% inflation none of the prices in the economy are changing.

At 0% inflation there is no change in the average level of prices.