Answer:
correct answer is: Jennifer is losing purchasing power by 2%.
Explanation:
The price index provides the price variation in a given economy. In this case, the Bureau of Labor Statistics reported that there is a variation, ie an inflation of 7%. Thus, despite Jennifer's 5% increase in income, her purchasing power will decrease by 2% as 7% inflation is higher than her 5% readjustment. That is, prices are increasing more than their income, losing purchasing power.
