## Answers

The inflation is higher than the raise recieved by Nora and this regard the explanation she would give is that due to the increase in the inflation the purchasing power would reduce and because the race is less than that of the inflation her net income of the real income reduces though the nominal income increases.

Because of the decrease in the real income, the advise that should be given is that, to escalate the information to the boss so that the increase would be higher than inflation so that real income increases.

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