Answer:
Jennifer is losing purchasing power by 2%.
Explanation:
An increase in prices indicates a decrease in the purchasing power of the consumers. An increase in income means an increase in the purchasing power of the consumers.
A 5% raise means that Jennifer's income will increase by 5% and so will her purchasing power. But at the same time, a price rise by 7% means that her purchasing power will decrease by 7%.
This means that overall her purchasing power will decrease by 2%.
