If it's a picture of the same picture then it's known as the Droste effect. But a more generic for this is just a recursive picture.
There are a lot of software which can help you. The most famous are Photoshop, Corel Draw and so on.
Picture
Yes. To prove it, look up GHOST VIDEOS on google. OR You can go to the website yourghostvideos.com
at your profile on your profile pic it says change hit browse and go into your pictures and click the one you want