The Economist regularly publishes data on the price of the Big Mac in different countries and exchange rates. The accompa- nying table shows some data used for the index from 2003 and 2009. Use this information to answer the following questions.
|
Country
|
2003
Price of Price of
Big Mac Big Mac
(in local (in U.S.currency) dollars)
|
2009
Price of Price of
Big Mac Big Mac
(in local (in U.S.currency) dollars)
|
|
Argentina
|
peso4.10
|
$1.42
|
peso11.50
|
$3.57
|
|
Canada
|
C$3.20
|
$2.21
|
C$3.89
|
$3.35
|
|
Eurozone
|
€2.71
|
$2.98
|
€3.31
|
$4.62
|
|
Japan
|
¥262
|
$2.18
|
¥320
|
$3.46
|
|
United States
|
$2.71
|
$2.71
|
$3.57
|
$3.57
|
a. Where was it cheapest to buy a Big Mac in U.S. dollars in 2003?
b. Where was it cheapest to buy a Big Mac in U.S. dollars in 2009?
c. Using the increase in the local currency price of the Big Mac in each country to measure the percent change in the overall price level from 2003 to 2009, which nation expe- rienced the most inflation? Did any of the nations experi- ence deflation?