Each year, The Economist publishes data on the price of the Big Mac in different countries and exchange rates. The accompanying table shows some data from 2007 and 2016. Use this information to answer the following questions.

a. Where was it cheapest to buy a Big Mac in U.S. dollars in 2007?

b. Where was it cheapest to buy a Big Mac in U.S. dollars in 2016?

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 2007 to 2016, which nation experienced the most inflation? Did any of the nations experience deflation?

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2007 2016 Country Price of Big Price of Big Price of Big Price of Big Mac (in local Mac (in U.S. Mac (in local Mac (in U.S. currency) dollars) currency) dollars) Argentina peso8.25 $2.65 peso33.0 $2.39 Canada C$3.63 $3.08 C$5.84 $4.14 Euro area 2.94 $3.82 3.72 $4.00 Japan 280 $2.31 \370 $3.12 United States $3.22 $3.22 $4.93 $4.93