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 used for the index from 2007 and 2011. Use this information to answer the following questions.

2007 2011 Country Price of Big Mac (in local currrency)
Price of Big Mac (in U.S.
dollars)
Price of Big Mac (in local currency)
Price of Big Mac (in U.S.
dollars)
Argentina peso8.25 $2.65 peso20.0 $4.84 Canada C$3.63 $3.08 C$4.73 $5.00 Euro area €2.94 $3.82 €3.44 $4.93 Japan ¥280 $2.31 ¥320 $4.08 United States $3.22 $3.22 $4.07 $4.07

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 2011?

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 2011, which nation experienced the most inflation? Did any of the nations experience deflation?