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 2014. 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 2014?

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 2014, which nation experienced the most inflation? Did any of the nations experience deflation?

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Country Argentina Canada Euro area Japan United States 2007 Price of Big Mac (in local currrency) peso8.25 C$3.63 2.94 280 $3.22 Price of Big Mac (in U.S. dollars) $2.65 $3.08 $3.82 $2.31 $3.22 2014 Price of Big Mac (in local currency) peso21.0 C$5.25 3.68 370 $4.80 Price of Big Mac (in U.S. dollars) $2.57 $5.64 $4.95 $3.64 $4.80