Use the website of The Economist magazine and search for the latest version of the 'Big Mac Index'. Answer the following questions:

(a) What does the index show and how does it relate to the concept of purchasing power

parity? (3 points)

(b) Describe some interesting cross-country comparisons in the data. Emphasis on the exchange rates of GBP vs USD, Yuan vs USD, Yen vs USD, and Rupees vs USD. (4 points)

(c) What does the index tell us about the relative size of the Chinese and US economies? (3 points)