Using the provided image...The objective is to understand the effects of inflation

PROBLEM 2 Consider the effects of inflation in an economy composed of only two people: Yale, a bean farmer, and Alga, a rice farmer. Yale and Alga both always consume equal amounts of rice and beans. In 2019 the price of beans was $1, and the price of rice was $4. Suppose that in 2020 the price of beans was $2 and the price of rice was $8. 1. Inflation was % Indicate whether Yale and Alga were better off, worse off, or unaffected by the changes in prices. 2. Check appropriate boxes Better Off Worse Off Unaffected Yale Alga Now suppose that in 2020 the price of beans was $2 and the price of rice was $4.80. 3. In this case, inflation was % Indicate whether Yale and Alga were better off, worse off, or unaffected by the changes in prices. 4. Check appropriate boxes Better Off Worse Off Unaffected Yale Alga Now suppose that in 2020, the price of beans was $2 and the price of rice was $1.60. 5. In this case, inflation was % Indicate whether Yale and Alga were better off, worse off, or unaffected by the changes in prices. 6. Check appropriate boxes Better Off Worse Off Unaffected Yale Alga 7. What matters more to Yale and Alga? - The overall inflation rate - The relative price of rice and beans