Part 2 - Big Mac" Economics (Application & Thinking) Inflation is a quantitative measure that refers to the general rise in the level of prices over time. Consider the following data, which tracks the cost of a Bic Mac from 2001 to 2020. All prices are in CAD. Year Price ($) 2001 3.33 2002 3.33 2003 3 20 2004 3.19 2005 8.28 2006 3.52 2007 3.88 2008 4.09 2009 3.89 2010 4.17 2011 4.78 2012 5.12 2013 5.53 2014 5.64 2015 5.85 2016 6.00 2017 5.97 2018 6.65 2019 6.77 2020 6.88 Source: https://www.economist.comews/2020/07/15/the-big-mac-index Questions: 1. Plot the Big Mac price data as a function of time. You may use Google Sheets to complete this part. Be sure to properly label your axes. [A2] 2. Algebraically determine the average annual growth rate for the price of a Big Mac . To do this, you can pick any two data points from the table. For best results, choose a point near the beginning and end of the data set. Please show all your work. Reference Lesson 1.9 Example 2. [A4] 8. How does your value in the previous question compare to the Bank of Canada's annual inflation target (discussed in Lesson 1.9)? Briefly comment on any discrepancies, if there are any. What are some possible reasons for this discrepancy? [12] Explain a general exponential growth equation that models the price of a Big Mac as a function of time. [All 5. Use your equation to predict the price of a Big Mac" in the year 2050. Please show all your work. [A2] 6. Use your equation to estimate what the price of a Big Mac" was in the year 1970. Please show all your work. [T2]