Question: . Why do we consider a business - cycle expansion different from long - run economic growth? Why do we care about the size of

. Why do we consider a business-cycle expansion different from long-run economic growth? Why do we care about the size of the long-run growth rate of real GDP relative to the size of the growth rate of the population?
Country 20072019
Price of Big Mac (in local currency) 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 peso120.0 $2.87
Canada C$3.63 $3.08 C$6.77 $5.16
Euro area 2.94 $3.824.08 $4.58
Japan 280 $2.31390 $3.59
United States US$3.22 $3.22 US$5.74 $5.74
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 2019?
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 2019, which nation experienced the most inflation? Did any of the nations experience deflation?

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