Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 22

Assume the prices shown in Table 15P-4 are the prices of Big Macs in 2030, 2031, and 2032, and that changes in the price of Big Macs tend to closely keep up with inflation. For each of the four instances, determine the following.
(i) The percentage changes in price levels between each consecutive year.

(ii) Whether the economy was experiencing inflation, deflation, disinflation, or hyperinflation over each period. (Assume that inflation above 100 percent constitutes hyperinflation.)