Business, 19.10.2021 03:10 raishagibson

5 . Problems and Applications Q5 Consider the effects of inflation in an economy composed of only two people: Alex, a bean farmer, and Becky, a rice farmer. Alex and Becky 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. Inflation was 0.5% . Indicate whether Alex and Becky were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Alex Becky Now suppose that in 2020 the price of beans was $2 and the price of rice was $4.80. In this case, inflation was 127% . Indicate whether Alex and Becky were bette

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5 . Problems and Applications Q5 Consider the effects of inflation in an economy composed of only tw...