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Define inflation. Assume that you live in a simple economy in which only three goods are produced and traded: cashews, pecans, and almonds. Suppose that on January 1,2018 , cashews sold for 12.50 per pound, pecans were 4.00 per pound, and almonds were 5.50 per pound. At the end of the year, you discover that the cashew crop was lower than expected and that cashew prices had increased to 17.00 per pound, but pecan prices stayed at 4.00 and almond prices had actually fallen to 3.00. Can you
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