Imagine that you calculate the inflation rate of some economy using the CPI. You get that inflation in 2008 was 22.4%, in 2009 was 12.5% and in 2010 was 3.9%. For your method you used 2010 as the base year, but your friend (who is a mathematical genius) tells you that your calculations would be more accurate if you used as base year 2008. What will be true about these new calculations?
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