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Main Idea
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bubbliiiiiiii
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ihatemaths
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Answer is B for the main idea .
analysis:
"most economists
agree that tight monetary and
fiscal policies, which cause
(20) recessions, are necessary to
decelerate inflation." - "Most" proves that it's a generally accepted opinion
Actually even B is partially correct . He(author) examines both the widely accepted and least used theories
analysis:
"most economists
agree that tight monetary and
fiscal policies, which cause
(20) recessions, are necessary to
decelerate inflation." - "Most" proves that it's a generally accepted opinion
Actually even B is partially correct . He(author) examines both the widely accepted and least used theories
My answer is also A for the author make the conclusion that "a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for longterm growth."ankit0411 wrote:Answer to this questions is A .ketkoag wrote:gmat740 wrote:Hey again opening up this thread.
I have a question from the same passage.
Which of the following, if true, would most strengthen the author�s conclusion about the use of wage and price controls?
A. Countries that repeatedly use wage and price controls tend to have lower long-term economic growth rates than do other countries.
B. Countries that have extremely high inflation frequently place very stringent controls on wages and prices in an attempt to decrease the inflation.
C. Some countries have found that the use of wage and price controls succeeds in decreasing inflation but also causes a recession.
D. Policymakers who advocate the use of wage and price controls believe that these controls will deal with the underlying causes of inflation.
E. Policymakers who advocate the use of wage and price controls are usually more concerned about long-term economic goals than about short-term economic goals
IMO D
Choice A state it directly
Choice D weaken the conclusion,not strengthen
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sahilchaudhary
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Thanks for the explanation buddy.mehravikas wrote:I think nowhere in the passage author supports the theory. The author tries to examine the root cause of inflation....etc.
He does not favors a particular approach and just goes on to examine a particular position..
That is why B...the author does points out the long term affects of that approach but he does not really explains that in detail..!!
I hope you are able to understand.
Sahil Chaudhary
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GMATGuruNY
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I received a PM requesting that I comment.
Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment?
THE ORTHODOX ANSWER is "no."
MOST ECONOMISTS AGREE that tight monetary and fiscal policies, which cause recessions, are necessary to
decelerate inflation.
THEY POINT OUT that many European countries and the United States conquered inflation by applying policies that sharply increased unemployment.
Nevertheless, POLICYMAKERS INSIST that direct controls can succeed in decreasing inflation.
Unfortunately, because THIS APPROACH FAILS TO DEAL with the underlying causes of inflation, a frozen structure imposes distortions that do damage to the economy's prospects for longterm growth.
The portions above all serve to assess the ORTHODOX view that it is not possible to decrease inflation without causing a recession.
Thus, the correct answer is B:
The primary purpose is to examine a generally accepted position.
The correct answer is B.
Focus on portions that express an OPINION.The primary purpose of the passage is to
A. apply two conventional theories.
B. examine a generally accepted position
C. support a controversial policy
D. explain the underlying causes of a
phenomenon
E. propose an innovative solution
Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment?
THE ORTHODOX ANSWER is "no."
MOST ECONOMISTS AGREE that tight monetary and fiscal policies, which cause recessions, are necessary to
decelerate inflation.
THEY POINT OUT that many European countries and the United States conquered inflation by applying policies that sharply increased unemployment.
Nevertheless, POLICYMAKERS INSIST that direct controls can succeed in decreasing inflation.
Unfortunately, because THIS APPROACH FAILS TO DEAL with the underlying causes of inflation, a frozen structure imposes distortions that do damage to the economy's prospects for longterm growth.
The portions above all serve to assess the ORTHODOX view that it is not possible to decrease inflation without causing a recession.
Thus, the correct answer is B:
The primary purpose is to examine a generally accepted position.
The correct answer is B.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
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