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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
Focus on portions that express an OPINION.
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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