Reading Comprehension

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

In the same RC...I got a doubt ---

The passage suggests that the high inflation in the
United States and many European countries in the
1980's differed from inflation elsewhere in which of
the following ways?
A. It fit the rational expectations theory of inflation
but not the inertia theory of inflation.
B. It was possible to control without causing a
recession.
C. It was easier to control in those countries by
applying tight monetary and fiscal policies
than it would have been elsewhere.
D. It was not caused by workers' and employers'
expectations.
E. It would not necessarily be considered high
elsewhere.


Answer is E. Can some one explain why not B??

kaulnikhil wrote:Is it possible to decrease
inflation without causing a recession
and its concomitant increase
line in unemployment? The orthodox
(5) answer is �no.� whether they
support the �inertia� theory of
inflation (that today�s inflation rate
is caused by yesterday�s inflation,
the state of the economic
(10) cycle, and external influences
such as import prices) or the
�rational expectations� theory
(that inflation is caused by
workers� and employers� expec-
(15) tations, coupled with a lack of
credible monetary and fiscal
policies), most economists
agree that tight monetary and
fiscal policies, which cause
(20) recessions, are necessary to
decelerate inflation. They point
out that in the 1980�s, many
European countries and the
United States conquered high
(25) (by these countries� standards)
inflation, but only by applying tight
monetary and fiscal policies that
sharply increased unemployment.
Nevertheless, some govern-
(30) ments� policymakers insist that
direct controls on wages and
prices, without tight monetary and
fiscal policies, can succeed in
decreasing inflation. Unfortu-
(35) nately, because this approach
fails to deal with the underlying
causes of inflation, wage and
price controls eventually collapse,
the hitherto-repressed
(40) inflation resurfaces, and in the
meantime, though the policymakers
succeed in avoiding a
recession, a frozen structure of
relative prices imposes distor-
(45) tions that do damage to the
economy�s prospects for longterm
growth.
--------------------------------------------------------------------------------------------------
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

I am confused btn B/C - can anyone help. I get a feeling that author is supporting the orthodox way of handling the situation and therefore C

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