Is it possible to decrease inflation without causing a recession and its concomitant increase in unemployment? The orthodox 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 cycle, and external influences such as import prices) or the ''rational expectations" theory (that inflation is caused by workers' and employers' expectations, coupled with a lack of credible monetary and fiscal policies), most economists agree that tight monetary and fiscal policies, which cause recessions, are necessary to decelerate inflation. They point out that in the 1980's, many European countries and the United States conquered high (by these countries' standards) inflation, but only by applying tight monetary and fiscal policies that sharply increased unemployment. Nevertheless, some governments' policymakers insist that direct controls on wages and prices, without tight monetary and fiscal policies, can succeed in decreasing inflation. Unfortunately, because this approach fails to deal with the underlying causes of inflation, wage and price controls eventually collapse, the hitherto-repressed inflation resurfaces, and in the meantime, though the policymakers succeed in avoiding a recession, a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth.
Which of the following, if true, would most strengthen the author's conclusion about the use of wage and price controls?
Countries that repeatedly use wage and price controls tend to have lower long-term economic growth rates than do other countries.
Countries that have extremely high inflation frequently place very stringent controls on wages and prices in an attempt to decrease the inflation
Some countries have found that the use of wage and price controls succeeds in decreasing inflation but also causes a recession.
Policymakers who advocate the use of wage and price controls believe that these controls will deal with the underlying causes of inflation.
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.
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正确答案是 A。A 选项指出,那些反复使用工资和价格控制的国家,其长期经济增长率通常要低于其他国家。因此,如果这个声明是真的,就能有力地支持作者关于使用工资和价格控制的结论。B、C、D 和 E 这些选项都不能有力地支持作者的结论,因此它们都不是正确答案。
定位要看清楚关键词!题目问的是:the use of wage and price controls,即,direct controls on wages and prices;而不是tight monetary and fiscal policies
所以相对应的句子是 Unfortunately, because this approach fails to deal with the underlying causes of inflation, wage and price controls eventually collapse, the hitherto-repressed inflation resurfaces, and in the meantime, though the policymakers succeed in avoiding a recession, a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth.
其中, though the policymakers succeed in avoiding a recession, a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth是关键句;
错选C选项,C选项是tight monetary and fiscal policies相关的内容,因此要排除
a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth.
Unfortunately, because this approach fails to deal with the underlying causes of inflation, wage and price controls eventually collapse, the hitherto-repressed inflation resurfaces, and in the meantime, though the policymakers succeed in avoiding a recession, a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth. 没有提到会succeed in decreasing inflation
答案來自這句:a frozen structure of relative prices imposes distortions that do damage to the economy's prospects for long-term growth.
不知道选什么答案的时候,一定要仔细读完每一个选项