Which of the following, if true, would most strengthen The author's conclusion about the use of wage...

题目信息

Is it possible to decrease inflation without causing a recession and its concomitant increase line 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 policy-makers 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?

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 o 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： A:Countries that repeatedly use wage and price controls tend to have lower long-term economic growth rates than do other countries.

作者对于wage和price控制的结论定位到Unfortunately, because this approach fails to deal with the ...s prospects for long term growth意思是这种做法忽略了 underlying causes of inflation,，而且这种被控制的价格造成的distortions 会do damage to the economy’s prospects for longterm growth。需要加强这个结论，也就是要说这个方法不好。

选项A 一直用这方法的国家tend to have lower long-term economic growth rates than do other countries.说明这个方法不好，正确

选项B 只是说用了这方法，没有说用了这方法说明后果，起不到说明这个做法不好的作用

选项C 说到了succeed，说到了它好的地方，不对

选项D will deal with the underlying causes of inflation.不对，这个方法本身就是没有处理根本问题的

选项E 是有害于长期利益

笔记