PrepTest 79, Section 3, Question 4
Economist: Unemployment will soon decrease. If total government spending significantly increases next year, the economy will be stimulated in the short term and unemployment will decrease. If, on the other hand, total government spending significantly decreases next year, businesses will retain more of their earnings in the short term and employ more workers, thereby decreasing unemployment.
Economist: Unemployment will soon decrease. If total government spending significantly increases next year, the economy will be stimulated in the short term and unemployment will decrease. If, on the other hand, total government spending significantly decreases next year, businesses will retain more of their earnings in the short term and employ more workers, thereby decreasing unemployment.
Economist: Unemployment will soon decrease. If total government spending significantly increases next year, the economy will be stimulated in the short term and unemployment will decrease. If, on the other hand, total government spending significantly decreases next year, businesses will retain more of their earnings in the short term and employ more workers, thereby decreasing unemployment.
Economist: Unemployment will soon decrease. If total government spending significantly increases next year, the economy will be stimulated in the short term and unemployment will decrease. If, on the other hand, total government spending significantly decreases next year, businesses will retain more of their earnings in the short term and employ more workers, thereby decreasing unemployment.
The conclusion drawn by the economist is properly inferred if which one of the following is assumed?
Either total government spending will significantly decrease next year or else total government spending will significantly increase next year.
Government officials are currently implementing policies that are intended to reduce unemployment.
If there is a significantly increased demand for workers, then there will be a significant decrease in unemployment.
A significant increase in total government spending will slow the economy in the long run.
If the economy is not stimulated and businesses do not retain more of their earnings, then unemployment will not decrease.
Explanations
0 Comments