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While Governor Verdant has been in office, the state s

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Re: austere budgets [#permalink]

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New post 03 Mar 2011, 20:36
yup, in a simple thinking, A is correct. If we look back the critical reason, about the growth average, they didn't focus on the growth figures ( 6% and 11.5%) that include or exclude an basic inflation rate.
So, I also pending between A and B
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Re: austere budgets [#permalink]

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New post 03 Mar 2011, 22:36
Question Type: Weaken

Argument says:
Drop in annual budget means drop in city spending.

A. things were more expensive in the previous governor's term than are now. [Weaken]
B. Both Federal and State taxes have been lowered. IRRELEVANT. discussion revolves around drop annual budget and State spending.
C. each year budget was greater than the last year. IRRELEVANT. We are interested in average annual budget rather than each year budget.
D. Charges were introduced or discontinued for numerous services. IRRELEVANT. We are interested in annual budget as whole, we are not interested in cluster of services. May be those services were not expensive.
E.what old governor did to reduce spending is IRRELEVANT. We are interested in how current governor's annual budget relates with spending of the city.
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Re: austere budgets [#permalink]

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New post 05 Mar 2011, 12:32
kumarp256 wrote:
While Governor Verdant has been in office, the state’s budget has increased by an average of 6 percent each year. While the previous governor was in office, the state’s budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.

Which of the following, if true, would most seriously weaken the conclusion drawn above?

(A) The rate of inflation in the state averaged 10 percent each year during the previous governor’s term in office and 3 percent each year during Verdant’s term.
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
(D) During Verdant’s term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor’s term.
(E) During the previous governor’s term in office, the state introduced several so-called “austerity” budgets intended to reduce the growth in state spending.

thanks


i think the answer is d which looks more logical and clear
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Re: While Governor Verdant has been in office, the state s [#permalink]

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New post 02 Mar 2012, 15:11
I didn't know what austere meant. Confused me quite a bit. Oh well.
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Re: While Governor Verdant has been in office, the state s [#permalink]

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New post 07 Mar 2012, 03:35
IMO all options are wrong.
A argument does not talk about inflation. out of scope
B Argument does not talk about tax rate. out scope
C break up category : tells more about increase in budget (6% )
D Charging private citizen is out of scope
E although the term "austerity" was introduced during privious gov, The conclusion of argument states that austerity budget during current gov cause slow down. does not weakens the conclusion

IMO This is not GMAT like CR
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Re: While Governor Verdant has been in office, the state s [#permalink]

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New post 05 Mar 2013, 15:59
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I considered A and E. Finally I picked E and got the question wrong. I did some researches and see there are many people on the same boat with me. Because we think former governor's policies (austerity budgets) will affect the growth rate in the current governor term. However the reference is too far. Answer A shows a more direct reason. Very good question, thanks so much.
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Re: austere budgets [#permalink]

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New post 23 Apr 2014, 06:11
rajeshaaidu wrote:
karlsyf wrote:
I think the answer is A, reasoning below.

Budget is equivalent to spending, i.e. output.

Argument is a lack of spending has caused economic slowdown under Governor Verdant.
argument, but they haven't.
E) concerns the cause of austere budgets, not their effect, not relevant.

Answer is A) real spending increase under Verdant is 6% - 3% = 3%, real spending increase under previous governer is 11.5% - 10% = 1.5%

Clearly Verdant spends more in real terms, and therefore is not more austere.


Agree with answer and explanation!!!


please note that more percentage does not equal greater number!
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Re: While Governor Verdant has been in office, the state s [#permalink]

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New post 24 Oct 2014, 12:08
E should be the answer. Conclusion is - the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.
E provides an alternate cause that weakens the 'effect'.
A would rather be OOS. How does inflation affects the slow down ? What if there is no relationship between rate of inflation and slowdown ?
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Re: While Governor Verdant has been in office, the state s [#permalink]

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Re: While Governor Verdant has been in office, the state s [#permalink]

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New post 11 Jun 2016, 01:47
Answer is A

Here's the explanation


While Governor Verdant has been in office, the state’s budget has increased by an average of 6 percent each year. While the previous governor was in office, the state’s budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.

Which of the following, if true, would most seriously weaken the conclusion drawn above?

(A) The rate of inflation in the state averaged 10 percent each year during the previous governor’s term in office and 3 percent each year during Verdant’s term.
Higher inflation means less purchasing power and a weak currency value. Meaning more dollars will be needed to buy anything. Lower inflation means the same thing can be bought in less dollars. Example when inflation is 10 % a car would cost you 1000 dollar but when inflation is 3 % the same car would cost you 400 $. Now since inflation is reduced by 66% (3/10), the purchasing power of dollar has increased by 66%. so people can buy items by paying less money. So less money is buying more things. Now when you spend less obviously the market will receive less and hence the general situation will appear as a slowdown.
hence A is right.


(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
It's opposite. It strengthen. Low income tax means more money in hands. So people should have spend more money.


(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
Mildly Strengthening. If each year the budget spending is increasing then it means it started increasing the first year of verdant being elected. if verdant become governor in 2010 , the spending was more than 2009. But in 2009 there must be another governor in the office. so verdant actually performed better than him in first year and keep on performing better with each passing year. So by no means the lack of budget spending can be attributed to Verdant who is actually better than the earlier governor.

(D) During Verdant’s term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor’s term.
Strengthening. Two things are happening here. Earlier water was free, now its being charged. So people are spending. spending should increase
Earlier free health checkup was done. It is not done now; it's discontinued. So the cost of these free checkups should reflect in other ways in economies.

(E) During the previous governor’s term in office, the state introduced several so-called “austerity” budgets intended to reduce the growth in state spending.
Again strengthening. If there is a slowdown , its because of the decision of earlier governor and not because of verdant.

thanks
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Re: While Governor Verdant has been in office, the state s   [#permalink] 11 Jun 2016, 01:47

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