Need a help on answering (Book Question: 8)

The passage suggests that the phenomenon of combined unemployment and inflation is
A. a socioeconomic problem that can only be addressed by government intervention
B. a socioeconomic problem that can be characteristic of periods of structural unemployment
C. an economic problem that results from government intervention in management-labor relations
D. an economic problem that results from imperfect applications of technology
E. an economic problem that can be eliminated by relatively small changes in the labor force

I could not reach to choice B anyhow... please help which line can lead to this answer in last para

Thanks in advance!!

Clocked around 8 mins. Got Q 4 (Book Q 8) wrong

For me, choice B is from the following evidence:
This phenomenon may be an important factor in the rising trend, observed for the past two decades, of unemployment combined with inflation

in the passage, "this phenomenon" is that: Increased structural unemployment=>wages of shortage qualified workers are bid up, labor costs, and thus prices, rise.
the passage tell us that "this phenomena" is important factor to create a trend: "combined unemployment and inflation"
So this trend is characteristics of structural unemployment.
Analogy: people who have flu usually cough. So cough is a characteristic of flu.
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(Book Question: 10)
According to the passage, small downward shifts in the demand for labor will not usually cause unemployment because
A. such shifts are frequently accompanied by upswings in the economy
B. such shifts usually occur slowly
C. workers can be encouraged to move to where there are jobs
D. normal attrition is often sufficient to reduce the size of the work force
E. workers are usually flexible enough to learn new skills and switch to new jobs

In the above question, how is option D the correct answer? Can anyone explain? GMATNinja
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Hi I answered why D is correct in above post. Please refer it.
Now why B is not a good enough option:



Consider yourself CEO.
See this conversation:
Scenario D:
I (reporter) : Why aren't you giving pink slips to all employees (causing unemployment), given we have seen small downward shifts in demand for labor?
You: Because removing few people (normal attrition) is enough to tackle this small shift.

VS.

Scenario B:
I (reporter) : Why aren't you giving pink slips to all employees (causing unemployment), given we have seen small downward shifts in demand for labor?
You: Because the shift is occurring slowly.

Does it matter whether the demand lowers slowly or quickly? Passage says the small shift won't cause employment. Why? Because normal attrition is enough to counter these small shifts. Passage doesn't mention anything about how slowly or quickly the shift occurs and its effect on unemployment!


Hope I helped!

Hey!

Thank you so much for the complete explanations, I completely understand now.

It makes a lot of sense, I think I didn't get the meaning of the text correctly and that is why I got the wrong answer.

Also, the examples were perfect, thanks again!

Marina


Sent from my iPhone using GMAT Club Forum mobile app

Time taken 8 minutes. All correct! I think it's a 500 difficulty question because usually I am terrible at RC!
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P1 - wat is SU?
P2 - factors affecting SU + job loss is not bad. why?
P3 - effects of above thing

RC00144-03
All of the following are mentioned as ways of controlling the magnitude of structural unemployment EXCEPT

Workers can be encouraged to move where there are jobs, to reeducate or retrain themselves, or to retire. In addition, other factors affecting structural unemployment, such as capital movement, can be controlled.

A. using public funds to create jobs - correct; except this all are given in P2
B. teaching new skills to displaced workers -
C. allowing displaced workers to retire -
D. controlling the movement of capital -
E. encouraging workers to move to where jobs are available -

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RC00144-04
The passage suggests that a potential outcome of higher structural unemployment is
As the wages of those workers are bid up,
C. higher wages for those workers who have skills that are in demand - yes

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RC00144-05
It can be inferred from the passage that even when there are unemployed workers, labor shortages are still likely to occur if

If there is a growing pool of workers who lack the necessary skills for the available jobs, increases in total labor demand will rapidly generate shortages of qualified workers.

D. the jobs available in certain places require skills that the labor force in those areas lacks
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RC00144-06
The passage suggests that the phenomenon of combined unemployment and inflation is

This phenomenon may be an important factor in the rising trend, observed for the past two decades, of unemployment combined with inflation. Government policy has placed a priority on reducing inflation, but these efforts have nevertheless caused unemployment to increase.

A. a socioeconomic problem that can only be addressed by government intervention - too extreme, not sure if it can be addressed by that.
B. a socioeconomic problem that can be characteristic of periods of structural unemployment - unemployment and inflation can be characteristic of SU.
C. an economic problem that results from government intervention in management-labor relations - no
D. an economic problem that results from imperfect applications of technology - not always.
E. an economic problem that can be eliminated by relatively small changes in the labor force - not always.

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RC00144-07
The passage is primarily concerned with

A. clarifying the definition of a concept - p1
B. proposing a way to eliminate an undesirable condition - weak
C. discussing the sources and consequences of a problem - best of the lot.
D. suggesting ways to alleviate the effects of a particular social policy - no
E. evaluating the steps that have been taken to correct an imbalance - no

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RC00144-08
According to the passage, small downward shifts in the demand for labor will not usually cause unemployment because
In the individual firm or even in the labor market as a whole, normal attrition may be sufficient to reduce the size of the work force in the affected occupations.

D. normal attrition is often sufficient to reduce the size of the work force
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