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SajjadAhmad
Source: McGraw Hill GMAT

President: My opponents are arguing that my recent tax increase is responsible for our slumping economy. However, they are clearly mistaken. When their party was in power 12 years ago, they raised taxes and the economy did not suffer.

Which of the following, if true, casts the most doubt on the president’sassertion?

A. The current tax increase is smaller than the tax increase enacted 12 years ago.
this one adds even more confusion...if the increase is smaller..then shouldn't be unsatisfied people...

B. Over half the population supported the tax increase 12 years ago but only a third support the current increase.
who supports the increase is out of scope.

C. Most economic indicators show the current state of the economy to be similar to the state of the economy 12 years ago.
if it's similar, then there should not be any negative claims...

D. Twelve years ago a housing boom offset any negative impact the tax increase had on the economy.
aha..so twelve years ago, the tax increase was not felt as it is now...possible correct answer.

E. The president’s party has only been in power for two years after 12 years of opposition control of the government.
this clearly has nothing to do with the argument.


D seems to be the best answer.
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Official Explanation

Premise: A tax increase 12 years ago didn’t lead to an economic slump.

Conclusion: The president’s opponents are mistaken when they blame the economic slump on the tax increase.

This argument follows two common patterns. First, it assumes there is a causal connection between tax increases and the state of the economy. Second, the argument attempts to draw a comparison between the current situation and the situation 12 years ago. One way to attack an analogy argument is to show that the two things being compared are not similar.

Choice D does this by indicating that another factor offset the negative effects of the tax increase on the economy. Thus, it is more likely that the president’s opponents are correct.

Choice A is incorrect because the issue is whether the tax increase is hurting the economy, not the size of the increase.

Similarly, public support for the tax increase has nothing to do with its effect on the economy, so choice B is out of scope. Choice C strengthens the argument by indicating that economics conditions were the same 12 years ago. If conditions were the same and a tax increase didn’t hurt the economy, it’s likely that an increase now wouldn’t either.

Choice E is not within the scope of the argument because time in office is not at issue.

Answer: D
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