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# While Governor Verdant has been in office, the state s

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Re: While Governor Verdant has been in office, the states budget [#permalink]

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04 Jun 2009, 23:00
1
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ya, may be "state spending" is directly effected by "inflation". If inflation increases, prices will increase and "state spending" will slowdown.

But, if we take it other way, if "state spending" slows down, prices will fall, inflation will decrease (this is what is happening currently across globe).

So if inflation is lower during Verdant's period, is it due to slowdown in "state spending" or is it due to his policies ? confusing ?

I think this argument has been written before the recent global meltdown
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Re: While Governor Verdant has been in office, the states budget [#permalink]

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04 Jun 2009, 23:33
imo, the answer shud be A.

The argument states that governor verdant has given austere budgets which caused slowdown in the state's budget.

and option A says that the rate of inflation was low when compared to rate of inflation in previous terms.. hence more budget is not necessary.. inturn means no slow down in govt spending..

for example,

when rate of inflation is 10 %, laying a road will cost you 110.-->budget 110
when rate of inflation is 3%, laying the same road will cost you only 103. --> budget 106. ( surplus )

hence verdant didnt actually slowdown govt expenditure.. when the rate of inflation is considered.

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Re: While Governor Verdant has been in office, the states budget [#permalink]

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07 Jun 2009, 11:00
I'm with A too as the point of inflation clearly weakens the Austerity aspect.

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

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28 Oct 2009, 00:22
IanStewart wrote:
ritula 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.

This doesn't strike me as a particularly realistic GMAT question, because it requires you to make assumptions about what an 'austere budget' might be. Still, C is consistent with the passage, so it's not right. B and D both support the conclusion - they are examples of 'austere' budget measures that may have led to a decline in state spending. E also supports the conclusion - if the previous governor introduced austerity budgets and still saw an 11% increase in spending, how austere must Verdant's budgets have been to bring that down to 6%?

A should be the right answer here - the previous governor's spending barely kept pace with inflation, while Verdant increased spending at twice the rate of inflation. In real dollar terms, then, Verdant was increasing spending faster than the previous governor. The conclusion is unwarranted; state spending hasn't really slowed down at all.

Nice explanation. It clears out all of my queries

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

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28 Oct 2009, 06:59
A clearly shows inflation caused higher budget rather than higher budget caused slowdown in spending.

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

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13 Nov 2009, 18:23
Choice A. The passage fails to take into account the influence inflation had on the previous governor's spending figures.
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Re: austere budgets [#permalink]

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24 Feb 2010, 08:12
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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.
Seems to be right. Expenses have slow down since prices are linked to inflation.

(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
Actually, out of scope, because it introduced Federal Tax which has nothing to do with State Budget
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
In line with the premises
(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.
Cant be since it is actually strengthening the argument, some of state expenses have been passed onto Citizens
(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.
Out of Scope
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Re: austere budgets [#permalink]

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24 Feb 2010, 11:48
A should be the answer

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Re: austere budgets [#permalink]

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24 Feb 2010, 12:13
kumarp256 wrote:
pls explain. please let me know if already discussed. source-1000CR

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. So the actual budget increase during the term of Verdant is 3% while the actual budget increase during the term of the previous governor is only 1.5 percent. So, governor Verdant’s term have caused the increase in state spending. A is the perfect answer
(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.

[Reveal] Spoiler: OA
A

thanks

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Re: austere budgets [#permalink]

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24 Feb 2010, 12:34
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A is the answer:

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.

It states the the reason the new govenor is spending at a lower rate is because inflation is lower therefore cost are rising at a slower rate. Thus spending hasn't increase because prices have not increased. This means he is spending the same but prices have not risen so his expenses hasn't risen. This is directly related to spending.

(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.

This ask you to link the outside idea that lower taxes means less spending and thus is outsie the scope of the arguement.

(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.

This is given in the paragraph. He had 6% increase on avarage. Does not weaken.

(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.

This supports the arguement.

(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.

This is close but no cigar. If this statement included "which were expected to not effect the growth of state spending till sometime in the future" it would have been a stonger candidate. However it does not directly erode at the assumption that the new govenor is responsible for the reduced spending.
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Re: austere budgets [#permalink]

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24 Feb 2010, 23:51
wow, i got this one right. I was just looking for a clear reason explaining reduced budget.

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

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24 Apr 2010, 13:08
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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.
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Re: Governor Verdant [#permalink]

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24 Apr 2010, 14:28
E IMO.
The so-called “austerity” introduced by the previous governor caused the slowdown.

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Re: Governor Verdant [#permalink]

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25 Apr 2010, 10:44
IMO E

Only option that weaken the conclusion. most others are out of scope
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Re: Governor Verdant [#permalink]

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25 Apr 2010, 11:40
IMO A.

If there is less inflation then there is no point of budget expansion.
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Re: Governor Verdant [#permalink]

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26 Apr 2010, 09:29
It is A.
I browsed through for the answer. OA is A.

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Re: Governor Verdant [#permalink]

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26 Apr 2010, 09:57
Can you give the explanation aswell why is it A
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Re: Governor Verdant [#permalink]

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26 Apr 2010, 11:23
it is (A)

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.

The conclusion is that during Governor Verdabt's term there has been slowdown in state spending.

What would weaken this conclusion....meaning we have to find an option which will prove that there was no slowdown in state spending during Governor Verdant's gterm

Option (A) says that the rate of inflation was 10% during previous governor and 3% during Verdant's term....means the actual spending during previous governor's term was 10 - 11.5 = 1.5% and the actual spending during Governor Verdant's term was 3 - 6 = 3%...which clearly shows that actually there has been increase in the actual state spending during Governor Verdant's term....thereby weakening the conclusion.

Hope that helps.

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Re: austere budgets [#permalink]

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01 Mar 2011, 10:02
Definitely A.

The conclusion states that austere budgets caused the slowdown in growth of state budget but if the real growth of state budget in recent yr has been 6-3=3 % as opposed to 11.5-10=1.5%, there has not been any slowdown in growth !

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Re: austere budgets [#permalink]

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01 Mar 2011, 10:24
the argument is that the small budget has slowed down spending.

weakening the argument is based on showing that the % numbers dont mean very much with regard to the spending.

if you know that 10% inflation was under the previous gov then real spending was only 1.5%, if the current gov has 6% spending but only 3% inflation, then there is 3% real spending....you are weaking the argument by showing that there actually isnt any slowing down. Real spending actually doubled.

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Re: austere budgets   [#permalink] 01 Mar 2011, 10:24

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# While Governor Verdant has been in office, the state s

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