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

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

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27 Mar 2009, 04:04
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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.
[Reveal] Spoiler: OA

Last edited by JarvisR on 27 Jun 2015, 00:39, edited 1 time in total.
OA updated

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

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27 Mar 2009, 04:30
is it E?
you have to show
something else and not the the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.
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Re: While Governor Verdant has been in office, the state s [#permalink]

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27 Mar 2009, 05:54
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I would go with A.

Conclusion: Budget caused slowdown
Premise: budget was low when Governor Verdant was in office.

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.
- inflation was low therefore budget was low. Therefore low budget is not the real cause of slowdown rather inflation might the cause.
(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
- But it is not clear what happened under the reign of Governor Verdant
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Re: While Governor Verdant has been in office, the state s [#permalink]

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27 Mar 2009, 05:57
It should be B, question is to weaken argument and so another cause which results of slowdown in state spending.

Can you confirm?

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

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27 Mar 2009, 09:06
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Expert's post
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.
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Re: While Governor Verdant has been in office, the state s [#permalink]

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28 Mar 2009, 02:36
yes OA is A.
Source: CR1000

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

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28 Mar 2009, 02:46
C is according to the passage.
B and D are in line with the budget.
It was between A and E.

A seems the more convincing answer.

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

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31 Mar 2009, 14:46
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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.

thanks

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31 Mar 2009, 16:33
Conclusion: The austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.

Premise: 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

If you look at the argument, it stands out as a very weak argument. Just because the budget has increased by a lesser percentage, it cannot be concluded that the reduction has caused slowdown. So weakening an already weak argument is fairly easy.

(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.
OOS - Inflation is not talked about in the argument
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
OOS -There is no mention of income tax in the argument
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
Does not affect the conclusion
(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.
Perfect - This shows that the reduction in budget is because of the increased spending on citizen services which were offered free of cost in the previous budget.
(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.
Does not affect the conclusion.

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01 Apr 2009, 05:38
B ? OA?

D >> If they started charging for services which were earlier free then budget should increase and not decrease.
B >> some other factors like lowering of tax rates were responsible for lower budget this year.

pbanavara wrote:
Conclusion: The austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.

Premise: 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

If you look at the argument, it stands out as a very weak argument. Just because the budget has increased by a lesser percentage, it cannot be concluded that the reduction has caused slowdown. So weakening an already weak argument is fairly easy.

(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.
OOS - Inflation is not talked about in the argument
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
OOS -There is no mention of income tax in the argument
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
Does not affect the conclusion
(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.
Perfect - This shows that the reduction in budget is because of the increased spending on citizen services which were offered free of cost in the previous budget.
(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.
Does not affect the conclusion.

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01 Apr 2009, 14:13
OA is A. but don't have OE.

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07 Apr 2009, 23:05
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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.

B) is incorrect as taxes are not the only source of state funding (bonds etc), and reduced taxes should spur business, not hinder it.
C) does not consider inflationary effects (but hints at answer)
D) concerns where money is raised, not how it is spent. Burden of paying for services moved from general levy (tax) to specific levy (fees) and hence does not concern spending. If services had been moved to private sector would be a valid 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.

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12 Apr 2009, 19:12

Karlsyf said it.

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13 Apr 2009, 22:54
(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. – out of the lot this gives the reason to weaken the argument.
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office. – out of scope
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.- states the same info given in the para.
(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. – private citizens is out of scope
(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. – in that case the spending should have been reduced and not increased, Contrary to info given.

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15 Apr 2009, 22:34
A and B are OOS
C doesnt argue against the fact that the austere budget reduced spending
D strengthens the argument by saying the austere budget reduced government spending

E works because it wekens the idea of austere budgets being the cause of reduced spending

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17 Apr 2009, 12:53
i think, in this ques A is better option than B, but B is also a very good option.
if A were not in the question, B would have been the best choice according to me.

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17 Apr 2009, 22:59
A.

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

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04 Jun 2009, 21:49
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While Governor Verdant has been in office, the states budget has increased by an average of 6 percent each year. While the previous governor was in office, the states budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdants 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 governors term in office and 3 percent each year during Verdants term.

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

(C) In each year of Verdants term in office, the states budget has shown some increase in spending over the previous year.

(D) During Verdants 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 governors term.

(E) During the previous governors term in office, the state introduced several so-called austerity budgets intended to reduce the growth in state spending.

Can anyone help me in the same?

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

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04 Jun 2009, 22:09
I think the answer should be E

(A) The rate of inflation in the state averaged 10 percent each year during the previous governors term in office and 3 percent each year during Verdants term. - Strengthens the argument

(B) Both federal and state income tax rates have been lowered considerably during Verdants term in office. - Out of scope

(C) In each year of Verdants term in office, the states budget has shown some increase in spending over the previous year.- Out of scope

(D) During Verdants 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 governors term.- Out of scope

(E) During the previous governors term in office, the state introduced several so-called austerity budgets intended to reduce the growth in state spending. - weakens the argument by providing an alternate reason for slowdown. Based on this one can say that the slowdown might has happened due to previous governors policies.
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Re: While Governor Verdant has been in office, the states budget [#permalink]

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04 Jun 2009, 22:31
Answer as per 1000 SC is A.

as per one of the explaination on net
http://www.beatthegmat.com/state-s-budg ... 12655.html

In India, right now the rate of inflation is 11.05%. the highest is last 13yrs.
following r the main reasons, as cited by the experts:
1)high import oil prices.
2)big farm loan waiver by the government (close to Rs71000 crore - an election gimmick).
3)high GDP growth.
4)depreciting rupee .........etc.
so if the inflation is down, in some cases it will allow the government to have extra funds to spend on the states, if it wants to.in such cases A will actually strengthen the argument.

so u see it depends upon what the scenario is. there is nothing mentioned in the passage about the rate of inflation.
hence A is out of scope.

Thanks!

yeah i saw that in newpaper today ...... and reasons given by you are true....

BUT, you forgot to mention a very important reason .... India's growth .... In any economy one of the main reasons for hight inflation is high growth rate...

so coming back to our question..... if we take option A, some portion of less growth can be attributed to less infaltion (10 to 3). So its not entirley Mr Verdant's fault .....

BTW the question is from 1000CR and the OA is A.... 8)

Do u think Inflation has something to do with state spending ...???

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Re: While Governor Verdant has been in office, the states budget   [#permalink] 04 Jun 2009, 22:31

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