QUESTION TEXT: If the economy is weak, then prices…
QUESTION TYPE: Must Be False
FACTS:
- Weak economy ➞ prices constant AND unemployment rises ➞ investment decreases.
- Investment is not decreasing.
(This lets us conclude:
Investment not decreasing ➞ unemployment not rising ➞ economy not weak.)
ANALYSIS: The economy must not be weak, since one of the necessary conditions (decreasing investment) is false.
We also know that unemployment is not rising.
We have no idea what prices are doing. All we know about them is that they are a necessary condition for a weak economy. But the economy is not weak.
The question is in a strange format. “Either this or that is true”. As long as one of them can be true, then the answer is not correct.
We need an answer that must be false, so both the “either this or that” must be false.
___________
- CORRECT. We know that investment is not decreasing. This means that unemployment is not rising and therefore the economy is not weak.
- If the economy is not weak, then we don’t know of any relation between prices and unemployment. So this could be true.
- This has to be true. It’s the conclusion we get from combining both sufficient-necessary statements.
- We know the economy isn’t weak. But we don’t know anything about prices is the economy isn’t weak, so they could stay constant.
- We know the economy isn’t weak, since investment is not decreasing.
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