During their thorough 2020 study, economists Patricia Chen and David Rodriguez argued that quantitative easing strategies warranted ongoing applicatio...
GMAT Information and Ideas : (Ideas) Questions
During their thorough 2020 study, economists Patricia Chen and David Rodriguez argued that quantitative easing strategies warranted ongoing application even without definitive empirical support, contending that the lack of conclusive evidence opposing these monetary policies justified pursuing theoretical investigation. Contemporary Federal Reserve information spanning 2021-2023, nonetheless, reveals that quantitative easing generated inflation trends and asset valuation disruptions that correspond exactly with traditional monetary theory's forecasts regarding surplus liquidity infusion, offering persuasive evidence challenging the efficacy of these policies.
Which choice best states the main idea of the text?
Federal Reserve monetary information gathering was deliberately structured to assess the theoretical findings advanced by Chen and Rodriguez.
Chen and Rodriguez's analytical approach presumed that quantifiable inflation consequences from quantitative easing would stay unobservable.
Prior to 2021, economists' emphasis on abstract monetary frameworks hindered the creation of sufficient data gathering mechanisms for assessing policy results.
While Chen and Rodriguez possessed valid justification for endorsing quantitative easing prior to the recent information becoming accessible, the Federal Reserve discoveries indicate their policy reasoning has been weakened.
Step 1: Decode and Map the Passage
Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| 'During their thorough 2020 study, economists Patricia Chen and David Rodriguez argued that quantitative easing strategies warranted ongoing application even without definitive empirical support,' |
|
| 'contending that the lack of conclusive evidence opposing these monetary policies justified pursuing theoretical investigation.' |
|
| 'Contemporary Federal Reserve information spanning 2021-2023, nonetheless, reveals that quantitative easing generated inflation trends and asset valuation disruptions' |
|
| 'that correspond exactly with traditional monetary theory's forecasts regarding surplus liquidity infusion,' |
|
| 'offering persuasive evidence challenging the efficacy of these policies.' |
|
Main Point: While Chen and Rodriguez had reasonable justification for supporting quantitative easing policies in 2020, subsequent Federal Reserve data has provided compelling evidence that challenges their position.
Step 2: Interpret the Question Precisely
What's being asked? What is the main idea of the entire text - the overarching theme that captures both the economists' position and the contrasting Federal Reserve findings.
What type of answer do we need? A main idea that captures the contrast between Chen and Rodriguez's position and the Federal Reserve findings.
Any limiting keywords? None specified.
Step 3: Prethink the Answer
- The correct answer needs to capture the contrast between Chen and Rodriguez's position and the Federal Reserve findings
- It should show that their original reasoning was understandable given the information available at the time
- New evidence has challenged their position
Federal Reserve monetary information gathering was deliberately structured to assess the theoretical findings advanced by Chen and Rodriguez.
- Claims Federal Reserve information gathering was structured to assess Chen and Rodriguez's findings
- Passage never suggests the Federal Reserve data was collected specifically to evaluate their work
Chen and Rodriguez's analytical approach presumed that quantifiable inflation consequences from quantitative easing would stay unobservable.
- Says Chen and Rodriguez assumed inflation effects would remain unobservable
- Passage doesn't indicate they made assumptions about observability of inflation
Prior to 2021, economists' emphasis on abstract monetary frameworks hindered the creation of sufficient data gathering mechanisms for assessing policy results.
- Claims economists before 2021 emphasized abstract frameworks that hindered data gathering
- Passage doesn't discuss general economist practices before 2021
While Chen and Rodriguez possessed valid justification for endorsing quantitative easing prior to the recent information becoming accessible, the Federal Reserve discoveries indicate their policy reasoning has been weakened.
- Acknowledges Chen and Rodriguez had valid justification for their position given available information in 2020
- Recognizes that Federal Reserve discoveries from 2021-2023 have weakened their policy reasoning
- This captures the complete argument structure