Following the 2008 financial crisis, economists have debated whether market recovery patterns typically follow a rapid rebound model—where economies q...
GMAT Information and Ideas : (Ideas) Questions
Following the 2008 financial crisis, economists have debated whether market recovery patterns typically follow a rapid rebound model—where economies quickly return to pre-crisis performance levels—or a prolonged adjustment model characterized by extended periods of gradual improvement. Economists Maria Chen and Robert Thompson recently analyzed employment data, consumer spending patterns, and business investment trends from fifteen post-crisis economies. Based on their comprehensive analysis, Chen and Thompson concluded that the rapid rebound model better explains typical recovery patterns.
Which finding from their analysis, if true, would most directly support Chen and Thompson's conclusion?
The recoveries they studied showed similar patterns regardless of the initial crisis severity.
Most economies experienced volatile fluctuations between rapid growth and stagnation phases.
Employment levels and consumer confidence demonstrated sharp upward trends within 12-18 months rather than steady incremental improvements.
The recovery mechanisms could be attributed to either government intervention policies or natural market corrections.
Step 1: Decode and Map the Passage
Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "Following the 2008 financial crisis, economists have debated whether market recovery patterns typically follow a rapid rebound model—where economies quickly return to pre-crisis performance levels—or a prolonged adjustment model characterized by extended periods of gradual improvement." |
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| "Economists Maria Chen and Robert Thompson recently analyzed employment data, consumer spending patterns, and business investment trends from fifteen post-crisis economies." |
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| "Based on their comprehensive analysis, Chen and Thompson concluded that the rapid rebound model better explains typical recovery patterns." |
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Provide Passage Architecture & Core Elements
Main Point: Chen and Thompson's analysis of post-crisis economic data supports the rapid rebound model over the prolonged adjustment model for explaining typical recovery patterns.
Argument Flow: The passage establishes two competing theories about economic recovery patterns, introduces specific research by Chen and Thompson analyzing multiple economic indicators across fifteen economies, and concludes with their finding that supports the rapid rebound model over the gradual adjustment model.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- Since Chen and Thompson concluded that the rapid rebound model (quick return to pre-crisis levels) better explains recovery patterns than the prolonged adjustment model (gradual improvement), the supporting evidence should show economic indicators recovering quickly rather than slowly
- Evidence should demonstrate sharp, significant improvements rather than steady, incremental ones
The recoveries they studied showed similar patterns regardless of the initial crisis severity.
✗ Incorrect
- This finding about similar patterns regardless of crisis severity doesn't address the speed of recovery
- It tells us about consistency across different situations but not whether recoveries were rapid or gradual
Most economies experienced volatile fluctuations between rapid growth and stagnation phases.
✗ Incorrect
- Volatile fluctuations between rapid growth and stagnation suggests instability and inconsistency
- This contradicts the idea of a consistent rapid rebound pattern
Employment levels and consumer confidence demonstrated sharp upward trends within 12-18 months rather than steady incremental improvements.
✓ Correct
- Shows employment and consumer confidence had sharp upward trends within 12-18 months - this demonstrates rapid recovery
- Explicitly contrasts this with steady incremental improvements - directly opposing the prolonged adjustment model
- The timeframe and description perfectly match what we'd expect for rapid rebound evidence
The recovery mechanisms could be attributed to either government intervention policies or natural market corrections.
✗ Incorrect
- Information about what caused the recoveries doesn't address whether they were rapid or gradual
- The speed and pattern of recovery is what distinguishes the two models, not the underlying mechanisms