GWD-24 Q10

alannesta

Is it possible to decrease

inflation without causing a reces-

sion and its concomitant increase

line in unemployment? The orthodox

(5)answer is “no.” whether they

support the “inertia” theory of

inflation (that today’s inflation rate

is caused by yesterday’s infla-

tion, the state of the economic

(10) cycle, and external influences

such as import prices) or the

“rational expectations” theory

(that inflation is caused by

workers’ and employers’ expec-

(15) tations, coupled with a lack of

credible monetary and fiscal

policies), most economists

agree that tight monetary and

fiscal policies, which cause

(20) recessions, are necessary to

decelerate inflation. They point

out that in the 1980’s, many

European countries and the

United States conquered high

(25) (by these countries’ standards)

inflation, but only by applying tight

monetary and fiscal policies that

sharply increased unemployment.

Nevertheless, some govern-

(30) ments’ policymakers insist that

direct controls on wages and

prices, without tight monetary and

fiscal policies, can succeed in

decreasing inflation. Unfortu-

(35) nately, because this approach

fails to deal with the underlying

causes of inflation, wage and

price controls eventually col-

lapse, the hitherto-repressed

(40) inflation resurfaces, and in the

meantime, though the policy-

makers succeed in avoiding a

recession, a frozen structure of

relative prices imposes distor-

(45) tions that do damage to the

economy’s prospects for long-

term growth.

24-10 The passage suggests that the high inflation in the United States
and many European countries in the 1980’s differed from inflation elsewhere in which of the following ways?
A) It fit the rational expectations theory of inflation but not the inertia theory of inflation.

B) It was possible to control without causing a recession.

C) It was easier to control in those countries by applying tight monetary and fiscal policies than it would have been elsewhere.

D) It was not caused by workers’ and employers’ expectations.

E) It would not necessarily be considered high elsewhere.

by these countries’ standards

为什么通过“by these countries’ standards”就可以推出E？？