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Admission Tests Graduate Management Admission Test GMAT Question # 45 Topic 6 Discussion

GMAT Exam Topic 6 Question 45 Discussion:
Question #: 45
Topic #: 6

Economist: In Nation X, the number of unsold homes on the market recently reached a twenty-year high. The last time the number of unsold homes was that high, a severe economic recession soon followed. Therefore, the nation's economy is almost certainly about to suffer another severe recession.

The economist's reasoning is most vulnerable to criticism on which of the following grounds?


A.

It confuses a claim about the number of unsold homes on the market with a more general claim about an overall economic recession.


B.

It overlooks the possibility that even if one phenomenon causally contributes to another, the latter sometimes, but not always, causally contributes to the former.


C.

It overlooks the possibility that other severe economic recessions In Nation X may have occurred when there were not an unusually large number of unsold homes on the market.


D.

It fails to address adequately the possibility that one phenomenon may closery follow another by coincidence.


E.

It fails to address adequately the possibility that a severe economic recession may itself cause more homes to remain on the market unsold.


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