Complete Question Explanation
Point at Issue. The correct answer choice is (A)
In the dialogue presented in this stimulus, Constance states that the traditional definition of full employment is an unemployment rate of 5%, and that a rate lower than 5% will result in a rise in inflation.
Brigita claims that the traditional definition of full employment is no longer applicable because it was developed before the rise of temporary and part-time work and the fall in benefit levels. Because some people have to work several part-time jobs or work in a series of temporary assignments, Brigita argues, one cannot consider 5% unemployment to be full employment.
The question stem asks which of the answer choices reflects an issue on which the two speakers would disagree with one another. In prephrasing an answer, we should note that Constance and Brigita seem to disagree about what constitutes full employment. Constance believes that full employment is achieved when the unemployment rate is 5%; Brigita believes that this definition of full employment is outdated.
Answer choice (A): This is the correct answer choice. This choice reflects the prephrased answer above, stating that Constance and Brigita disagree about what definition of full employment is applicable under present economic conditions.
Answer choice (B): The dialogue surrounds the applicability of the traditional definition of full employment, but Constance and Brigita do not get into a policy based argument about what level of unemployment is a “good idea,” so this answer choice is incorrect.
Answer choice (C): Since Constance never even mentions the proper categorization for a part time worker, there is no way to conclude that this would be a point of contention between the two speakers.
Answer choice (D): While this answer choice reflects Brigita’s assertion, Constance never weighs in on this issue, and because we cannot presume disagreement based on the information provided in the stimulus, this answer choice must be eliminated.
Answer choice (E): It is known that Constance believes that an unemployment rate below 5% will cause inflation to rise, but no assertion is made by either speaker regarding the effects of a higher unemployment rate on inflation.