- PowerScore Staff
- Posts: 1045
- Joined: Oct 19, 2022
- Thu Jul 31, 2025 8:10 am
#113779
Hi lsatloverrrrr,
For Resolve the Paradox questions, you're looking for an answer that explains both parts/sides of the paradox. In this question, one side is that consumers increase their spending at the beginning of periods of inflation, but later reduce their spending even though inflation is still happening (and therefore consumers would presumably still have the same motive to increase spending before prices get even higher). We need an answer that explains the difference between these two behaviors when it seems like the situation and the consumers' motives would be the same for each based on the stimulus.
Answer E does this by explaining how purchasing power decreases during period of protracted inflation. This explains why consumers reduce their spending later but do not need to reduce their spending at the beginning of a period of inflation since their purchasing power has not really decreased yet.
Answer C does not do this. This vague statement that generalizations don't apply to every human behavior doesn't really explain what is going on in the facts in the stimulus. After reading Answer C, we still don't really understand why consumers are behaving this way.
For Resolve the Paradox questions, you're looking for an answer that explains both parts/sides of the paradox. In this question, one side is that consumers increase their spending at the beginning of periods of inflation, but later reduce their spending even though inflation is still happening (and therefore consumers would presumably still have the same motive to increase spending before prices get even higher). We need an answer that explains the difference between these two behaviors when it seems like the situation and the consumers' motives would be the same for each based on the stimulus.
Answer E does this by explaining how purchasing power decreases during period of protracted inflation. This explains why consumers reduce their spending later but do not need to reduce their spending at the beginning of a period of inflation since their purchasing power has not really decreased yet.
Answer C does not do this. This vague statement that generalizations don't apply to every human behavior doesn't really explain what is going on in the facts in the stimulus. After reading Answer C, we still don't really understand why consumers are behaving this way.