PT28.S1.Q20 - Economy, Unemployment, Investment

extramediumextramedium Alum Member

Hi could someone help me out with the diagramming on this one? I found it absolutely confounding and I'm usually pretty decent at conditional phrasing.

So what I took away from this after looking at this thoroughly was that the original logic chain is something to the effect of:

P1: EW (Weak Economy) -> PRC (Prices Remain Constant) and UR (Unemployment Rises)
P2: UR -> ID (Investment Decreases)
P3: /ID

What I got from this was: EW-> PRC
-> UR -> ID

Arrow in the second line after the blank is supposed to symbolize the "and." (And is split after, Or is split before)

From there: /ID ->/UR ->/EW

PRC seems irrelevant now since you've already failed part of the "and". Sufficient (EW) is already failed by /UR, therefore PRC floats. It can do whatever.

How do we get from /ID ->/UR ->/EW

to /EW -> ID must be false

Not sure how this is correct. Obviously, since we know ID is stated in the stimulus, this must be true. Then it says EW, which we know not to be true.

Similarly, with D, we know that the economy is not weak, must be true, but prices remaining constant, I have no idea how this figures in.

Same thing with E. Either unemployment is rising, and we know that it isn't, or the economy is not weak, which also must be true. We know both of these must be true. Still not sure how this translates into an either...or statement.

What am I missing here? Is it something to with the either...or statements?

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