[Solved] Statement: "The government reduced fuel taxes to control inflation."Assumptions:1️⃣ Fuel prices influence inflation levels.2️⃣ Lowering taxes will automatically stabilize the economy.... | Reasoning Ability

Reasoning Ability - Statement & Assumption

Statement: "The government reduced fuel taxes to control inflation."
Assumptions:
1️⃣ Fuel prices influence inflation levels.
2️⃣ Lowering taxes will automatically stabilize the economy.
Which assumption(s) is/are implicit?

AOnly 1

BBoth 1 and 2

COnly 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Note the macro aim
The move links tax policy to inflation control.
Step 2: Test assumptions
Assumption 1 — fuel prices affect inflation — implicit. Assumption 2 — that lowering taxes alone will automatically stabilize the entire economy — is overstated and not implied.
Final Answer:
Only 1 is implicit. → Option A
Quick Check:
Macroeconomic measures usually assume partial influence, not total control ✅

Quick Trick: Don’t read sweeping economic efficacy into a specific measure.

Common Mistakes:

Assuming single-policy fixes for complex problems.

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Which assumption(s) is/are implicit?

Step 1: Note the macro aim

Step 2: Test assumptions

Final Answer:

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