[Solved] Statement: "Economists predict that inflation will decrease in the coming financial year."Assumptions:1️⃣ Prices will stabilize due to stronger supply chains.... | Reasoning Ability

Reasoning Ability - Statement & Assumption

Statement: "Economists predict that inflation will decrease in the coming financial year."
Assumptions:
1️⃣ Prices will stabilize due to stronger supply chains.
2️⃣ No major external shocks will disrupt economic stability.
Which assumption(s) is/are implicit?

AOnly 1

BBoth 1 and 2

COnly 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Identify the forecast
The prediction that inflation will decrease implies confidence in domestic control and external stability.
Step 2: Analyze assumptions
Assumption 1 — stronger supply chains stabilise prices — implicit. Assumption 2 — absence of major external shocks — implicit because such shocks would invalidate the forecast.
Final Answer:
Both 1 and 2 are implicit. → Option B
Quick Check:
If global instability or weak supply chains existed, inflation would not likely decrease ✅

Quick Trick: Positive macro forecasts need both internal recovery and external calm.

Common Mistakes:

Ignoring external shocks when assessing forecasts.

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Which assumption(s) is/are implicit?

Step 1: Identify the forecast

Step 2: Analyze assumptions

Final Answer:

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