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Read the sentences and choose the option that best arranges them in a logical order.
i. All it has to do is to drive up the inflation rate-examples are the damage Lyndon Johnson’s inflationary policies did to the US economy and the damage which consistently pro-inflationary policies have done to the economy of Italy.
ii.It is easy, the record shows, for a government to do harm to its domestic economy.
iii.Contrary to what economists confidently promised forty years ago, business cycles have not been abolished.
iv.They still operate pretty much the way they have been operating for the past 150 years
v.But there is not the slightest evidence that any government policy to stimulate the economy has impact, whether that policy be Keynesian, monetarist, supply - side or neoclassical.
We can see that the (ii)-(i) and (iii)-(iv) are two mandatory pairs. Sentence (v) comes either immediately after (i) or before (ii).
This makes only A or E feasible. Option A cannot be a desirable sequence because it positions (ii) (which talks about Govt. actions) immediately after (iv) (which talks about business cycles staying the same). This is not a smooth idea flow.
In comparison, option E makes a good switch from the ideas of (iii)-(iv) to the impact of Govt. actions. Hence, the answer.
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