PGDBA 2023 Question Paper | VARC

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Question 3 : The four sentences (labelled 1, 2, 3, 4) below, when properly sequenced, would yield a coherent paragraph. Decide on the proper sequencing of the order of the sentences and key in the sequence of the four numbers as your answer:
1. For example, the 2008-2009 U.S. recession triggered by the bursting of the subprime mortgage bubble was extremely severe.
2. However, while the economic downturn that technically began in December 2007 and ended in June 2009 was the longest in the U.S. since World War II, it only lasted about 18 months.
3. The major difference between a recession and a depression is that a depression is much more severe and long-lasting.
4. The U.S. unemployment rate nearly doubled from about 5% to 9.5% and the S&P 500 dropped by more than 50% from peak to trough.

Explanatory Answer

Of the given sentences, 3 is the most general one and hence the best opening sentence. All other statements relate to the 2008-2009 U.S. recession. As sentence 1 introduces this, 1 follows 3. 4 adds to 1 explaining the effect of the recession on the unemployment rate and S&P 500. Sentence 2 adds to the idea in the previous two sentences, stating that the recession only lasted 18 months. 3142 is the correct order.

The answer is '3, 1, 4, 2'

Choice B is the correct answer.

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