Here the subject is “surge” which is singular and so I feel “suggests” should be used rather than suggest. But the OA says “suggest”.
“A surge in new home sales and a drop in weekly unemployment claims suggest that the economy might not be as weak as some analysts previously thought.
A. claims suggest that the economy might not be as weak as some analysts previously thought
B. claims suggests that the economy might not be so weak as some analysts have previously Thought
C. claims suggest that the economy might not be as weak as have been previously thought by some analysts
D. claims, suggesting about the economy that it might not be so weak as previously thought by some analysts
E. claims, suggesting the economy might not be as weak as previously thought to be by some Analysts”
Here ‘a surge’ and ‘a drop’ is there, hence it is plural.