INTER WAR YEARS 1919 TO 1939
COLLAPSE OF THE SOVIET UNION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ending the arms race with the US
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Allowing for open elections
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Glasnost (political openness)
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Shock Therapy
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Detailed explanation-1: -Shock therapy policies generally include ending price controls, stopping government subsidies, privatizing state-owned industries, and tighter fiscal policies, such as higher tax rates and lowered government spending.
Detailed explanation-2: -The then President of Soviet Union Mikhail Gorbachev came up with two policies: Glasnost and Perestroika.
Detailed explanation-3: -Russia’s and east European countries’ economies were devastated by shock therapy. The ruble, the Russian currency, has lost a lot of value. Because of the high rate of inflation, people lost all of their money. People lost their food security as the community farms dissolved.
Detailed explanation-4: -Characteristics of shock therapy include the ending of price controls, the privatization of publicly-owned entities, and trade liberalization. The opposite of shock therapy, gradualism, indicates a slow and steady transition from a controlled economy to an open economy.