The Transition to a Market-Oriented Economy Characterized by Rising Unemployment

Multiple Choice

The transition to a market-oriented economy characterized by rising unemployment and higher prices suggests that

A) government must continue to centrally plan all resource allocations to production.
B) a social safety net including unemployment compensation, and food, clothing, and housing subsidies for those in need will be politically popular.
C) government must set wages, prices, and interest rates.
D) government must continue to centrally plan the distribution of all output into consumption.