Which of the Following Occurs When There Was a Shortage

question 59

Multiple Choice

Which of the following occurs when there was a shortage of supply in a centrally planned economy?

• A)Central planners reduced the amount supplied to each sector
• B)Shoppers waited in long lines at retail stores
• C)Store shelves were empty
• D)Shop operators expected "tips" or bribes for supplying scarce consumer goods
• E)All of the answers are correct

---

Definitions:

New Deal Policies

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, aimed at restoring prosperity during the Great Depression.

Monetary Policy

The process by which a central bank, currency board, or monetary authority controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and trust in the currency.

Fiscal Policy

Government policies related to taxation and spending that aim to influence the economy, manage inflation, and stimulate economic growth.

Restrictive Fiscal Policy

Fiscal measures implemented by a government to reduce its spending and/or increase taxes with the aim of slowing down an overheating economy.