This should be a writer's opinion
That is because it might differ based on who was talking. Some might disagree that it has become run-down, or some might say that it has become such way before "just recently".
This statement is true - a compound subject is indeed one that contains two or more simple subjects.
Answer:
The shah developed Western policies
Citizens of Iran protested government
Ayatollah Khomeini came to power
Traditional laws were reinstated
