Answer:
A & D is the correct answer. If it's wrong, i'm sry. lol :D
An implicit agreement among the members of a society to cooperate for social benefits, for example by sacrificing some individual freedom for state protection. Theories of a social contract became popular in the 16th, 17th, and 18th centuries among theorists such as Thomas Hobbes, John Locke, and Jean-Jacques Rousseau, as a means of explaining the origin of government and the obligations of subjects.
<u>Answer:</u>
<em>Using Fiscal policy is the best way to fight the recession of the country.</em>
<u>Explanation:</u>
<em>It involves the acts of government like, increasing the government spending, making the interest rate as low as possible and encouraging the investors.</em>
This tactics of applying the fiscal policy helps the country in increasing the GDP and fight against the recession.
Government should apply monetary policy when the economy of the country is in boom because it may cause inflation.
<em>Privatization and reduction in money supply helps in controlling the inflation.</em>
Answer:
To put a little bit of context:
'Shock Therapy' in this question refers to the rapid transition between communism into Market-Based economy that Poland did as soon as they got free from Soviet Union.
At that time, the mismanagement that Communist regime did caused an economic Slump in Poland. They made the government obtain control on all aspect of economy, leaving little freedom for the citizens to actually pursue their own interest. But, since the communism ideology was implemented for a long time, people's perception of what a working economy should be were heavily clouded.
The fast transition to a more liberalized economy was aimed to revitalized Poland's economy as soon as possible. They want to produce different types of Goods and Services to fulfill the citizens' need along with exporting some of those products to compete in international market.
