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alisha [4.7K]
4 years ago
13

The inflationary spiral explains the causes and effects of high inflation. The spiral usually begins with a rise in production c

osts. What is the direct effect?
Social Studies
1 answer:
stellarik [79]4 years ago
3 0
The direct effect of the inflationary spiral would be in the value of the goods, as the production cost rises the output generated by the production will surely be more expensive added by the value overhead and shipping cost in which the end consumer will be most affected.
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The United States government was initially hostile to the Soviet leaders for taking Russia out of World War I and was opposed to a state ideologically based on communism. Although the United States embarked on a famine relief program in the Soviet Union in the early 1920s and American businessmen established commercial ties there during the period of the New Economic Policy (1921–29), the two countries did not establish diplomatic relations until 1933. By that time, the totalitarian nature of Joseph Stalin's regime presented an insurmountable obstacle to friendly relations with the West. Although World War II brought the two countries into alliance, based on the common aim of defeating Nazi Germany, the Soviet Union's aggressive, antidemocratic policy toward Eastern Europe had created tensions even before the war ended.

The Soviet Union and the United States stayed far apart during the next three decades of superpower conflict and the nuclear and missile arms race. Beginning in the early 1970s, the Soviet regime proclaimed a policy of détente and sought increased economic cooperation and disarmament negotiations with the West. However, the Soviet stance on human rights and its invasion of Afghanistan in 1979 created new tensions between the two countries. These tensions continued to exist until the dramatic democratic changes of 1989–91 led to the collapse during this past year of the Communist system and opened the way for an unprecedented new friendship between the United States and Russia, as well as the other new nations of the former Soviet Union.

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