The government of a centrally planned economy decides to replace central planning with a market system.
What does the experience of the former Communist states suggest is likely to happen in the early stages of the transition process to national output and to the inflation rate?
1 )
national output: decrease / nflation rate: decrease
national output: decrease / nflation rate: increase
3 )
national output: increase / nflation rate: increase
4 )
national output: increase / nflation rate: decrease
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