Question

What do you mean by shock therapy? And what are it's consequences​

Answer 1

Answer:

What is Shock Therapy

Shock therapy is a financial theory that believes that sudden and dramatic change in national economic policy can turn a state-controlled economy into a free-market one. The name, shock therapy refers to the concept of quite literally shocking, or shaking up, the economy, with sudden and dramatic economic policies that affect prices and employment.

Consequences:

Creating a swift and sufficient income inequality

Rise in unemployment

Economic overwhelm

A more efficient method to solve economic imbalances

Set clear expectations for consumers