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In the YouTube documentary entitled, Commanding Heights - The Agony of Change, that Professor Torres asked the students to watch, what was shock therapy. This

In the YouTube documentary entitled, "Commanding Heights - The Agony of Change," that Professor Torres asked the students to watch, what was "shock therapy." This economic tool was dreamed up by economists to stimulate the economies of developing countries that were suffering from both high inflation and unemployment. Multiple Choice Shock therapy is a plan to allow the government to control and guide the economy. Shock therapy is a plan to increase the value of the national currency by allowing domestic interest rates to rise. Shock therapy takes an economy controlled by the government and immediately converts it to a free market & free trade economy by eliminating government subsidies, by severely cutting government spending, cutting the massive printing of money, and eliminating all price controls. Shock therapy is based on Keynesian economic theory which calls for the government to combat both unemployment and inflation by printing more money and creating massive government projects to hire people

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