Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — Structural adjustment is a gradual multi-step process, while stabilization is a quick adaptation process
Concept & Option Breakdown
Standard Reference VerifiedThe New Economic Policy (1991) comprised two distinct components:
- Stabilization measures: Short-term, immediate actions aimed at correcting the balance-of-payments crisis, controlling inflation, and rebuilding foreign exchange reserves.
- Structural adjustment programs: Medium-to-long term, gradual, multi-stage reforms designed to improve economic efficiency, competitiveness, and resource allocation through trade liberalization, deregulation, and privatization.
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