Several phases occur throughout a typical cycle of economic populism. Indicate the usual order in which the following phases take place. Populist governments begin a program of "reactivation, redistribution, and restructuring." In this program, macroeconomic constraints of budgets and foreign exchange are ignored and budget deficits are run up. Inflation can become severe while the use of the government budget to stimulate production leads to large deficits. Capital begins to flee the country as everyone anticipates that the policies are not sustainable and that the currency will be devalued. There is widespread disillusionment with current policy, often as a result of a recession or a period of very slow growth Growth leads to imports and trade deficits and the beginning of bottlenecks in the economy as shortages develop. Policymakers often raise wages and freeze prices as part of the redistribution package, Prices begin to rise in spite of the attempts to freeze Why do economic populism policies leave its supporters worse off than before the cycle begins? A. Any increase in wages falls behind the increase in prices and wage eamers lose ground. B. Capital flight and the perception that policies are unsustainable depress Investment, which reduces growth and real wages. OC. A and C only OD. Extremely high rates of inflation cause wage earners to give up all their gains. them E. All of the above.