Economic problems under the provisional government continued

Question 1

How did the provisional government attempt to deal with rising inflation?

Answer 1

-state monopoly on the purchase of grain to keep supplies flowing and prices stable.

Question 2

Why did the state monopoly on the purchase of grain fail?

Answer 2

-peasants refused to sell their grain at prices offered because it was better to feed livestock or themselves
-largest profits from transporters
-price of manufactured goods too high-no point selling

Question 3

What happened to the value of the rouble?

Answer 3

-fell to 10% of what it was worth.
-wages increased but couldn’t keep up
-traders refused money- system based on bartering.

Question 4

What were the main signs that the economy was totally collapsing?

Answer 4

-starvation
-production of war materials fell
-army could not fight
-1/4 of trains out of order
-land grabs
-firms having to close- no raw materials, orders/ wages.

Question 5

How did the peasants react to the failing economic situation?

Answer 5

-seized land
-farm equipment
-stocks of timber and hay

Question 6

What did the government attempt to do to try and stop the seizure of land?

Answer 6

-Government warned peasants not to take it into their own hands.

Question 7

What fraction of trains were out of order?

Answer 7

1/4

Question 8

What did the percent of a rouble fall to?

Answer 8

10% of what it was.