Shift in output composition during economic transition Steps:

• Identify the core change: Centrally planned economies focused on heavy industry and quotas, ignoring consumer demand.
• Recognize market transition effects: Price liberalization and demand revelation exposed mismatches in production.
• Evaluate immediate impacts: Excess supply of unwanted goods led to inventory pileups before reallocation.
• Compare options: Rule out long-term gains like exports or employment, focusing on short-term disruptions.

Why A is correct:

• In transitions (e.g., post-Soviet reforms), planned output didn't align with market signals, causing surplus goods to accumulate as unsold stocks per economic restructuring theory.

Why the others are wrong:

• B: Exports typically fell initially due to output contraction and lost COMECON markets.
• C: Employment decreased from factory closures and restructuring, leading to unemployment spikes.
• D: Prices rose sharply from subsidy removal and inflation, not decreased.

Final answer: A