Economics Command Economy Questions
In a command economy, economic stability is typically handled through central planning and government control. The government determines the production levels, allocation of resources, and sets prices for goods and services. This allows for greater control over the economy and the ability to stabilize it by adjusting production and distribution according to the needs and goals of the government. However, this centralized control can also lead to inefficiencies, lack of innovation, and limited individual freedom in economic decision-making.