How does a command economy handle unemployment?

Economics Command Economy Questions



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How does a command economy handle unemployment?

In a command economy, the government has control over the allocation of resources and the decision-making process. Therefore, the government can directly address unemployment by creating jobs and assigning individuals to work in specific sectors or industries. The government can also implement policies such as job guarantees or public works programs to ensure full employment. Additionally, the government can control wages and set minimum income levels to reduce unemployment rates.