What is a planned economy?

World Economic Systems Questions



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What is a planned economy?

A planned economy is an economic system in which the government or a central authority controls and regulates all aspects of production, distribution, and consumption of goods and services. In a planned economy, the government determines what goods and services are produced, how they are produced, and how they are distributed among the population. This system is often associated with socialist or communist countries, where the government aims to achieve specific economic and social goals through centralized planning and allocation of resources.