Question

what is planned economy

Answer 1

Planned economy states for the economy which is first imagined that is it suitable and sustainable

Answer 2

In a planned economy the State or Govt guides the planning process. It may be imperative or indicative planning. In Communist countries most of the economic activities are undertaken by the State and come under imperative planning. The private sector is almost non-existent in these countries. But in countries where factors of production like agriculture and industries are in private hands, the planning process adopted is indicative only. Here the economy is mixed, where both govt and private sectors exist simultaneously.