The plan that mainly aims to coordinate both, private and public investment and output plans through targets is called _______.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. indicative planning.
Indicative planning involves the government setting broad targets and guidelines for economic development, influencing both private and public sectors through persuasion and policy rather than direct control. It aims to coordinate investment and output by providing a framework and information, allowing market forces to largely determine outcomes while steering them towards national goals.
Rolling plan: A plan where targets are revised and a new annual plan is added each year, maintaining a fixed planning horizon.
Decentralised planning: Planning where decisions are made at regional or local levels with greater participation from various stakeholders.
Centralised planning: Planning where all major economic decisions regarding resource allocation and production are made by a central authority.