Question : The plan that mainly aims to coordinate both private and public investment and output plans through targets is called _______.
Option 1: indicative planning
Option 2: rolling plan
Option 3: decentralised planning
Option 4: centralised planning
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Correct Answer: indicative planning
Solution : The correct answer is indicative planning .
The plan that mainly aims to coordinate both private and public investment and output plans through targets is called indicative planning or targeted planning. In this type of planning, the government sets broad targets and goals for the overall development of the economy. Still, it allows a significant role for the private sector to achieve these objectives. This approach often contrasts with central or command planning, where the government has more direct control over the economy.
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