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Mixed Economy There are three types of management in economies. An economy maybe almost totally planned, as it was in the Soviet Union. An economy may be almost totally unplanned, as it is in the USA Or an economy may be a combination of planning and freedom of operat ion. Examples of the latter are Japan and South Korea In a planned economy the government decides what goods are to be mass-produced and how they are to be marketed. Governments set all the priorities, and the producers are to follow the directions given to them. In a partially planned economy such as Japan's, the government often encourages industry and helps it with subsidies. The Government also makes investments and regulates the trade. The United States is an example of an unplanned economy. But it has a lot of government intervention in economic activity. As the economy of the United States grew, and as the government and its importance increased, the government policy at every level acquired greater importance for the economy. But the economy of the United States may be the so-called unplanned because the government does not regulate what will be mass-produced and how it will be marketed. These decisions are left to the producers. Even the great amount of government regulation that has emerged since the Great Depression has not turned the economy of the United States into a planned economy. The name of the American economic system is capitalism. Another name for it is the free market economy.
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