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In a planned system, the three basic questions are answered through some form of central planning. In the former Union of Soviet Socialist Republics (USSR), the state central planning authority was called Gosplan. Its function was to identify what goods and services were needed by the people, how these goods and services would be produced and how the state output would be distributed.
It takes a considerable imagination to understand the complexity of such a task. Needless to say, it involved huge numbers of people involved in the planning process - bureaucrats shuffling paper and directing operations...
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