Question

A mixed economy to solve its central problems relies on _______.

• A. economic planning
• B. price mechanism
• C. price fixing
• D. both 'a' and 'b'

Answer 1

The correct option is D both 'a' and 'b'

In mixed type economy (like India),in order to determine the equilibrium price and quantity in the market, free play of demand and supply forces takes place ,together with this government also intervenes in order to keep a check on inflationary and deflationary gap in an economy through certain fiscal and monetary policies.