Your friend is a business owner in a planned economy. In a few sentences, explain how central authority impacts his business.

Answer with Explanation:

A "Centrally Planned Economy" refers to an economy where the government's authority affects the economic decisions of the business owners. This means that the business owners and the consumers do not have a say when it comes to their decisions regarding the supply and demand of the items.

This also means that the business owner cannot decide on what product he will be producing, including its process of production and distribution.

Additional Explanation:

Although the command economy signals a lack of freedom for business owners, it has some advantages as well. It results to low unemployment level. The government has the ability to set the number of workers that the business owners will hire in order to address the unemployment rate. Products and services that will be produced are all directed for the good of the people. It is not "profit-driven."

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d. automatic stabilizers.

explanation: