ABSTRACT
The length of the growth cycle under statism is based mainly on the construction time and gestation period of new investment. A new wave of investment causes excess demand and shortages on the supply side. The period of reduced growth lasts until the new investment is completed; it is usually completed only after the forced slowdown on further investment has made supplies available. Central planning has thus meant full employment, high rates of investment, and plentiful funds for basic research. The Soviet Union has a centrally planned economy, controlled by a self-chosen group of leaders. In a pure centrally planned economy, all prices, outputs, and choices of technology would be decided by central planners under the direction of the government. In fact, many Soviet decisions are made at the regional level, in lower economic agencies, or at the enterprise level.
