The coordination problem in the centrally planned economies refers to the idea that:

A) planners had to direct required inputs to each enterprise.
B) the price level and the level of employment were inversely related.
C) the immediate effect of more investment was less consumption.
D) exports had to be equal to imports for a central plan to work.

Coordination Problem

A coordination problem occurs when parties involved in an economic activity struggle to choose their strategies in a manner that leads to an optimal outcome for all due to a lack of information or a misalignment of incentives.

Centrally Planned Economies

Economic systems where all production, investment, prices, and incomes are determined by the government or a central authority.