Final answer:
False, Aggregate planning is typically for an intermediate-term of 3 to 18 months, not up to five years. It involves adjustments to meet demand, while long-term planning may include more extensive actions like building new factories. The statement given is, therefore, false.
Step-by-step explanation:
The statement that aggregate planning is long-range production planning covering periods up to five years is false. Aggregate planning typically refers to intermediate-term planning of 3 to 18 months and involves adjusting production rates, labor levels, inventory levels, overtime work, subcontracting rates, etc., to meet the demand of goods and services. Long-term planning, on the other hand, covers a longer period of several years and may include actions such as building new facilities or investing in new technologies.
Producers of goods and services find it easier to expand production over the long term of several years as it allows for more significant changes, such as the construction of new factories or the hiring of many new workers. This contrasts with short-term planning, which is restricted by the ability to quickly alter production levels without incurring high costs or disruptions.
Additionally, government's role in setting economic plans can also vary based on their time frames and types of governance. For example, authoritarian governments may engage in longer-term planning, as seen in the historical context of the Five-Year Plans adopted by the Soviet Union.