There are command economies, which you would find in a Dictatorship or true monarchy, free economies, which you would find in Democracies or Republics, there is the mixed economy, Which is what we have, and finally there is the traditional economy which describes tribal and agricultural economies.
Pure Economics addresses this question.
Applied Economics A+
macroeconomic
macroeconomic
Macroeconomics
Economics
cheat
microeconomics
Type of financial
Microeconomics
Regardless of the type of government, Politics and Economics have a 'chicken & egg' relationship. While politics sets the rules and laws that enable economics to succeed, business (economics) tells the politicians what works, what doesn't work, and what they want to maintain profitability.
Supply-side Economics