The "Yes - Markets Self-Adjust" camp
A) focuses on the short-run.
B) believes in Say's Law.
C) believes the economy's self-adjusting mechanisms are slow.
D) believes business cycles happen regularly.
E) does all of the above.

Question

Quizplus · Accepted Answer

The "Yes - Markets Self-Adjust" camp believes in Say's Law, which states that supply creates its own demand and that any imbalances in the economy will eventually self-correct. This belief tends to focus on the long-run, rather than the short-run, and implies that the economy's self-adjusting mechanisms are relatively quick. Additionally, this camp would argue that business cycles are a natural and regular part of the economy's adjustment process. Therefore, options A, C, and D are incorrect.

The "Yes - Markets Self-Adjust" Camp