The "No - Markets Fail Often" camp argues that
A) interest rates are more important than expectations for business investment decisions.
B) most shocks are external to the economy.
C) demand shocks are more important than supply shocks for explaining business cycles.
D) business expectations are rational.
E) government is part of the problem of business cycles.

Question

Quizplus · Accepted Answer

The "No - Markets Fail Often" camp typically emphasizes the role of demand shocks in causing business cycles, arguing that markets do not always self-correct efficiently and that external interventions may be necessary.

The "No - Markets Fail Often" Camp Argues That