The "No - Markets Fail Often" camp believes the long-run benefits of increased aggregate supply outweigh the short-run mismatches between reduced aggregate demand and aggregate supply.

Question

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The "No - Markets Fail Often" camp believes that markets do not always adjust smoothly and efficiently, leading to short-run mismatches between reduced aggregate demand and aggregate supply that can have negative economic consequences. They believe that these market failures can be significant and long-lasting, and may outweigh any benefits from increased aggregate supply in the long run.

The "No - Markets Fail Often" Camp Believes the Long-Run