The "Yes - Markets Self-Adjust" camp worries that fiscal policies increasing aggregate supply cause aggregate demand recessions whose costs outweigh the long-run benefits of economic growth.

Question

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The "Yes - Markets Self-Adjust" camp typically believes in the self-correcting nature of markets without the need for government intervention. They argue that markets, through mechanisms like price adjustments, can correct imbalances between supply and demand on their own. Concerns about fiscal policies causing aggregate demand recessions are more characteristic of those skeptical about market self-adjustment and wary of the potential negative impacts of such policies on economic stability.

The "Yes - Markets Self-Adjust" Camp Worries That Fiscal Policies