The origins of most shocks are external to the economy for the "Yes - Markets Self-Adjust" camp and internal to the economy for the "No - Markets Fail Often" camp.

Question

Quizplus · Accepted Answer

The "Yes - Markets Self-Adjust" camp generally believes that external shocks, such as changes in global demand or natural disasters, are the primary cause of economic downturns or recessions, while the "No - Markets Fail Often" camp tends to see internal factors, such as inadequate regulation or unequal distribution of wealth, as the main culprits.

The Origins of Most Shocks Are External to the Economy