It can be both. Government can decide (on behalf of the citizens) to shut down the economy, and yet let all the economic actors to deal with the consequences of

It can be both. Government can decide (on behalf of the citizens) to shut down the economy, and yet let all the economic actors to deal with the consequences of that decision on their own. So while I agree that free market plays a role, I interpret the line to say that there is also a central decision of the government that organizes all this.