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Economics miscellaneous

  1. Say’s Law of Market holds that
    1. supply is not equal to demand
    2. supply creates its own demand
    3. demand creates its own supply
    4. supply is greater than demand
Correct Option: B

Say’s law, or the law of market, is an economic principle of classical economics named after the French businessman and economist Jean-Baptiste Say (1767–1832), who stated that “supply creates its own demand”. “Supply creates its own demand” is the formulation of Say’s law by John Maynard Keynes. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.



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