Which of the following statements is true about Say's law?
A)It states that supply creates its own demand.
B)It states that demand creates its own supply.
C)It states that total output will always exceed total spending.
D)It states that consumption spending is the most volatile component of aggregate expenditures.
E)It is a major proposition of the Keynesian model.

Question

Quizplus · Accepted Answer

Say's law posits that supply creates its own demand, meaning that the production of goods and services generates an equivalent amount of demand in the economy.

Which of the Following Statements Is True About Say's Law