According to Say's Law,
A) whatever is produced would create the income necessary to purchase that production
B) the government should intervene in the economy to combat a recession but not inflation
C) downward adjustments in wages would guarantee that everyone who wanted a job will have a job
D) to clear the market of any excess supply, firms would be willing to accept price reductions

Question

Quizplus · Accepted Answer

Say's Law posits that supply creates its own demand, meaning that whatever is produced in an economy will generate the income necessary to purchase all the goods and services produced, assuming no government intervention and flexible prices.