In the classical model,when an open economy has balanced trade,Say's law holds.

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According to the classical model, when an open economy has balanced trade, Say's law holds. Say's law states that supply creates its own demand, meaning that all goods and services produced in the economy will eventually be consumed. In an open economy with balanced trade, exports equal imports, and therefore total production is equal to total consumption, which is consistent with Say's law.

In the Classical Model,when an Open Economy Has Balanced Trade,Say's