Say's law implies that
A) consumers' willingness to spend is unrelated to the production of goods and services.
B) producing goods and services generates the means and the willingness to purchase other goods and services.
C) prices and wages are sticky upwards.
D) wages and prices are inflexible.

Question

Quizplus · Accepted Answer

Say's law implies that the production of goods and services generates the means and the willingness to purchase other goods and services. This means that supply creates its own demand. Therefore, producing more goods and services will lead to an increase in income and purchasing power, ultimately leading to increased demand for other goods and services.

Say's Law Implies That