One implication of Say's Law is that:
A) inflation will always exist, as all goods in the economy will be purchased.
B) there is no recession, as all goods produced in the economy will be purchased.
C) unemployment will always persist.
D) there will always be a recession, as not all goods in the economy will be purchased.

Question

Quizplus · Accepted Answer

Say's Law states that supply creates its own demand, meaning that all goods produced in the economy will be purchased. Therefore, there is no recession as all goods are being bought and sold. However, this does not mean that there will be no unemployment or inflation, as those factors are influenced by other economic variables.

One Implication of Say's Law Is That