If Say's Law holds true, then if the economy produced $10 trillion this year:
A) production next year has to be larger than $10 trillion.
B) the demand for goods and services must be less than $10 trillion.
C) the demand for goods and services also equals $10 trillion.
D) production next year has to be smaller than $10 trillion.

Question

Quizplus · Accepted Answer

Say's Law states that supply creates its own demand. Therefore, if the economy produced $10 trillion this year, it is assumed that the supply will create an equal demand for goods and services, also equaling $10 trillion.

If Say's Law Holds True, Then If the Economy Produced