According to Say's Law,in the aggregate
A) demand creates its own supply
B) the production of output will generate exactly enough income to purchase what has been produced
C) the economy is incapable of producing output fast enough to ensure full employment
D) full employment cannot be sustained without government action
E) consumer saving prevents the economy from reaching full employment

Question

Quizplus · Accepted Answer

Say's Law states that production creates its own demand, meaning that the income generated from producing output will be enough to purchase all the output produced. In other words, there is no inherent unemployment or surplus in the economy since the act of producing output creates the income needed to purchase it. Therefore, choice B is the best answer.

According to Say's Law,in the Aggregate