Which of the following is true of Say's law?
A) There is often a lack of sufficient demand for goods and services.
B) There can never be excess production above demand for any length of time.
C) The economy is naturally prone to severe booms and busts.
D) There is a constant danger of runaway inflation.

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand, meaning that as long as goods and services are produced, there will always be enough demand to purchase them. Therefore, there can never be excess production above demand for any length of time.

Which of the Following Is True of Say's Law