The implication of Say's law is that
A) Gross Domestic Product is the same whether we use the expenditure approach or the income approach.
B) a barter economy is the most efficient economy.
C) increased consumption today leads to increased production tomorrow.
D) overproduction in a market economy is not possible.

Question

Quizplus · Accepted Answer

Say's Law, often summarized as "supply creates its own demand," implies that overproduction (or general gluts) in a market economy is not possible because everything produced will eventually be matched by demand. This is because the act of producing goods generates income, which in turn is used to demand other goods.

The Implication of Say's Law Is That