The concept that producing goods and services generates the means and the willingness to purchase other goods and services is
A)the Keynesian approach.
B)money illusion.
C)Say's law.
D)cost-push inflation.

Question

Quizplus · Accepted Answer

Say's law, also known as the law of markets, states that the production of goods and services generates a level of income that creates the demand for those goods and services. In other words, supply creates its own demand. This concept forms the basis of classical economics and counters the idea of a demand-constrained economy, where the lack of demand leads to lower economic activity.

The Concept That Producing Goods and Services Generates the Means