Say's law implies that
A)surpluses never occur.
B)surpluses or shortages are possible, but only for a short time.
C)there will always be unemployment.
D)shortages never occur.

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand, meaning that as long as there is enough production, all goods and services produced will be consumed. However, this does not mean that surpluses or shortages cannot occur in the short term due to fluctuations in demand or unexpected events. Ultimately, the market will adjust to balance supply and demand. Therefore, choice B is the best answer.

Say's Law Implies That