According to Say's law,there can be
A) neither a general overproduction nor a general underproduction of goods.
B) a general overproduction but not a general underproduction of goods.
C) a general underproduction but not a general overproduction of goods.
D) both a general overproduction and a general underproduction of goods.

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand. This means that if all goods produced are sold in the market, the income generated from selling those goods will be used to purchase other goods and services, leading to a balanced economy without general overproduction or underproduction. Therefore, option A is the correct choice.

According to Say's Law,there Can Be