Say's law in classical economics suggests that, over a period of time:
A) Aggregate spending would tend to exceed total output and income
B) Aggregate spending would tend to fall short of total output and income
C) Aggregate spending would tend to equal total output and income
D) Aggregate spending would tend to deviate from total output and income

Question

Quizplus · Accepted Answer

Say's law suggests that total output and income must generate enough income to purchase all the goods and services produced. Therefore, aggregate spending must tend to equal total output and income in the long run. This is also known as the "law of markets" or "supply creates its own demand."

Say's Law in Classical Economics Suggests That, Over a Period