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) secular deflation.

Question

Quizplus · Accepted Answer

Say's law, named after economist Jean-Baptiste Say, states that supply creates its own demand. In other words, the production of goods and services will generate the income and willingness to purchase other goods and services, leading to a continuous cycle of economic activity. This idea is in contrast to the idea of a demand-driven economy, which suggests that demand must be stimulated for economic growth to occur. Say's law is a foundation of classical economic theory.

The Concept That Producing Goods and Services Generates the Means