Which of the following is NOT true according to Say's law?
A) Supply creates its own demand.
B) No overproduction is possible in a market economy in the long run.
C) Desired expenditures will always be higher than actual expenditures.
D) Producing goods and services generates the means and the willingness to purchase other goods and services.

Question

Quizplus · Accepted Answer

Say's law states that supply creates its own demand and that overproduction is not possible in the long run. Producing goods and services generates the means and willingness to purchase other goods and services. However, it does not necessarily mean that desired expenditures will always be higher than actual expenditures. In fact, in a market economy, actual expenditures are determined by the level of supply and demand, which can vary depending on different factors such as consumer preferences, economic conditions, and government policies.

Which of the Following Is NOT True According to Say's