When aggregate supply and aggregate demand match, that equilibrium is the world of Say's Law.

Question

Quizplus · Accepted Answer

Say's Law states that supply creates its own demand. When aggregate supply and aggregate demand match, it means that all goods and services produced are being purchased by consumers, indicating that there is no general oversupply or undersupply of goods in the economy. This equilibrium is in line with Say's Law.

When Aggregate Supply and Aggregate Demand Match, That Equilibrium Is