Say's Law states that supply creates its own demand, meaning that as long as goods and services are produced, people will purchase them and the economy will remain in equilibrium. This concept is a fundamental principle of classical economics and is often used to support a laissez-faire approach to economic policy. None of the other options accurately state Say's Law.

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Say's Law States

Question 48

Multiple Choice

Say's Law states

A) spending on final products and services equals payments to input owners.
B) net taxes equal government spending.
C) supply creates its own demand.
D) aggregate spending equals aggregate income.
E) savings equals investment.

Correct Answer: