Economics • Economic BasicsEasy
Which economic law famously states that 'Supply creates its own demand', serving as a core foundation for classical macroeconomics?
A. Say's Law✓ Correct Answer
B. Gresham's Law
C. Walras's Law
D. Okun's Law
💡 Solution & Explanation
Say's Law of Markets posits that aggregate production inherently generates an equivalent amount of income and demand, forming a cornerstone of classical macroeconomic theory. Alternative principles like Gresham's law address currency circulation rather than general market equilibrium.
More Economics Economic Basics questions
- Which of the following describes 'Moral Hazard' in information economics?
- What does the 'Heckscher-Ohlin Model' in international trade theory identify as the fundamental determinant…
- In the context of international trade theory, what does the Heckscher-Ohlin model primarily attribute…
- How does structural unemployment fundamentally manifest in a developing labor market?
- In examining the structural dynamics of Haryana's state income accounts, economists evaluate the divergence…