Say's Law

Related BrainMass Solutions

• GDP components

  Components of GDP in the output (expenditures) approach and in the income approach; investment demand curve; Say's law; Keynesian theory

• Production Concept

  Step 2 The production concept has been summarized in Say's law which says that supply creates its own demand. The first issue that Smith will face will be that there must be demand for the lawnmowers that Smith produces.

• Keynesian Economics

  In a reversal of Say's Law, Keynes in essence argued that "demand creates its own supply," up to the limit set by full employment."

• Determining Equilibrium Real GDP and the Price Level

  Known as Say's law, it states that the wages and profits paid out during the production of goods are equal to the total sum required to buy them, and that therefore they can always be sold, in a type of barter system.

• Keynesian approach to managing the macro-economy

  Say's law further expounded on this, stating that recession does not occur because of failure in demand or lack of money.

• Impact of the war on a nation's economy.

  Remember to consider how the basic economic equation is manipulated by Keynesian economics: C + I + G + XN For the classical economist's point of view, remember the two basic theories of classical economics: Say's law and Price-wage flexibility.

• Keynesian versus classical policies

  Say's law further expounded on this, stating that recession does not occur because of failure in demand or lack of money.

• Keynesian theory, supply side economics and monetary policy

  On the other hand Say's law that gave the crux of the supply side economics said that supply created its own demand.

• Policies for combating recession

  Say's law further expounded on this, stating that recession does not occur because of failure in demand or lack of money.