Which of the Following Statements Is True About Say's Law

question 22

Multiple Choice

Which of the following statements is true about Say's law?

• A)It states that supply creates its own demand.
• B)It states that demand creates its own supply.
• C)It states that total output will always exceed total spending.
• D)It states that consumption spending is the most volatile component of aggregate expenditures.
• E)It is a major proposition of the Keynesian model.

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Definitions:

Maximizing Profits

The process or strategy employed by businesses to achieve the highest possible profit margins by optimizing production, sales, and pricing.

Payment to Labor

The compensation that workers receive in exchange for their labor, typically in the form of wages or salaries.

Derived Demand

The demand for one good or service that occurs as a result of the demand for another good or service, often because the goods are related as inputs to the production of another good or service.

Auto Workers

Individuals employed in the automobile industry, typically involved in the manufacturing, assembly, or design of vehicles.