Say's Law

question 60

Multiple Choice

Say's Law

• A) is valid only in a simple economy without financial markets
• B) led economists during the 1920s to encourage the government to adopt flawed economic policies that led to the Great Depression
• C) assures us that in the aggregate,firms are able to sell their output so that full employment can be sustained
• D) tells us that in the long run,markets clear
• E) tell us that firms must carefully monitor consumer spending and saving in order not to produce more than consumers are willing to purchase

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Definitions:

Capital Stock

Represents the equity or ownership sections of a corporation divided into shares.

Opening Balance Equity

An account used in accounting software to offset discrepancies when establishing opening balances during the initial setup of the financial records.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, considered an asset on the balance sheet.

Supplies On Hand

The inventory of materials and goods currently available in a business for use or sale.