Keynes' law is

Select all that apply:

a. the opposite of Say's law

b. the same as Say's law

c. consistent with the statement that supply creates demand

d. described by the statement that a lack of demand in the economy as a whole leads to inadequate incentives for firms to produce

Question

Business

Lester

13 July, 10:08

Keynes' law is

Select all that apply:

a. the opposite of Say's law

b. the same as Say's law

c. consistent with the statement that supply creates demand

d. described by the statement that a lack of demand in the economy as a whole leads to inadequate incentives for firms to produce

+2

Answers (1)

Know the Answer?

Callum Small · Answer 1

Answer: A; D

Explanation: The Keynesian perspective emphasizes the importance of aggregate demand for the short run and states that demand creates its own supply. Say's law emphasizes the importance of aggregate supply, for the long run and holds holds that supply creates its own demand. As a result, Keynes' law is the direct opposite of Say's law.

Keynes argued that economy often produced less than its full potential due to a lack of demand in the economy. This lack of demand as a whole leads to inadequate incentives for firms to increase production, that is, total demand determines the level of GDP.

Keynes' law isSelect all that apply:a. the opposite of Say's lawb. the same as Say's lawc. consistent with the statement that supply creates demandd. described by the statement that a lack of demand in the economy as a whole leads to inadequate incentives for firms to produce

Keynes' law is

Select all that apply:

a. the opposite of Say's law

b. the same as Say's law

c. consistent with the statement that supply creates demand

d. described by the statement that a lack of demand in the economy as a whole leads to inadequate incentives for firms to produce