Say's Law States that: a. prices will adjust so that firms sell all of their merchandise...
Say's Law States that:
a. prices will adjust so that firms sell all of their merchandise
b. aggregate demand equals aggregate supply
c. demand creates its own supply
d. Supply creates its own demand
Homework Answers
The correct option for this question is D) Supply creates it's own demand.
In classical Economics, Say's law does states that supply creates it's own demand.
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Say's Law States that:
a. prices will adjust so that firms sell all of their
merchandise...
(3 Marks) Say's Law states that supply creates its own demand. What does this mean?
(3 Marks) Say's Law states that supply creates its own demand. What does this mean?
Say's Law: Supply creates its own demand; implies there cannot be insufficient aggregate demand or demand...
Say's Law: Supply creates its own demand; implies there cannot be insufficient aggregate demand or demand caused recessions True False
Which of the following explain how classical economists argued that Say's law holds? Check all that...
Which of the following explain how classical economists argued that Say's law holds? Check all that apply. Although there may be temporary unemployment caused by short periods in which wages and prices adjust, in the long run, aggregate production creates aggregate income that, in turn, allows people to purchase the goods and services being produced. Demand can be forever inadequate for an economy to reach full employment. Markets eliminate persistent shortages and surpluses. Grade It Now Save & Continue Continue...
1.) According to Say’s law, a given value of supply must create Select the correct answer...
1.) According to Say’s law, a given value of supply must create Select the correct answer below: an abundance of wealth for the economy's agents further increases in the supply of the inputs to production a decrease in the demand for the product an equivalent value of demand somewhere else in the economy 2.) Keynes' law is Select all that apply: the opposite of Say's law the same as Say's law consistent with the statement that supply creates demand described...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates rise, so firms decrease investment. c. Interest rates fall, so firms increase investment. d. Interest rates fall, so firms decrease investment. 44. Which of the following shifts money demand to the left? a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate 45. If the world real interest rate exceeds the Canadian real interest...
Which of the following statements would be inconsistent with Say's law?
Which of the following statements would be inconsistent with Say's law? A given value of supply must create an equivalent value of demand in the economy The economy has flexible prices and wages. The best way to foster an economy is through government stimulus spendingThe country of Botalava hired Gustav to assist with government policies regarding the macroeconomy. Gustav is a neoclassical economist and makes all decisions based on that economic philosophy. What policies will Gustavo tell the government to enact in order...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
In the Keynesian zone of the aggregate supply curve, how is Keynes’ law, where demand creates...
In the Keynesian zone of the aggregate supply curve, how is Keynes’ law, where demand creates its own supply, illustrated? Prices change relatively little with an increasing aggregate demand, but that changing demand does effectively increase aggregate outputs because of the excess capacity in the economy. Because the economy is closer to full output, aggregate demand either increasing or decreasing has a large effect on prices and little effect on aggregate supply. Prices remain relatively static and outputs remain unchanged...
The "law of supply" states that, other things remaining the same, firms produce A. less of...
The "law of supply" states that, other things remaining the same, firms produce A. less of a good as profits rise. B. more of a good as costs of production rise. C. less of a good as average incomes fall. D. more of a good as the price of the good rises, 12 If a 3 percent increase in price of Nike golf balls leads to a 42 percent decrease in quantity demanded of Nike golf balls, then the demand...
Which of the following explain how classical economists argued that Say's law holds? Check all that apply. Although there may be temporary unemployment caused by short periods in which wages and prices adjust, in the long run, aggregate production creates aggregate income that, in turn, allows people to purchase the goods and services being produced. Demand can be forever inadequate for an economy to reach full employment. Markets eliminate persistent shortages and surpluses. Grade It Now Save & Continue Continue...
Which of the following statements would be inconsistent with Say's law? A given value of supply must create an equivalent value of demand in the economy The economy has flexible prices and wages. The best way to foster an economy is through government stimulus spendingThe country of Botalava hired Gustav to assist with government policies regarding the macroeconomy. Gustav is a neoclassical economist and makes all decisions based on that economic philosophy. What policies will Gustavo tell the government to enact in order...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
The "law of supply" states that, other things remaining the same, firms produce A. less of a good as profits rise. B. more of a good as costs of production rise. C. less of a good as average incomes fall. D. more of a good as the price of the good rises, 12 If a 3 percent increase in price of Nike golf balls leads to a 42 percent decrease in quantity demanded of Nike golf balls, then the demand...
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