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The economist Jean-Baptiste Say is associated with a law summarized in shorthand as which statement?
ADemand creates its own supply
BSupply creates its own demand
CPrices always clear instantly
DSpending always crowds out debt
Answer & Solution
Correct answer: B. Supply creates its own demand
1. Say's law is named for the French economist Jean-Baptiste Say.
2. The law is shorthand for the idea that producing and selling a good generates income equal to its value somewhere in the economy.
3. That income becomes demand, so in this view supply is the driver and demand follows along.
4. Option A states the opposite view, which is Keynes' law, not Say's law.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 10 "The Aggregate Demand/Aggregate Supply Model", section 10.1 | Macroeconomic Perspectives on Demand and Supply_
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