Between Say's Law and Keynes' Law, which describes economic growth in the short run? In particular, why does one of these basic philosophies have trouble explaining short-run recessions like the Great Recession of the late 2000s?
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This implies that there can never be a general overproduction or oversupply in the economy. However, in the short run, this may not hold true as there can be periods of insufficient demand leading to recessions. Show more…
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