What is Say’s Law? How does it relate to the view held by classical economists that the economy generally will operate at a position on its production possibilities curve (Chapter 1)? Use production possibilities analysis to demonstrate Keynes’ view on this matter.
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According to this law, in order to demand goods and services, one must first contribute to the supply of goods and services. In other words, one's ability to demand something is defined by what one produces and supplies to the market. Classical economists, who Show more…
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