Say's Law refers to the concept that:
a. increases in aggregate demand create unionization.
b. demand creates its own supply
c. supply creates its own demand.
d. flexible wages affect price levels.
c
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Suppose the value of the price elasticity of supply is 4. What does this mean?
A) For every $1 increase in price, quantity supplied increases by 4 units. B) A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent. C) A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent. D) A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6
Indicate whether the statement is true or false
Entry into a monopolistic competitive industry
A) is easy. B) is hard. C) requires governmental approval. D) requires collusion.
Market-oriented solutions to externalities rarely work.
A. True B. False C. Uncertain