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What do you mean by 'supply creates its own demand'?
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What do you mean by 'supply creates its own demand'?
Supply creates its own demand" is the formulation of Say's law. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money and a central tenet of Keynesian economics.
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Read the report given below and answer the questions that follow:In an economy the Aggregate Demand is determined by consumption, Government Expenditure and Net Exports in the economy. This is affected by the Savings and Investment in the economy. The Multiplier, that is investment multiplier, which is influenced by the ratio of total consumption and total income, regulates the flow of money in the economy influencing the Aggregate Demand and Supply. Any change in any of the factors leads to a big change in the economy’s equilibrium as a whole. It is to be kept in mind that the economy needs to be in equilibrium condition. When savings is less than the investments the aggregate demand is more than the aggregate supply, and vice versa.What happens when the Investment is lesser than Savings?

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What do you mean by 'supply creates its own demand'?
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What do you mean by 'supply creates its own demand'? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about What do you mean by 'supply creates its own demand'? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What do you mean by 'supply creates its own demand'?.
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