What law says that supply creates its own demand?

Say’s law
Say’s law states that supply creates its own demand. Many mainstream economists take a Keynesian perspective—emphasizing the importance of aggregate demand—for the short run and a neoclassical perspective—emphasizing the importance of aggregate supply—for the long run.

Who creates his own demand according to the market rules of JB Say?

Jean Baptiste Say, a classical French economist, studied the nature of markets in his 1803 book “Treatise on Political Economy” and put forth the view that supply creates its own demand and that economic agents must first engage in production before they can demand goods and services in the market.

What did Jean Baptiste Say believe?

Jean-Baptiste Say was a French classical liberal political economist who greatly influenced neoclassical economic thought. He argued strongly in favor of competition, free trade, and lifting restraints on business.

What did John Maynard Keynes believe in?

British economist John Maynard Keynes believed that classical economic theory did not provide a way to end depressions. He argued that uncertainty caused individuals and businesses to stop spending and investing, and government must step in and spend money to get the economy back on track.

What is Keynes law?

Keynes’ Law states that demand creates its own supply; changes in aggregate demand cause changes in real GDP and employment. The neoclassical zone occurs at the right of the SRAS curve where it is fairly vertical, so movements in aggregate demand will affect the price level but have little impact on output.

Who has advocated law of demand?

Alfred Marshall. After Smith’s 1776 publication, the field of economics developed rapidly, and the law of supply and demand was refined. In 1890, Alfred Marshall’s Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium.

Who is the main critic of Prof JB says market laws?

Say’s law of market is based on the proposition that “supply creates its own demand”. Therefore, there cannot be general overproduction and mass unemployment. Keynes has criticized this proposition and propounded the opposite view that demand creates its own supply.

Who is a businessman according to Jean-Baptiste Say?

Jean-Baptiste Say, a French economist who first coined the word entrepreneur in about 1800, said: “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.” One dictionary says an entrepreneur is “one who undertakes an enterprise, especially a …

Where did Jean-Baptiste Say study?

Say completed his education at a private school in Croydon (a township in South London) after which he was employed by a merchant in London. After said merchant died, Say returned to France and started working a life insurance company under the directorship of Etienne Clavière.