INTRODUCTION TO ECONOMICS II (İKTİSADA GİRİŞ II) - (İNGİLİZCE) Dersi Equilibrium in the Economy soru detayı:

PAYLAŞ:

SORU:

Give an example that may cause the failure of Say's law.


CEVAP:

There may be some economic events that cause the failure of Say’s Law. For example, if the production factors want to save money rather than spend a portion of their income, then the all return from productions of the firms will not be expended. Therefore, the quantity demanded for goods and services will be lower than the quantity produced. In case of production or supply surplus, firms will decrease their production and start to lay their workers. This means that the economy diverges from the level of full employment.