Say's Law is the claim that the aggregate value of goods and services produced necessarily:
A. increases over time.
B. will decrease over time.
C. creates a smaller value of aggregate demand for those goods.
D. creates an equal value of aggregate demand for those goods.
Answer: D
You might also like to view...
The components of aggregate expenditure are consumption expenditure,
A) investment, government expenditure on goods and services, and net exports. B) investment, government expenditure on goods and services, and net taxes. C) interest, government expenditure on goods and services, and net exports. D) investment, government expenditure on goods and services, and net income. E) interest, gross spending, and net spending.
If an emissions tax is imposed but it is less than the optimal Pigouvian tax, then:
a. the marginal social benefit of pollution is greater than the marginal social cost of pollution. b. the marginal social cost of pollution is greater than the marginal social benefit of pollution. c. total surplus will be maximized. d. the amount of pollution will be less than the socially optimal amount.