Principles of Macroeconomics / Unit 8 MAC 0701 short lesson, about 20 seconds
Say's Law and Keynes' Law
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The idea
Say's law says supply creates its own demand, because producing generates the income to buy the output. Keynes' law says demand creates its own supply.
In practice
In the Great Depression the workers, machines and knowledge were all still there.
Where people slip
Neither man wrote the slogan attached to his name, and each law fits a horizon: Keynes the short run, Say the long run.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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