Social Sciences and History / Unit 15 SSH 1406 short lesson, about 20 seconds
Say's Law and Keynes's Law
Captions available
The idea
Say's law, the neoclassical emphasis, holds that supply creates its own demand. Keynes's law holds that demand creates its own supply. Many mainstream economists take the Keynesian view for the short run and the neoclassical view for the long run.
In practice
Two laws, two horizons.
Where people slip
Aggregate demand is total spending; aggregate supply, total output firms will sell.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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