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Chapter 24: Q 18. (page 601)

Do neoclassical economists believe in Keynes’ law or Say’s law?

Short Answer

Expert verified

They believe in say's law.

Step by step solution

01

Step 1. Definition

Say’s law is a classical economic theory that says that the source of spending that generate demand to purchase current production is simply the income generated by past production and goods sale.

02

Step 2. Explanation

Neoclassical economists are the economists who stressed the importance of aggregate supply in ascertaining the macroeconomy in the long run.

So neoclassical economists are the believer of say’s law because they think that supply creates its own demand.

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