Discuss the contribution of Jean Baptiste Say to the classical theory of economic growth

      

Discuss the contribution of Jean Baptiste Say to the classical theory of economic growth

  

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Dana
Jean Baptiste Say, in his arguments known as Say’s law or the law of markets, stated that aggregate production necessarily precedes receipts and equal quantity of aggregate demand. That is production creates consumption or supply creates its own demand. Say argued that a product no sooner created that it from that instant afford a market for other products to a full extent of its own value and each of us can only purchase the production of others with our own production as the value we buy is equal to the value we produce. The more the men produce, the more they will purchase (economic growth). Say argues that his law suggests that a general glut cannot occur and if there is surplus of one good then there is unmet demand of another good. That is: if a certain good remains unsold then it is because other goods are not produced. General gluts however do occur during recessions and depressions.

Dana05 answered the question on July 3, 2019 at 11:18


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