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"Supply creates its own demand"

"Supply creates its own demand". J.B. Say. Say's Law. Demand is never really the problem. Keynes. "Demand gets firms to increase Supply". Less spending leads to less output. wages and prices are not flexible.

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649 views • 39 slides

AP Macroeconomics

AP Macroeconomics. The AS/AD Model. The AS/AD Model. The equilibrium of AS & AD determines current output (GDP R ) and the price level (PL ). LRAS. SRAS. PL. P. AD. Y F. GDP R. Full Employment. Full Employment equilibrium exists where AD intersects SRAS & LRAS at the same point. LRAS.

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234 views • 15 slides

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&quot;Supply creates its own demand&quot;

AP Macroeconomics

"Supply creates its own demand"