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Say's Law

Jean Baptiste Say was a French economist who wrote A Treatise on Political Economy  in 1803 in order to counter what the Mercantilist doctrine said. According to Mercantilists money is the source of wealth. Say objected to this claim and created Say's Law.  Say's Law states that supply will create its own demand. This idea came about in a time where many economists were noting economic downturns which today we call recessions.  This idea suggests that people work and supply to the markets because there is a demand for goods of equal value.  According to this law, aggregate demand will always equal aggregate supply.

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