say's Law of Market & theory of effective demand

Say's Law of market is based on

• Foreign investment policy

• Laissez-faire policy

• Government policy

• state intervention

According to Classical economists, the market forces will maintain

• full employment in the long-run

• full employment in the short-run

• under employment in long-run

• under employment in short-run

Full employment is defined as a situation where there is no

• employment

• poverty

• frictional unemployment

• involuntary unemployment

Classical economists ignored the problem of

• Poverty

• Unemployment

• Regional disparity

• Hunger

Say's Law of Market states that

• "Demand and supply is automatically created"

• "Demand creates its own supply"

• " Supply creates its own demand"

• "Neither demand nor supply is created"

According to Say's Law of Market, overproduction is a situation where

• aggregate supply is greater than aggregate demand

• aggregate supply is lesser than aggregate demand

• aggregate demand is greater than aggregate supply

• aggregate supply is equal to aggregate demand

According to Say's Law of Market, for correcting disequilibrium from market

• price and wages in the economy should be fixed

• price and wages in the economy should be equal

• price and wages in the economy should be deducted

• price and wages in the economy should be flexible

Say's Law is found to be valid in both

• money economy and capital economy

• capital economy and barter economy

• barter economy and money economy

• barter, money and capital market

According to classical economist, interest is a reward for

• saving

• income

• expenditure

• production

According to classical theory of employment, rate of interest is in equilibrium where

• demand = supply

• saving = investment

• investment = supply

• investment = demand