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“Supply creates its own demand”. This statement was given by the economist:
Keynes
Pigou
J. B.Say
Adam Smith
- Option 1: Keynes
- John Maynard Keynes is known for Keynesian economics, which emphasizes government intervention in managing economic cycles.
- He countered Say's Law by proposing that demand drives supply, especially during recessions.
- Option 2: Pigou
- Arthur Pigou was a British economist known for his work on welfare economics.
- He focused on externalities and economic welfare, not directly related to Say's Law.
- Option 3: J. B. Say
- Jean-Baptiste Say, a French economist, proposed the idea that "supply creates its own demand."
- This idea became known as Say's Law, suggesting that production inherently creates market demand.
- Correct Answer: J. B. Say
- Option 4: Adam Smith
- Adam Smith is known as the father of modern economics.
- He focused on the invisible hand and free markets but did not specifically propose Say's Law.
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