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Economics miscellaneous

  1. The economist who believed that unemployment is impossible and that market mechanism has a built in regulatory system to meet any ups and downs
    1. J.M.Keynes
    2. Ohlin
    3. J.B.Say
    4. Galbraith
Correct Option: C

The classical economists’ belief in full employment as a normal condition of a free market economy is based on Say’s Law of Markets. It was on the basis of this law that the classical economists thought that general over-production and hence general unemployment were impossible. The law simply states “supply creates its own demand.”



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