ECON 272

In Class Exercise Thirteen –

Say's Law, Productivity and Monetary Policy

1.  The big debate among economists can be narrowed down to what disagreements?

2.  Explain Say's Law and why, if an economist believes in Say's Law, they do not believe that spending drives an economy.

3.  Explain how Bastiat explained Say's Law by emphasizing the consumer.  Make sure you discuss the difference between wants and demand.

4.  Those who believe in Say's Law would not (generally speaking) support monetary policy.  Why not?  Explain.

5.  What questions do you still have about this material?