Question

Supply creates its own demand. Comment on the statement.

Answer 1

"Supply creates its own demand" is the formulation of Say's law. The rejection of this doctrine is a central component of The General Theory of Employment, Interest and Money (1936) and a central tenet of Keynesian economics.

Keynes's rejection of Say's law has on the whole been accepted within mainstream economics since the 1940s and 1950s in the neoclassical synthesis, but debate continues between Keynesian economists and neoclassical economists (see saltwater and freshwater economics).