Question

Which of the following statement
is inconsistent with Say's Law of
Market?
O
The economy will produce at
full employment level of output.
O
The economy has an
environment of "laissez-faire."
O
The economy has flexible
wages and prices.
The economy's level of
investment solely depends on
the level of income.​

Answer 1

The statement that is inconsistent with Say's Law of Market is the economy's level of investment solely depends on the level of income.​

• Jean-Baptiste Say was the producer of the classical economical theory which states that the income that comes from the previous sales is the major source of determining the current production.
• Hence, the correct option is the economy's level of investment solely depends on the level of income.
• Other options, such as the economy has flexible wages and prices, is not correct as the economy does not have flexible wages or prices.

#SPJ2

Answer 2

Explanation:

The economy's level of

investment solely depends on

the level of income.