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Discuss why Say's law is true in many precapitalist societies but not in capitalism as we see it today. -Did cycles of boom and bust exist under feudalism? Why or why not?

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Progressive economists argue that recessions and depressions occur when


A) there is an unexpected outside shock to the economy.
B) aggregate demand is insufficient to purchase aggregate supply.
C) government intervenes and disturbs the process of equilibrium.
D) the Federal Reserve issues too much currency.

E) All of the above
F) None of the above

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Explain Say's law and discuss the arguments supporting it. -What does Say's law mean? Why can't there ever be a lack of demand in the aggregate?

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