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« Other People's Money | Main | Sumner, Murphy, Richman, and Cantillon Effects »


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It is supply and demand. Not supply or demand.

You know, how many popular fallacies are based on thinking only about supply or else demand and not considering joint determination of prices and quantities.

(But I love video.)

I agree with Bill. It's like Greg Mankiw once said when he was asked if he was a supply-side or demand-side economist. His response was that he was a supply-and-demand economist.

That should be every economists' response and that's a big problem with the way this and previous videos present the issues. It's liable to mislead people and propagate fallacies.

We know both matter. Supply factors tend to assert themselves in the long run and demand factors tend to assert themselves in the short run.

"Men err in their production; there is no deficiency of demand."

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Why doesn't income equal expenditure?

Is savings equal to investment?

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