law of markets
E654011
The law of markets is an economic principle, commonly associated with classical economist Jean-Baptiste Say, which posits that aggregate supply inherently creates an equivalent level of aggregate demand.
All labels observed (1)
| Label | Occurrences |
|---|---|
| law of markets canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T7279722 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: law of markets Context triple: [Say's law, alsoKnownAs, law of markets]
-
A.
The Power of the Market
"The Power of the Market" is a well-known chapter from Milton and Rose Friedman's book *Free to Choose* that explains how free-market mechanisms coordinate economic activity and promote individual freedom.
-
B.
theory of supply and demand
The theory of supply and demand is a fundamental economic model explaining how prices and quantities of goods and services are determined by the interaction between buyers’ willingness to pay and sellers’ willingness to produce.
-
C.
Economics Rules
"Economics Rules" is a book by economist Dani Rodrik that explains how economic models work, their strengths and limitations, and how they should be used to understand real-world problems.
-
D.
efficient market hypothesis
The efficient market hypothesis is a financial theory asserting that asset prices fully and immediately reflect all available information, making it impossible to consistently achieve returns above the market average through information-based trading.
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E.
La loi du marché
La loi du marché is a French social drama film that follows an unemployed middle-aged man confronting moral dilemmas after taking a security job in a supermarket, highlighting the harsh realities of modern labor and economic precarity.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: law of markets Target entity description: The law of markets is an economic principle, commonly associated with classical economist Jean-Baptiste Say, which posits that aggregate supply inherently creates an equivalent level of aggregate demand.
-
A.
The Power of the Market
"The Power of the Market" is a well-known chapter from Milton and Rose Friedman's book *Free to Choose* that explains how free-market mechanisms coordinate economic activity and promote individual freedom.
-
B.
theory of supply and demand
The theory of supply and demand is a fundamental economic model explaining how prices and quantities of goods and services are determined by the interaction between buyers’ willingness to pay and sellers’ willingness to produce.
-
C.
Economics Rules
"Economics Rules" is a book by economist Dani Rodrik that explains how economic models work, their strengths and limitations, and how they should be used to understand real-world problems.
-
D.
efficient market hypothesis
The efficient market hypothesis is a financial theory asserting that asset prices fully and immediately reflect all available information, making it impossible to consistently achieve returns above the market average through information-based trading.
-
E.
La loi du marché
La loi du marché is a French social drama film that follows an unemployed middle-aged man confronting moral dilemmas after taking a security job in a supermarket, highlighting the harsh realities of modern labor and economic precarity.
- F. None of above. chosen
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
economic principle
ⓘ
macroeconomic theory concept ⓘ |
| alsoKnownAs |
Say's law
NERFINISHED
ⓘ
Say’s Law of Markets NERFINISHED ⓘ |
| appliesTo | aggregate level of the economy ⓘ |
| associatedSchool | classical economics ⓘ |
| associatedWith | Jean-Baptiste Say NERFINISHED ⓘ |
| assumes |
competitive markets
ⓘ
flexible prices and wages ⓘ money is neutral in the long run ⓘ savings are automatically translated into investment via interest rate adjustments ⓘ |
| contrastedWith | Keynesian economics NERFINISHED ⓘ |
| coreClaim |
aggregate supply creates its own aggregate demand
ⓘ
general overproduction in the whole economy is impossible in the long run ⓘ production is the source of demand ⓘ |
| criticizedBy | John Maynard Keynes NERFINISHED ⓘ |
| criticizedIn | The General Theory of Employment, Interest and Money NERFINISHED ⓘ |
| debatedBy |
David Ricardo
NERFINISHED
ⓘ
Thomas Robert Malthus NERFINISHED ⓘ |
| doesNotDeny |
possibility of sectoral overproduction
ⓘ
possibility of temporary gluts in specific markets ⓘ |
| domain |
economic theory
ⓘ
macroeconomics ⓘ |
| focusesOn | relationship between aggregate supply and aggregate demand ⓘ |
| formulatedBy | Jean-Baptiste Say NERFINISHED ⓘ |
| historicalContext | developed in the early 19th century ⓘ |
| implies |
markets tend toward full employment if prices and wages are flexible
ⓘ
unsold goods result from misallocation of production, not from a deficiency of aggregate demand ⓘ |
| influenced |
19th-century debates on crises and gluts
ⓘ
classical macroeconomic thought ⓘ laissez-faire policy arguments ⓘ views minimizing the role of government in stabilizing demand ⓘ |
| KeynesianCritique |
aggregate demand can be insufficient to purchase full-employment output
ⓘ
economies can experience prolonged underemployment equilibria ⓘ |
| languageOfOrigin | French ⓘ |
| modernInterpretation | often reformulated in terms of long-run supply-side orientation of growth models ⓘ |
| modernView | considered an oversimplification of aggregate demand dynamics by most economists ⓘ |
| originalFormulationContext | analysis of industrial and commercial markets in early 19th-century France ⓘ |
| policyImplication |
emphasis on encouraging production and supply
ⓘ
limited need for government demand management ⓘ |
| relatedConcept |
Say’s equality
NERFINISHED
ⓘ
Say’s identity NERFINISHED ⓘ classical dichotomy ⓘ |
| usedToSupport |
arguments against the possibility of chronic general gluts
ⓘ
arguments for self-correcting markets ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: law of markets Description of subject: The law of markets is an economic principle, commonly associated with classical economist Jean-Baptiste Say, which posits that aggregate supply inherently creates an equivalent level of aggregate demand.
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.