<p>How about <a href="https://en.wikipedia.org/wiki/Walras%27s_law" rel="noreferrer">Walras's law</a>?</p>

<blockquote>
  <p>Walras's law is a principle in general equilibrium theory asserting that budget constraints imply that the values of excess demand (or, conversely, excess market supplies) must sum to zero.</p>
</blockquote>

CC BY-SA 3.0
2018-02-01T10:36:34.950Z
Ofcourse... i should have athought about that. But what if we assume a dynamic economy, so that saving is possible?
user56834
CC BY-SA 3.0
2018-02-01T13:27:58.160Z
@Programmer2134 I don't see how that alters the argument. Gen. eq. theory allows for intertemporal decisions, you can treat goods from different periods as different goods. The general equilibrium, wherein there is an equilibrium in each market will still result in an equilibrium for each good in each time period. Walras's law still applies.
Giskard
CC BY-SA 3.0
2018-02-01T13:30:50.607Z
@Programmer2134 As an aside: If this additional condition would strongly alter your question then it is not very good form to [edit it in after your original question has been answered](https://economics.meta.stackexchange.com/questions/1460/editing-answered-questions).
Giskard
CC BY-SA 3.0
2018-02-01T09:16:58.933Z
2018-02-01T09:16:58.933Z
Giskard
<p>Say's law is roughly that "an increase in aggregate supply generates an equal increase in aggregate demand".</p>

<p><strong>Can this law be stated, or derived from, a model of general equilibrium?</strong></p>

<p><strong>EDIT</strong>: what if we assume a dynamic economy? I.e. where saving is possible.</p>

<general-equilibrium>
Say's law stated in terms of general equilibrium theory?
user56834
# Say's law stated in terms of general equilibrium theory?

(Asked by: username_0 on 2018-02-01)

Say's law is roughly that "an increase in aggregate supply generates an equal increase in aggregate demand".

**Can this law be stated, or derived from, a model of general equilibrium?**

**EDIT**: what if we assume a dynamic economy? I.e. where saving is possible.

**Tags:** general-equilibrium


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## 1 answers

### Answer by username_1 on 2018-02-01. Score: 4

How about [Walras's law](https://en.wikipedia.org/wiki/Walras%27s_law)?

> Walras's law is a principle in general equilibrium theory asserting that budget constraints imply that the values of excess demand (or, conversely, excess market supplies) must sum to zero.

> **Comments:**
> **username_0**: Ofcourse... i should have athought about that. But what if we assume a dynamic economy, so that saving is possible?  
> **username_1**: @Programmer2134 I don't see how that alters the argument. Gen. eq. theory allows for intertemporal decisions, you can treat goods from different periods as different goods. The general equilibrium, wherein there is an equilibrium in each market will still result in an equilibrium for each good in each time period. Walras's law still applies.  
> **username_1**: @Programmer2134 As an aside: If this additional condition would strongly alter your question then it is not very good form to [edit it in after your original question has been answered](https://economics.meta.stackexchange.com/questions/1460/editing-answered-questions).  

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