Which of the following statements is correct ........

Economics (CUET) Determination of Income and Employment

Which of the following statements is correct?

Aggregate Demand refers to the total demand for the goods and services in the economy as a whole.

Aggregate Demand constitutes of Consumption Expenditure, Investment Expenditure and Government Expenditure only.

The expenditure of household and private investors in an economy for an accounting year is termed as Public Consumption Expenditure.

The demand of only goods by the households in an economy is termed as Private Investment Expenditure.

Option (1) is correct.
Explanation: Components of Aggregate Demand:

(i) Private consumption expenditure
(ii) Government consumption expenditure
(iii) Investment expenditure
(iv) Net exports

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