Which of the following is true?

• Aggregate demand refers to the sum total of both demand and supply for all the goods and services in an economy during the accounting year, AD = C + I.
• Aggregate demand refers to the total expenditure on the final goods and services in the economy.
• If people spend less than what they were spending on goods and services earlier, it indicates a rise in the aggregate demand and vice versa.
• The components of aggregate demand and aggregate expenditure are same.
• There is an inverse relation between the aggregate demand and general price level.

2, 4 and 5

The correct answer is option 2: 2, 4 and 5

Explanation:

• Statement 2 is correct because aggregate demand refers to the total expenditure on final goods and services in an economy.
• Statement 4 is also correct, as the components of aggregate demand and aggregate expenditure  are indeed the same. Both refer to the total spending in the economy.
• Statement 5 is correct, as there is an inverse relationship between aggregate demand and the general price level (as prices rise, demand typically falls, and vice versa).

Statement 1 is incorrect because aggregate demand refers only to the demand side, not the sum of both demand and supply.
Statement 3 is incorrect because if people are spending less, it indicates a fall in aggregate demand, not a rise.