In the closed economy the ex ante aggregate demand for final goods is the sum total of:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Ex ante consumption expenditure and ex ante investment expenditure on such goods.
In an economy without a government, the ex ante aggregate demand for final goods is the sum total of the ex ante consumption expenditure and ex ante investment expenditure on such goods, viz. AD = C + I.