Read the following statements carefully :
Statement 1: Ex-post savings and Ex-post investments are equal at all
levels of income.
Statement 2: Under the effective demand principle, the equilibrium output is equal to ex-ante Aggregate Demand (AD).
In the light of the given statements, choose the correct alternative from the following :
(A) Statement 1 is true and Statement 2 is false.
(B) Statement 1 is false and Statement 2 is true.
(C) Both Statemente 1 and 2 are true.
(D) Both Statements 1 and 2 are false.
