Statement 1 : Any change that affects that IS, LM and BP curves can affect the nation’s aggregate demand curve.
Statement 2 : Aggregate demand curve of the nation depends whether the nation operates under fixed or flexible exchange rate.
1
Both the statements 1 and 2 are incorrect
2
Both the statements 1 and 2 are correct
3
Statement 1 is correct but the statement 2 is incorrect
4
Statement 1 is incorrect but the statement 2 is correct