Choose the correct statements from the following:

(A) Adam Smith is termed as Father of Modern Economics.
(B) J.M. Keynes gave the Theory of Income, Output and Employment.
(C) Four Sector Model = C + I + G + (X– M)
(D) Store of value is primary function of money.

Choose from the options given below:

The correct option is (A), (B) and (C) only.

Let us analyze each of the given statements step-by-step to understand why they are correct or incorrect:

Statement (A): Adam Smith is termed as Father of Modern Economics.
This statement is correct. Adam Smith, a Scottish philosopher and economist, is widely regarded as the "Father of Modern Economics" due to his pioneering book, "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776), which laid the foundation for classical economic theory and free-market policies.

Statement (B): J.M. Keynes gave the Theory of Income, Output and Employment.
This statement is correct. John Maynard Keynes revolutionized economic thinking during the Great Depression with his landmark book, "The General Theory of Employment, Interest, and Money" (1936), which introduced the Keynesian macroeconomic framework focusing on how aggregate demand determines levels of income, output, and employment.

Statement (C): Four Sector Model = C + I + G + (X - M)
This statement is correct. In macroeconomics, the circular flow of income in an open economy is represented by the four-sector model. This model calculates the aggregate demand or National Income by adding the expenditures of all four economic sectors: households, businesses, government, and the foreign sector.

$\text{Four Sector Model}=\; C\; +\; I\; +\; G\; +\; (X\; -\; M)$

Where:
• $C$ = Household Consumption Expenditure
• $I$ = Private Investment Expenditure
• $G$ = Government Expenditure
• $(X-M)$ = Net Exports (Exports minus Imports)

Statement (D): Store of value is primary function of money.
This statement is incorrect. The functions of money are broadly classified into primary and secondary functions. The primary (or main) functions are medium of exchange and measure of value (unit of account). The function of acting as a store of value is a secondary (or subsidiary) function of money, not a primary one.

Thus, statements (A), (B), and (C) are correct, while statement (D) is incorrect. This directly leads to the selection of (A), (B) and (C) only.