Graphically, Aggregate Demand function can be obtained by vertically adding the ______ and ______ function.

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Graphically, Aggregate Demand function can be obtained by vertically adding the consumption and investment function. Explanation: The Aggregate Demand function shows the total demand (made up of consumption + investment) at each level of income. Graphically it means the aggregate demand function can be obtained by vertically adding the consumption and investment function. Here, OM = overlineC OJ = overlineI OL = overlineC + overlineI The aggregate demand function is parallel to the consumption function i.e., they have the same slope c. It may be noted that this function shows ex-ante demand. Aggregate demand is obtained by vertically adding the consumption and investment functions. [Solution diagram: 358628_solution_1.png]

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