Which of the following is true about the aggregate demand curve in the short run;
Choose the correct option:
Which of the following is true about the aggregate demand curve in the short run;
Choose the correct option:
Solution
✅ Correct Option: 3
AD = C + I, where consumption C includes autonomous consumption (positive even at Y=0). Thus, at Y=0, AD equals autonomous consumption plus investment, giving a positive intercept on the Y-axis.
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