Graphically, Aggregate Demand (AD) function can be obtained by vertically adding the _____ and _____.

consumption, investment

The correct answer is Option (1) → consumption, investment

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 = $\bar C$

OJ = $\bar I$

OL = $\bar C$ + $\bar I$

The aggregate demand function is parallel to the consumption function i.e., they have the same slope c.