Question: Aggregate demand curve always start from point of origin
The correct answer is –
The statement “Aggregate demand curve always starts from point of origin” is incorrect. In macroeconomics, the aggregate demand curve represents the total amount of goods and services that an economy is willing to buy at different price levels. The aggregate demand curve typically has a downward slope, indicating that as the price level increases, the quantity demanded of goods and services decreases.
However, the starting point of the aggregate demand curve can vary depending on the level of government spending, investment, and net exports in the economy. In some cases, the aggregate demand curve may start above the origin if there is a significant amount of government spending or investment, which increases the total demand for goods and services at all price levels. Similarly, if a country is a net exporter, the aggregate demand curve may start above the origin as well.
Therefore, the statement “Aggregate demand curve always starts from point of origin” is false.
