Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

Multiple Choice

Consider a simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption. If the consumption function is JC = $500 + 0.8Y, planned investment = $200, government purchases = $300,
Jnet exports = $100, and real GDP = $1,000, what is the amount of induced expenditures?

A) $500
B) $800
C) $1,100
D) $1,900