Consider a Simple Aggregate Expenditure Model Where All Components of Aggregate

question 154

Multiple Choice

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

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

---

Definitions:

Structure View

A feature in various software applications that shows the elements of a document or project in a hierarchical tree structure for easier navigation and organization.

Hyperlink

A reference in a document that the reader can directly follow by clicking or tapping, usually to another location within the same document or to an external website.

URL

The address of a resource on the internet, specifying its location on a computer network and a mechanism for retrieving it.

Web

The vast, interconnected system of unique resources and pages on the Internet, accessible through browsers.