Consider a Closed Economy Described by AE (Aggregate Expenditures)= 800

Consider a closed economy described by AE (aggregate expenditures) = 800, 000 + 0.75Y Assume that this economy is initially in equilibrium.But now the government implements a program to improve highways that will cost $1 million.This implies that equilibrium real GDP will:

A) decrease by $1 million.
B) decrease by $4 million.
C) increase by $1 million.
D) increase by $4 million.
E) decrease by $800, 000.

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