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Calculate aggregate expenditure in equilibrium where ey

Assume C₀ = 200, I₀ = 200, G₀ = 100, X₀ = 100, M₀ = 100, T (taxes)= 100

Marginal propensities: c₁ = 0.8, i₁ = 0.1, m₁ = 0.15

Aggregate Expenditure: E = C₀ + c₁(Y - T) + I₀ + i₁Y + G₀ + X₀ - M₀ - m₁Y

Calculate aggregate expenditure in equilibrium where E=Y

Calculate and interpret the individual and combined effects of changes to X₀ and M₀ such that X₀ = 150 and M₀ = 150 and all other variables remain unchanged.

Also, calculate and interpret the values of the multiplier.

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