Calculate the equilibrium aggregate expenditure and equilibrium income of an open economy with the following expenditure accounts:

C₀ = 200, I₀ = 200, G₀ = 100, X₀ = 100, M₀ = 100, T_P = 0, c₁ = 0.8, i₁= 0.1, m₁ = 0.15

where

E = aggregate expenditure

C₀ = autonomous consumption expenditure

I₀ = autonomous investment expenditure

G₀ = autonomous government expenditure

X₀ = autonomous export spending

M₀ = autonomous import spending

T_P = personal taxes

c₁ = marginal propensity to consume

i₁ = marginal propensity to invest

m₁ = marginal propensity to import

1. Calculate the equilibrium level of income/ aggregate expenditures.

2. Assuming M =200, calculate the new equilibrium and the multiplier.

3. Assuming now that TP= 200, calculate the new equilibrium level.