You are given the following information on the various sectors of the

You are given the following information on the various sectors of the economy. Derive the aggregate expenditure function.

C = 100 + 0.75Y
I = 200 + 0.20Y
G = 500
X = 250
M = 100 + 0.10Y

ANSWER

E = C + I + G + X – M
E = (100 + 0.75Y) + (200 + 0.20Y) + 500 + 250 – (100 + 0.10Y)
E = 950 + 0.85Y