1. Suppose that at the North Pole, Santa's economic advisors develop the following model to describe their economy: C = 450 + 0.75Ya I = 200 G = 100 X = 100 M= 100 + 0.25Yd T = 100 a. Find the aggregate expenditure function for the North Pole. (2 points) b. F'ind the cquilibrium level of GDP for the North Pole. (2 points) c. Show your answer to b) graphically. (2 points) d. What is the level of consumption spending at equilibrium? (1 point) e. What is the level of saving at equilibrium? (1 point) f. What is the government's budget position at equilibrium? (1 point) g. What is the spending multiplier in this model? (1 point) h. What is the tax multiplier in this model? (1 point) i. Assume that Santa raises taxes by $100 to buy more presents. What is the new equilibrium level of GDP? (1 point) j. On a new graph, show both your answers to b) and i) graphically. (1 point) k. For the new equilibrium in question i), show that leakages = injections. (2 points)