a) Calculate the equilibrium aggregate demand if:

Government spending is $255 billion.

Government taxation is $180 billion.

Planned investment is $205 billion.

Imports are $90 billion and exports are $44 billion.

The marginal propensity to spend is 0.55.

The autonomous consumer expenditure is $90 billion.

b) Suppose the marginal propensity to consume is increased by 0.05 whilst taxes, government spending, imports, exports, and investment remain unchanged as given in part (a). What is the new value of the equilibrium aggregate demand?