Suppose the injections to the circular flow (investment I, government spending G and exports X) do not depend on the current level of national output Y. In contrast, suppose leakages increase as output increases. (a) Suppose saving S = 0.1Y. If total injections equal 10, what is the equilibrium level of output? (Assume a circular flow model without government and foreign sectors.) (b) Now suppose imports Z 5 0.4Y and taxes T 5 0.5Y. If G = 40, is the government budget (G 2 T) in surplus or deficit?