According to Keynes,equilibrium analysis can also be done using the injections leakages approach i-e when withdrawals or leakages (W) are equal toinjections (J) in the economy. Keeping in view this notion, assume that Investment (I) = 100, Savings (S) = 120, Exports (X) = 40, Imports(M) = 30, Taxes (T) = 40, Government Expenditures (G) = 50
a. Point out the leakages and injections functions.
b. Find out the Keynesian equilibrium (W=J) in the economy.