2. [20 pts] Using the circular flow model: a. [5 pts] Explain why imports cause the flow of income to diminish. b. [6 pts] Explain how the Government sector impacts the economy using its purchasing and taxing powers. Use examples at the provincial government level in Canada to support your answer. c. [9 pts] Drawing on a circular flow model diagram, state the flows in which each of the following transactions would be entered. [Assume Saskatchewan as the regional economy.] i. [3 pts] A consumer purchases sausages at a local farmers market. ii. [3 pts] A couple from Manitoba visits Moose Jaw and stays at Temple Gardens Hotel & Spa. iii. [3 pts] The City of Regina contracts a firm from Calgary to build a new building. The City has made a condition that the labour required for the project should be recruited from residents of Regina.