both the intake and the exhaust are over-restricted in the stock motor. if one changes the stock motor by reducing the friction losses in both the intake and exhaust more mechanical horsepower at a given rpm will be generated (if one compared the stock dyno curve to the post-mod dyno curve), the catch for improved mileage is to ease off on the gas pedal while accelerating and cruising. if one were to keep the gas pedal at the same spot post-mods, more gasoline will be consumed (and more acceleration/power/noise).