In the traditional Keynesian model, if the government decreases spending, then

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In the traditional Keynesian model, decreasing government spending will result in a decrease in aggregate demand. Since consumption is a component of aggregate demand, it will also decrease, leading to a decrease in real GDP by more than the decrease in government spending. This is because of the multiplier effect, where one unit decrease in government spending leads to a decrease in income and consumption, which, in turn, leads to another decrease in income and consumption, and so on.

In the Traditional Keynesian Model, If the Government Decreases Spending