In the traditional Keynesian model, if the government raises taxes, then

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In the traditional Keynesian model, taxes are considered to be a leakage from the circular flow of income. When the government raises taxes, households have less disposable income to spend on consumption goods and services. As a result, consumption decreases, which leads to a decrease in aggregate demand and a decrease in real GDP. Therefore, both consumption and real GDP will decrease.

In the Traditional Keynesian Model, If the Government Raises Taxes