Suppose Congress decides to reduce the budget deficit by cuttinggovernment spend

Suppose Congress decides to reduce the budget deficit by cuttinggovernment spending. Use the Keynesian-cross model to illustrategraphically the impact of a reduction in government purchases onthe equilibrium level of income. Be sure to label: i. the axes; ii.the curves; iii. the initial equilibrium values; iv. the directionthe curve shifts; and v. the terminal equilibrium values.b. Explain in words what happens to equilibrium income as a resultof the cut in government spending and the time horizon appropriatefor this analysis.