Slashing spending spurs private investment as the privatisation of state-own properties and companies can encourage private investment. Therefore I will increase to keep the amount of injection of income to the circular income flow. Consumers and producers will feel confident about the future and will spend more because the originally state-owned companies should be lucrative. once the increase in investment exceeds the decrease in government spending, AD will increase from AD2 towards AD3, causing the national income to grow towards Yf, showing that the economy is growing.