Suppose the economy is in recession.

The federal government then begins running large budget deficits.
According to the functional finance/Keynesian view of fiscal policy, how will the deficits affect real GDP, employment, and the price level?
Explain in words and a graph.

Keynesian economics dictates that running budget deficits during a recession is an essential step, and that the government needs to pump cash into the economy in order to increase long-term GDP, employment, and the price level.