There was a fantastic discussion on the impact of cutting government spending on the radio this morning, here is the transcript. I would urge you to read this and make sure you understand it. E-mail me if you have any questions.
Also, think about how the pro-austerity view could be expressed mathematically. The Keynesian model you have studied would unequivocally recommend increasing government spending (G) or cutting taxes (T) to stimulate Aggregate Demand. What, according to those who support austerity, is missing from that model?
I will post again in a few weeks and give you my own thoughts, but you should have a think about it yourself first.
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