Need an Answer

I'd love to get Paul Krugman's answer to this question:

Would there be a recession if:

1. the United States Federal Government reduced its spending from $3.5 trillion to $750 billion
2. states picked up a portion of this slack by increasing spending on formerly federal government programs 
• states manage and fund their welfare, unemployment, Medicare and Social Security programs (and fund them through their own means of taxation)
3. meanwhile overall units of service received by citizens increase or remain constant 
• thanks to increased efficiency, i.e. doing more with less--a characteristic emblematic of many industries that provide consumers with more satisfaction for less over time (e.g. computers, cell phones, consumer goods, automobile gas mileage, solar panels, etc.)

Said differently, if the federal, state and local governments were previously spending $30,000/year (and their citizens received 15 units of benefit), but reduced their spending by half to $15,000 (and their citizens continued receiving 15 units of service), would Keynesians (like Krugman) argue there would be a recession because spending decreased by $15,000?

I hope not, because then they would be arguing against the merits of efficiency...and that would be just crazy.