Should we save or should we consume? Linking growth theories and the Keynesian models

In major economic growth theories, high saving rate gives rise to high level of output per capita. But in Keynesian economics, high saving rate causes low consumption and will lead the economy into recession. Students may ask, "For the well-being of an economy, should we save or should we consume?" In most of the intermediate macroeconomics textbooks, economic growth and Keynesian economics are taught in separate chapters; and in many cases, these chapters are not even successive to each other. There lacks a continuity between the long run and short run models. This paper builds a bridge between growth theories and Keynesian models. It links the Solow diagram and the IS-LM curves and depicts the short run and long run implications of a change in the saving rate.