1. If unplanned inventories start to decrease, this sends a signal to the firms that they need to _____production, and as a result prices will ____ in Keynesian Cross setup.
2. If the economic conditions improve then total spending by agents in an economy is likely to _____ which will _____ inventories inducing firms to _____ production.
3. If Marginal Propensity to save (MPS) decrease, the size of the multiplier would ____, and the consumption function would be _____.
4. If autonomous consumption (intercept of Keynesian Consumption Function) decreases the size of the multiplier would_____.
5. In a simple economy with no government, aggregate expenditure is ____.
6. If Logan received a $2,500 bonus and his MPS is 0.20, his consumption rises by$______ and his saving rises by$______.
7. If every entity in the economy increases their savings, then on aggregate this is likely to ______ equilibrium level of investment, ______ equilibrium level of savings, _______ equilibrium level of production and ______ unemployment.
8. According to Keynesian consumption function MPC______ as income (Y) increases.