The Republic of Yuck is a simple economy with no government, no taxes, and no imports and exports. Yuckers (citizens of Yuck) are creatures of habit. They have a rule that everyone saves exactly 24 percent of income. Assume that planned investment is fixed and remains at 72 billion Yuck dollars.

Expert economists of the Republic of Yuck have estimated the following:

Real GDP (Y): 197 billion Yuck dollars
Planned Investment Spending (I): 72 billion Yuck dollars

You are asked by the business editor of the Weird Herald, the local newspaper, to predict the economic events of the next few months. Based on the information given above you predict that the inventories will (stay unchanged/ increase/ decrease) and output will (increase/ stay unchanged/ decrease). .

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.