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Business, 16.04.2020 22:37 MalikaJones

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). .

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