For this assignment, you will play the first run of the Macroeconomics Simulation: Econland from Harvard Business Review, in which you will act as policy adviser for the fictional country of Econland. Select the “Base Case” scenario for this practice run. You may play the simulation as many times as you like.
In your submission, remember to include the image of your simulation report. Then, reflect on the decisions you made in the simulation and address the following government intervention options in your submission:
- Macroeconomic Indicators: During the simulation, you made decisions concerning government spending. Discuss the impact of your decisions on key macroeconomic indicators such as real GDP growth and unemployment. Refer to the graphs “Real GDP Growth” and “Unemployment Rate” from your simulation results to illustrate the impact.
- Interest Rates: Describe how your changes in interest rates impacted inflation and other key macroeconomic indicators used in the simulation. Refer to the “Inflation Rate” graph from your simulation results.