How can simulation be used effectively in economic conditions?

I have a 25 page assignment and I've done them all except this question. I tried googling it and reading articles so if anyone can help me I'd appreciate it.

Ill give MHO to anyone who can


Most Helpful Guy

  • I would expect that a good simulation can be used to predict economic effects due to various economic controls changes or supply shocks.

    By "effects", I mean the impact on varioys economic indicators such as GDP growth, unemployment levels, tax revenue.

    By "controls changes", I mean adjusting the money supply, adjusting the prime lending rate, adjusting tax rates or giving refunds, or adjusting tariffs (such as what occurs with trade deals).

    By "supply shocks", that's the sudden change in the availability and/or price of a commodity.


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  • Simulation. Or stimulation?


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