An Interactive Simulation Game Focused On The Microeconomic Fundamentals Of Macroeconomics

Abstract

The game simulates an economy that is to a large extent determined by the decisions of the firms. The players in the game are firms that produce consumer goods and/or investment goods. The firms have to maximise their profits by deciding about their price, wage rate, labour demand and investment. The interaction between the decisions of the firms determine to a large extent the performance of the economy. For example, when all firms invest more, a hausse may emerge. When all firms rise their prices and wages, inflation will be the consequence. The profits of the firms depend to a large extent on their ability to respond correctly on the changes in the macroeconomic environment, an environment that is to a large extent determined by the decisions of the other players. This interrelation between business decisions and macroeconomic developments is the central focus of the game.