The Classroom as Policy Laboratory: Using a Classroom Simulation to Experience Macroeconomic Policy
32 Pages Posted: 8 Feb 2013
Date Written: Decembet 11, 2011
This paper describes a classroom simulation of a simple economy. The simulation is similar in structure to classroom experiments, but it is carried out regularly throughout the term. This repetition allows for a less deterministic simulation and also lets students become comfortable in the active learning environment and experience multiple roles. The basic setup includes three markets: labor, food and non-food. Students run the entire economy, from hiring their classmates to producing goods and buying them. Students also elect a class congress, which allows them to experience government intervention in the economy. As simulation progresses, additional economic concepts and measurements are incorporated, including but not limited to GDP (real and nominal) unemployment, poverty, inequality, economic growth, investment, money supply and inflation.
Keywords: economic education, active learning, classroom experiment, simulation
JEL Classification: A22
Suggested Citation: Suggested Citation