THE WORLD GAME OF ECONOMICS: LESSON 9
Focus on Economic Analysis and Writing Reports
NOTE: It is highly recommended that you read over this entire lesson before you begin.
Preliminary Discussion: The combined forces of Aggregate Demand and Aggregate Supply determine the level of output, prices, and employment for countries in the global economy. Aggregate Demand (AD) is the amount of total spending on the part of consumers, businesses, government, and net exports at different prices. Spending is inversely related to prices. Aggregate Supply is the amount of output on the part of producers at different prices. Production is directly related to prices. The equilibrium level of output and prices for a given economy is where Aggregate Demand is equal to Aggregate Supply.
Aggregate Demand and Aggregate Supply schedules are constantly in motion. This is what causes business cycles and fluctuations in output, prices, and employment for a given economy. Although economies are increasingly interdependent, each nation in the global economy experiences its own unique sequence of events and policies to determine its level of output, employment, and prices. At any particular time, countries around the world can have different problems and be in different phases of the business cycle.
Economists are called upon to research, describe, analyze, report, and explain individual country and global economic trends. They are asked to prepare reports which describe and forecast the direction of economic activity. Additionally, they make recommendations regarding economic policy in their reports.
The best economists are good writers and effective communicators. They are good at analyzing economic events, and they can effectively report their findings to others. Their reports are carefully prepared and clearly written, so that others (non-economists) can understand what is being said. Political leaders, in particular, are dependent upon sound economic analysis and clearly written reports to help them shape economic policy.
In The World Game of Economics you are the chief economic adviser to
the leaders of the country of your choice. You are in charge of economic
policy. Effective communication between yourself and political leaders
would be essential for sound economic policy. The objective is to
implement timely and appropriate economic polices to improve the overall
economic performance of your country. Good luck and have fun!
1. Play The World Game of Economics to 100 points against up to six other countries that are computer-managed (i.e., advised by Professor N. D. Cator). Note: If you do not know how to play the game, then select "Tutorial" from the main menu first. If you already know how to play, then select "New Game."
2. You are the chief economic adviser to which country?
3. How many other computer-managed countries are you playing against? ________.
SOMETIME AFTER THE 3RD YEAR AND BEFORE THE 10TH YEAR OF THE GAME COMPLETE THIS EXERCISE:
4. Which year have you chosen to complete this exercise? __________.
5. On the template below, indicate where your economy and each of the other countries are positioned after clicking on the Economic Indicator and the Current Event, but before going to the Policy Board. Use a colored felt pen to sketch flags or use abbreviations (e.g., USA = United States). Note: If you know how to use "Print Screen" tools, then use that method and attach to this exercise Circle the current position of your country.
6. Now click on ECONOMIC POLICY to go to the Policy Board. Select your economic policies. COMPLETE THE GAME. Print the final score.
7. Now look at the template you completed for instruction number 5 above. Based upon the country positions depicted on your template, write a definitive report which describes and analyzes trends in the global economy from your country's perspective. Describe the economic problems confronting each economy, note the direction of the Economic Indicator, and recommend economic policies which would improve the overall performance of countries. Pay particular attention to the problems and policies of your own country. Discuss fiscal, trade, and monetary policies.
You are encouraged to be creative. You may wish to develop tables, charts, or analytical diagrams which support your analysis. Your policy recommendations can be specific. For example, if you recommend an increase in government spending, you may recommend a specific spending program such as defense, education, or space exploration. If you propose a tax increase, you may suggest a specific type of tax such as personal income, corporate profits, or sales tax. Or you may suggest closing a specific tax loophole. If increasing industry regulations are appropriate, then specify which type of regulations for which industries. In each case, indicate the rationale for your policy recommendation.
Your report should be carefully prepared, clearly written, coherent, and concise. It should flow well and be easily read and understood by non-economists. Imagine that you are preparing the report for the president or the congress of your country.
Note: At the instructor's discretion, you will either receive up to
___ points or a letter grade for this report. Attach the completed
template from page 2 of this lesson and the print out of the final score
to your report. This report is due _______.
The World Game of Economics (C) 1999 Ronald W. Schuelke
All Rights Reserved