Using the concepts you have been studying, describe how the game shows the use of monetary policy. How can unforeseen circumstances affect the economy?
The above link will take you to another economics simulation. This time you will play the role of the Fed chairman. The game will take you through a simulated economy and allow you to control the federal funds rate affecting the unemployment and inflation rates. The object of the game is to get appointed for another term, which isn’t easy. Read the instructions and play at least two rounds of the game.
After playing, write a paper reflecting on the simulation and describing your experience (250 word minimum). Things to include: Using the concepts you have been studying, describe how the game shows the use of monetary policy. How can unforeseen circumstances affect the economy? (Give examples.) How does the Fed react to these circumstances? And finally, did you get re-appointed? Why or why not?
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