Overview

Installation

Use

Tutorials

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2. Overview of MacroLab

MacroLab is an interactive computer model of the U.S. economy. It allows you to makes some assumptions about the economy, and then lets you see the implications of your assumptions. For example, you might wonder what would happen to the unemployment rate if consumers suddenly started saving more of their income (and spent less). MacroLab also contains historical data, and you will be able to track the performance of the U.S. economy over recent decades.

There are different ways to measure the performance of an economy over time. For example, we might take a look at the unemployment rate, the consumer price index, GDP, interest rates, and so on. We will refer to these as indicators of an economy's behavior over time. The complex web of interdependent relationships in an economy is called its structure. The structure of a system determines its behavior.

MacroLab is a model of the U.S. economy, which means it is a simplified version of that real-world system. The structure of MacroLab determines its behavior. In this course, we will use the MacroLab model--its structure and its behavior--to help us understand how the U.S. economy behaves and why.

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This electronic textbook is a work-in-progress. From time to time, you will see modifications. To begin with, it includes instructions for installing MacroLab and tutorials that you should study. More tutorials will be added weekly. And, of course, there will be assignments and Blackboard quizzes to see what you are learning.

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