This model is a simulation of a national economy with business cycles that are generated by random shocks to the output of the economy.
This model performs Monte Carlo trials on the macroeconomic model and reports means and standard deviations of key variables, all in the spreadsheet. It includes one summary sheet for the statistical moments, and optioanlly one sheet to summarize each trial.
The model demonstrates how dynamic systems with random shocks can be modeled in spreadsheets.
The model is based on one "A Dynamic Synthesis of Basic Macroeconomic Theory: Implications for Stabilization and Policy Analysis," by Nathan B. Forrester, thesis at M.I.T. Sloan School of Management, 1982.
Fully Customizable
Using our automated modelling technology you can create a report that exactly suits your needs. Turn on and off major features, specify time line and "dimensions" such as product lines, preferred currency symbols, and date formats in a simple online form.
Easy to Use
The model is presented in a logical and intuitive format in Excel.
Your MacroEconomic Model spreadsheet contains:
- A carefully arranged layout
- Comments on every variable table
- Collapsible groups hide detail until needed
- Easy to understand symbolic formulas
- Easy modifiable data and preferences
Your model contains the all features needed for a basic macroeconomic model
with business cycles that are generated by random shocks.