They help students determine which variables affect the demand side of the market, which variables affect the supply side, and how changes in aggregate demand and aggregate supply alter the equilibrium and overall performance of a given economy. Professor N.D. Cator explains how Aggregate Demand and Aggregate Supply interact to determine the level of output, employment, and prices. He also points to the direction of the Economic Indicator during the game. When you play the game against the computer, he is the economic adviser to computer-managed countries. Players use economic policies to manage their economies and get to the center of the playing area.
Fiscal policy can effectively combat recession, and fine tuning options are available.
However, fiscal options can be impeded by policy gridlock . Trade policy affects other countries. Currencies can be deliberately depreciated or appreciated. Free Trade Areas can be formed by mutual agreement. Monetary policy is flexible, but it has a time lag.