Student roles should be assigned such that there are two workers for every firm. Workers must decide how much of their leisure time to consume or sell to firms. Firms use the labor to produce goods which they sell to workers or consume themselves. Since firms require labor to produce goods, the labor market operates before the goods market. Each firm begins with 26 red cards in order to buy labor.
Workers begin with three black cards in each period.
Introduce a 'government' that can 'print' additional red cards in order to simulate an increase in money supply. The Lucas Island Experiment . Each worker works on their own island, but shops at all of the islands. At the beginning of each day the worker knows his nominal wage but only has an estimate of the price level, hence, only an estimate of the real wage. The worker must decide how many hours to work at the expected real wage.