## 3 Model Overview  
### Overview of the ACE Model  
The model comprises five types of agents: households, which are the agents of labor and consumption; firms, which are the producers of employment and consumption goods; banks, which perform the money circulation function of the market; equipment makers, which are the producers of capital goods; and the government. It also makes the following assumptions with regard to the model as a whole. * There are I types of consumer goods to ensure market diversity. - Each firm produces two types of goods, which are randomly assigned at the beginning of the simulation from among the I types, but does not change its production type until the end of the simulation. - A competitive situation occurs in the market because multiple firms produce the same type of goods. - The production volume and prices of each product (type of goods) are adjusted by individual firms based on their own product sales. - Each consumer is assigned three market-recognizable types of consumer goods randomly at the beginning, and the types do not change until the end of the study. - The consumers' preferences for each of the consumer goods are randomly assigned at the start. - The production equipment manufactured by the equipment makers shall always have a certain function (see production formula below) at a certain price, regardless of the product type or the state of the firm. * Household income is determined by wages from firms, government subsidies, and interest from banks. - Firms' funds are determined by sales to households, government subsidies, and borrowing from banks. - Government funding is determined by taxes paid by households and firms. - Funds in the system increase through bank credit creation, but not otherwise. * Accounting-related tables and model overview charts  
Table 1 presents the accounting-related tables [51] for the financial relationships among the agents in this model. The accounting-related tables indicate the financial transactions that occur between agents, with the left half of the table showing the journal entries for the agents that perform active actions and the right half indicating those of the agents that perform passive actions. The journal entries follow accounting rules. For instance, if cash, an asset item, appears on the journal side, it indicates that the transaction will increase the available cash. Figure 1 depicts the interrelationships of the agents in the model. The numbers written on the lines drawn between the agents in the figure are the numbers from the accounting-related tables. In addition, although Gross Domestic Product (GDP) and other data are compared in the simulation results of this model, GDP is calculated from these accounting data by calculating an input-output table for each period. Table 1 and Figure 1 are complementary representations of this model. Figure 1 is a conceptual representation showing that the funds in the model circulate among the agents and that the funds originating outside this loop do not flow into the model. This is shown specifically in the accounting-related tables in Table 1. All the monetary transactions between the agents included in this model are represented in the accounting-related tables. Therefore, this model shows that household income is paid out of corporate sales and that corporate sales are derived from the outlay of household income. Furthermore, the government collects and redistributes taxes from households and businesses, and the funds borrowed from banks for capital investment circulate in the market and are returned to the banks again, forming a complete capital circulation model. Order of actions  
In this model, the actions are performed with the following steps, and the steps in this process are assumed to cycle within a time interval of one month in real time, which is also referred to as one period. The number listed for each step is the number from the accounting-related tables, and the corresponding numbered transactions in each step are made between the agents. 1.