Simple Economic System Models
Economic Intervention

Introduction

In this section, building on the model that we've developed over the last couple of sections, I will demonstrate the effects of economic intervention, specifically government intervention. I have included in this section two more versions based on the same basic model, which I describe briefly in the next tab (above).

Economic Interventions

Using the basic model that we developed in the last two segments we will make some changes intended to demonstrate the effects of government intervention. We have created two versions of this intervention model:

Scenario 1: More Additions
In the first version we breakout stocks and flows that represent the role of government. This model also gives you the ability to change some key variables to affect the simulation.
Scenario 2: Intervention Demonstration
In the second version we input data that reflects the ratcheting up of the rate of government consumption.
Let's begin our examination with scenario 1