economic simulations

Economic simulations are computer-based models that mimic how economies function. They use data and assumptions to analyze relationships between variables like prices, employment, and inflation. By running these simulations, economists can test the potential effects of policies, market changes, or shocks before implementing real-world decisions. This helps in understanding complex economic dynamics, forecasting future trends, and making informed policy choices. Essentially, it's like a virtual economic laboratory where you can experiment safely without real-world risks.