Activity 01
Policy Simulation: Economy Response Game
Divide class into teams representing monetary, fiscal, and supply-side authorities. Present an economic shock like rising inflation, then have teams propose policies and predict interactions using a shared whiteboard model. Teams vote on the best mix and discuss outcomes.
Analyze how monetary and fiscal policies can either reinforce or contradict each other.
Facilitation TipIn the Policy Simulation, circulate with a timer and pre-set scenarios to keep the economy’s response visible on a whiteboard for all students.
What to look forPresent students with a scenario: 'The UK economy is experiencing high inflation and rising unemployment.' Ask them to discuss in small groups: 'What are the potential conflicts between using monetary policy (e.g., raising interest rates) and fiscal policy (e.g., cutting government spending) to address this situation? What are the potential complementarities?'