The Economic Balancing Act

Monetary Policy (Fed) Fed Funds Rate: 2.0 % Higher rates cool inflation but slow growth. The Economic Balancing Act lets you explore this hands-on instead of only reading about it.

Examination of the tools used by central banks and governments to influence economic activity. It focuses on Federal Reserve, Interest Rates, Budget Deficits, Taxation from the “Monetary and Fiscal Policy” section.

The “Fed Funds Rate: 2.0 %”, “Budget Balance: 0 %”, “MPC: 0.6” sliders change the key inputs; the “TRIGGER ECONOMIC SHOCK” button run actions or reset the demo. Every change updates the visualization in real time, so you can see exactly how each variable affects the outcome.

OpenStax Principles of Macroeconomics 3e is a comprehensive, peer-reviewed open-source textbook designed for introductory college courses. The course provides a balanced approach to economic theory, covering both Keynes… This demo is the interactive piece for the “Monetary and Fiscal Policy” section. Open the full Principles of Macroeconomics course wiki at https://www.getlykke.com/explore/public/principles-of-macroeconomics-0555c62a-12dd-4b40-b6fe-b39608198a3f for notes, flashcards, quizzes and the other demos.

You'll build intuition for Federal Reserve, Interest Rates, Budget Deficits, Taxation — and, crucially, see how they behave when you change the inputs, which is hard to get from a textbook or lecture on Principles of Macroeconomics alone.