(ii) PREFACE

The computer programs outlined below are designed to supplement a modern course in economic principles. The purpose of the programs is to provide a basis for systematic independent study outside of the classroom, and to illustrate the use of simulation models in analysis of economic problems and economic policy. Both goals can be served by examination of many concrere examples, using the computer as a "scratch pad " to eliminate any burden of numerical calculation. In macroeconomic analysis, two broad questions of policy are usually distinguished. On the one han ~ is the traditional question of employment or s~abilization policy, based primarily on analysis of effective demand and capacity utilization. On the other hand there is the newer issue of growth policy, based primarily on analysis of potential output and the required level ~ of expenditures for expansion of productive capacity. (Question