You are the lab assistant, and the specimen is the economy. A shock — a stock crash, an oil embargo, a stimulus bill — opens a gap between current output (Y) and potential output (Yf). Walk the chain that closes the gap, then close it yourself before the clock runs out.
The classical model: a gap moves the labor market, the labor market moves wages, wages move per-unit costs, and costs shift SRAS until equilibrium returns to Yf.
Act I
The Causal Circuit
Two specimens. Walk the five-link chain one link at a time.
Act II
Demand Experiments
Five live shocks. Pull the lever. Tune the wage dial. Beat the clock.
Act III
Supply Experiments
Five supply shocks. Less time per round.
⚠ A note on the sound. Thunder, heartbeats, and a flatline. Use headphones in class.
"In the long run we are all dead."
— John Maynard Keynes, 1923
The specimen flatlined before the mechanism could complete.