How do I simulate a business cycle?

Open this page and use the live Comparative Advantage tool below — set your inputs and the simulation runs instantly in your browser using real numerics. No install, no account needed.

Yes. The simulation runs free in your browser. A one-time unlock or a Pro plan adds advanced parameters, saved presets, data import, and clean exports.

Can I use my own numbers?

Absolutely — every input is adjustable, and with data import you can drive a business cycle from your own measurements.

Use case · powered by Comparative Advantage

Comparative Advantage for a business cycle

Simulate a business cycle live in your browser. This runs the real Comparative Advantage solver — adjust the inputs, watch it respond instantly, and export the result. No install, no account.

For:Students Researchers Educators Engineers Hobbyists & Makers K-12 Students First Responders

Comparative AdvantageLive

the gains from trade

Controls

Presets

A max wine

A max cloth

B max wine

B max cloth

David Ricardo's great insight: even if one country is worse at making everything, both still gain from trade. Each should specialize in the good it gives up the least to produce — its comparative advantage — measured by the slope of its production-possibility frontier. Trade then lets both consume beyond their own frontiers.

▶ Run in Python

Data Inspector

A opp. cost (wine)0.50 cloth

B opp. cost (wine)2.00 cloth

A should makewine

B should makecloth

Governing equation

opp_{A} = \frac{3}{6} = 0.50, opp_{B} = \frac{4}{2} = 2.00 \Rightarrow A \to wine, B \to cloth

Reading this result: Country A gives up 0.50 cloth per wine versus B at 2.00, so A specializes in wine and B in cloth — trade then lets both consume beyond their own frontiers.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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About this simulation

The full Comparative Advantage tool models a business cycle with the same numerics engineers and scientists use — running entirely client-side. Change any parameter and the result updates in real time, so you can build intuition, check a design, or teach the concept without spreadsheets or installs.

More you can do with Comparative Advantage

Comparative Advantage for a supply-demand market Comparative Advantage for a monopoly Comparative Advantage for an auction Comparative Advantage for a tax policy Comparative Advantage for a trade tariff Comparative Advantage for an inflation model Comparative Advantage for a labor market Comparative Advantage for a game-theory standoff

Other ways to simulate a business cycle

Supply & Demand for a business cycle Price Elasticity for a business cycle Monopoly Pricing for a business cycle Cobb-Douglas for a business cycle Lorenz & Gini for a business cycle Laffer Curve for a business cycle

Frequently asked questions

How do I simulate a business cycle?: Open this page and use the live Comparative Advantage tool below — set your inputs and the simulation runs instantly in your browser using real numerics. No install, no account needed.
Is it free?: Yes. The simulation runs free in your browser. A one-time unlock or a Pro plan adds advanced parameters, saved presets, data import, and clean exports.
Can I use my own numbers?: Absolutely — every input is adjustable, and with data import you can drive a business cycle from your own measurements.