Each week our model economy proceeds through the same sequence of actions consisting of
nine stages: 1) entry; 2) search and matching; 3) bond market trading; 4) labor and goods
market trading; 5) monetary policy; 6) match breakups; 7) fiscal policy; 8) exit; and 9) wage
and price setting. We believe that each of these 9 stages represents a process that is of central
importance to the functioning of a market economy. Our underlying strategy is to model
each process as simply as possible, that is, with unsophisticated yet plausible behavioral
rules that maintain the spirit of ACE modeling, while attempting to be roughly consistent
with mainstream macroeconomics. The rest of this sub-section sketches the protocol and
behavioral rules of the model. We refer the reader to AGH (2011) for the exhaustive details
of the algorithm that implements the model, further discussion of the behavioral rules, and
the way to incorporate a banking sector in the model.