Mathematical Modeling and Algorithms to Simulate The Economy ' s Behavior

Abstract—in this paper we are proposing continuous mathematical modeling for describing the economic behavior and the relations between its components, as a system of PDEs. We deduced two algorithmic procedures, which allow us to forecast and simulate the economic behavior as a whole (GDP) and the impacts of each component on the other components. We have shown results, which support our hypotheses. We introduced flow-charts for the algorithms and complete results as a simulation to clarify our progress. Through these algorithms we will be able to simulate the economy for any country or economic entity and allow the simulators to consider changes, and then they can notice the future results according to these changes. We have assumed a model for "The Unemployment" and how it changes according to the changes in the economic components.