Abstract for:Application of System Dynamics in Senior High School Economics: J-curve effect

This article is from the perspective of system dynamics, and utilizes a software named “STELLA”, in-depth analysis of a common phenomenon in the macroeconomics-J curve effect, the conditions and factors, including the knowledge of Marshall-Lerner condition, the effect of depreciation of currencies on the prices of export and import, the influence of the revenue of imports and exports caused by the change on the price and quantity of the export and import, the effect on the country's balance of payments and prices because of the import’s and export’s revenue, the change of the prices of the export and import and the variation of the value of the currency, which are affected by the balance of payment. By means of Systematic thinking, these parameters are quantitatively analyzed; these factors are quantified; the model is established, and the relationship between them is found. Furthermore, the method of Systematic thinking allows us to better understand the implications of the J-curve effect.