Economic Model - 2

I need to start with something more simple than the model I proposed in my last blog. I will add more entities later. To start off, I am going to say there are only farmers and masseurs. The farmers produce wheat to eat and the masseurs give massages to ease the body as a service. Let me say there are 10 farmers and 10 masseurs in the economic exchange. The farmers normally produce 20 bushels of wheat. Normal consumption per person is 1 bushel of wheat. Normally the farmers would consume 10 bushels and trade 10 bushels to get massages. The masseurs get 10 bushels to consume by giving massage service to the farmers. This barter exchange is only between two entities and so don't need a monetary instrument but I am going to introduce one to describe this transaction using money. We have to seed this system with money intially so that people will have money to use for transactions. We have to establish a time period to track the transactions and it will be assumed to be a normal year. I am going to give each farmer one US$ and give masseurs nothing intially. The masseurs have to earn money from the farmers by giving service to them and then use that money to buy wheat from the farmers. We need one more entity called the Bank - this bank is both a normal bank and a Federal reserve. In the course of a year, if the farmers spend all their money on masseurs, they would give masseurs $10. The masseurs would also buy 10 bushels of wheat by paying the farmers $10 for a bushel unit price of $1/bushel. In a GDP sense, we have had $20 worth of GDP in this economy. The farmers can make more bushels than 10 by working a bit harder. If the masseurs provide the same kind of massages every year, farmers may reduce their massages as it becomes more mundane. The masseurs try to improve their massaging service every year to keep the farmers coming to their shops.