The stability of stationary equilibria under genetic-algorithmadaptation is studied in an overlapping-generations economy with aunique, monetary steady-state and two-period cyclic equilibria.Agents use the genetic algorithm to update their labor-supply decisions. The results of simulations and the analysis of thedynamics show that the two-period cycle is stable and that thesteady-state equilibrium is unstable under genetic-algorithmadaptation. The dynamics are driven primarily by the wealth andsubstitution effects that lead to thealgorithm's convergence to the two-period cycle.