Google
Tuesday 
October 19, 2021 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
X-AXIS: In a graph, this is one of two lines that intersect at a right angle at their origins. This is the "horizontal-axis" that runs from right and left. In most analyses, the variable measured on the X-axis is consider to be the independent variable.

Visit the GLOSS*arama

Most Viewed (Number) Visit the WEB*pedia

Lesson Contents
Unit 1: Basic Flow
  • Overview
  • Four Sectors
  • Three Markets
  • The Physical Flow
  • The Payment Flow
  • Unit 1 Summary
  • Unit 2: Financial Markets
  • The Paper Economy
  • Saving
  • Investment
  • Unit 2 Summary
  • Unit 3: Government
  • What It Does
  • Taxes
  • Government Purchases
  • Government Borrowing
  • Unit 3 Summary
  • Unit 4: Foreign
  • Foreign Trade
  • Exports and Imports
  • Unit 4 Summary
  • Unit 5: Real World
  • Expenditures
  • Production And Income
  • Investment
  • Government Spending
  • Saving
  • Unit 5 Summary
  • Course Home
    Circular Flow

    This lesson introduces the circular flow model of the macroeconomy. The circular flow is a simple model based on the buying and selling relation between the household and business sectors which occurs through the product and factor markets. As a bonus, we complicate the simply circular flow model, by including the government and foreign sectors, and the financial markets. This lesson introduces several important macroeconomic concept, but more importantly, provides a useful model for interpreting macroeconomic activity.

    • In the first unit, we get an introduction to the simplest circular flow model that includes the household and business sectors and the product and factor markets.
    • The second unit builds on the simple model by introducing the financial markets, which highlights the importance of household saving and business investment.
    • The circular flow is expanding further in the third unit, with the introduction of the government sector, which highlights how taxes are diverted away from the household sector.
    • The fourth unit adds one more sector to the circular flow model, the foreign sector, which illustrates the roles played exports and imports.
    • The fifth unit wraps up this lesson by showing how several key measures of production and income revealed in the analysis of gross domestic production related to the circular flow.

    BEGIN Lesson =>


    <=PREVIOUS Lesson | NEXT Lesson =>

    SCIENTIFIC METHOD

    A structured way of investigating and explaining the operation of the world by testing and verifying hypothesized relations. The scientific method is a process of discovery, a method of explaining the way the world operates. Positive economics is the application of the scientific method to economic analysis.

    Complete Entry | Visit the WEB*pedia


    APLS

    BROWN PRAGMATOX
    [What's This?]

    Today, you are likely to spend a great deal of time strolling through a department store hoping to buy either a coffee cup commemorating last Friday (you know why) or a wall poster commemorating the first day of spring. Be on the lookout for mail order catalogs with hidden messages.
    Your Complete Scope

    This isn't me! What am I?

    The average length of a "business lunch" is about 36 minutes.
    "Think not of yourself as the architect of your career but as the sculptor. Expect to have to do a lot of hard hammering and chiseling and scraping and polishing. "

    -- B. C. Forbes, founder, Forbes magazine

    DRR
    Discounted Rate of Return
    A PEDestrian's Guide
    Xtra Credit
    Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

    User Feedback



    | AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
    | About Us | Terms of Use | Privacy Statement |

    Thanks for visiting AmosWEB
    Copyright ©2000-2021 AmosWEB*LLC
    Send comments or questions to: WebMaster