circular flow

Examples of circular flow in the following topics:

• The Circular Flow Model

  • The basic circular flow model consists of two sectors that determine income, expenditure, and output.
  • The factor owners spend the income on goods which leads to the circular flow of payments .
  • This circular flow is ongoing between households and firms.
  • The circular flow model shows the flow of payments between households and firms.
  • State the function of the circular flow diagram and the production possibilities frontier

• The Circular Flow and GDP

  • In economics, the "circular flow" diagram is a simple explanatory tool of how the major elements in an economy interact with one another.
  • The continuous flow of production, income and expenditure is known as circular flow of income.
  • The circular flow involves two basic assumptions:
  • Goods and services flow in one direction and money payment flow in the opposite or return direction, causing a circular flow.
  • The circular flow is a simplified view of the economy that provides an ability to assess GDP at a specific point in time.

• The Magic of the Economy

  • The complexity of the dynamics of human motivation and systems has led to the establishment of assumptions that form the basis of the theory of consumer and firm behavior, both of which are used to model circular flow interactions within the economy .
  • An understanding of how wages and consumption flow between consumers and producers provides agents with an ability to understand the symbiosis of the relationship rather than fixating on the contentious components that surface from time to time.
  • An understanding of the ebb and flow of the economy through the boom and bust of the business cycles, creates the potential for emotional balance by reminding agents to limit desperation in downturns and exuberance in expansions.
  • For example, the circular flow diagram displays the economic framework related to the dynamic interconnectedness of economic agents.
  • In the graph above the display is limited to households and firms but other depictions of circular flow incorporate the government and international trading partners.

• Defining Macroeconomics

  • Macroeconomics simplifies the complexities of the trading activities in an economy by distilling actions to primary participants and tracing the circular flow of activity between them.

• Problems

  • When water flows into a bathtub, a circular hydraulic jump forms around the incoming stream of water.
  • If you assume that the flow rate is constant and the flow is initially vertical, calculate the height of the water downstream of the jump as a function of the radius of the jump and the flow rate.

• Poiseuille's Equation and Viscosity

  • Turbulent flow is characterized by irregular flow of a fluid in which there are both inconsistent flow patterns and velocity variations throughout the volume of the fluid in motion.
  • Analysis of turbulent flow can be very complex and often requires advanced mathematical analysis to simulate flow in systems on a near case-by-case basis.
  • Laminar flow consists of a regular-flow pattern with constant-flow velocity throughout the fluid volume and is much easier to analyze than turbulent flow.
  • This figure (see ) gives a representation of the relative magnitudes of the velocity vectors of each of these layers for laminar fluid flow through a circular pipe, in a direction parallel to the pipe axis.
  • Laminar fluid flow in a circular pipe at the same direction.

• Overview of Non-Uniform Circular Motion

  • Non-uniform circular motion denotes a change in the speed of a particle moving along a circular path.
  • What do we mean by non-uniform circular motion?
  • The answer lies in the definition of uniform circular motion, which is a circular motion with constant speed.
  • It follows then that non-uniform circular motion denotes a change in the speed of the particle moving along the circular path.
  • This means that the radius of the circular path is variable, unlike the case of uniform circular motion.

• Blood Flow

  • Blood flow is the continuous running of blood through the cardiovascular system, which consists of the vessels and the heart.
  • Blood flow is the continuous running of blood through vessels in the cardiovascular system (the mammalian cardiovascular system is shown in ).
  • In microcirculation, the properties of the blood cells have an important influence on flow.
  • Keep in mind that both circular paths are working simultaneously and not in a sequential manner as the numbering in the illustration might suggest.

• Circular Motion

  • Uniform circular motion describes the motion of an object along a circle or a circular arc at constant speed.
  • Therefore, uniform circular motion indicates the presence of a net external force.
  • The direction of the velocity along the circular trajectory is tangential.
  • The equation for the acceleration $a$ required to sustain uniform circular motion is:
  • In uniform circular motion, the centripetal force is perpendicular to the velocity.

• Elastic Arteries

  • In these large arteries, the amount of elastic tissue is very considerable and the smooth muscle fiber cells are arranged in 5 to 7 layers in both circular and longitudinal directions.
  • Arterial elasticity gives rise to the Windkessel effect, which through passive contraction after expansion helps to maintain a relatively constant pressure in the arteries despite the pulsating nature of the blood flow from the heart.
  • Additionally, the elastic recoil helps conserve the energy from the pumping heart and smooth the flow of blood around the body through the Windkessel effect.