Circular flow of income

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The web hosts a wealth of material on the circular flow of income and spending.

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The circular flow of income

The circular flow of income and spending is a first "model" of the macroeconomy, usually taught early on in the economics or macroeconomics principles course. Considered a simple and undemanding concept, students tend to forget the circular flow once they move on to more complex and challenging models. This is unfortunate, because the circular flow model generates important insights that remain valid and come handy at all skill levels.
				This interactive applet lets you explore many useful implications of the circular flow of income model. You may conduct your own simulation experiments, or follow the exercise devised to guide you towards a series of important insights.

			This section of eur macro tutor provides a brief introductionary movie to the circular flow of income and spending, and an interactive applet that lets you experience the laws that apply within this circular flow model, and how changes in behaviour and policy affect the width and the composition of the flow.
	This little movie covers the basics of the circular flow of income. It is meant either as an introduction for the novice, or as an effort to "bookmark" circular flow basics in your memory if you are already familiar with the concept.


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