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Circular Flow: A Simple Model of the Economy
Debaere, Peter
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Circular Flow: A Simple Model of the Economy
Debaere, Peter Technical Note G-0596 / Published August 10, 2007 / 7 pages. Collection: Darden School of Business
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Product Overview

This note discusses circular flow. With a simple model, it is shown how changes in the components of expenditures affect overall income. The analysis is both graphical and algebraic.



Learning Objectives

The learning objectives are to refresh key concepts and tools from microeconomics and macroeconomics; emphasize the role of economics in the MBA curriculum; and show how analyzing economic agents as maximizers of profit and/or utility deepends one's understanding of the environment of the firm.


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  • Videos List

  • Overview

    This note discusses circular flow. With a simple model, it is shown how changes in the components of expenditures affect overall income. The analysis is both graphical and algebraic.

  • Learning Objectives

    Learning Objectives

    The learning objectives are to refresh key concepts and tools from microeconomics and macroeconomics; emphasize the role of economics in the MBA curriculum; and show how analyzing economic agents as maximizers of profit and/or utility deepends one's understanding of the environment of the firm.

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