Economics Essay Example | Topics and Well Written Essays - 750 words - 13

Economics - Essay Exampletes are monitored and patterns are formed depending on the changes within the put those that monitor the send trying to detect and understand the ways that the levels increase or reduce, or why there are so many or so few people that are pink-slipped and to the reasons behind those factors.The inflation rate is the measure of the increase of a price index. The rate of decrease in the power of purchasing is shown to be equal, or within the same range as the increase of a price index. The elicit rate of an item, service, or monetary loan is the percentage of the principle that is paid as interest over a specific duration of time. The interest is involved in the inflation rate of an item as it adds or subtracts from the overall price index.The circular merge diagram illustrates the interaction of households, government, and logical argument by showing how separately of them influence the other and progress the workings of each other. The diagram shows th e string reaction that they all cause for each other, how the individual benefits the whole. The clockwise flow of the products, goods, and services are every bit balanced by the counterclockwise flow of payments everything is done in a pattern that can decrease or increase. Households purchase from bloodes that get their products from their producers. The government falls into place when they charge taxes on the items being produced by companies and bought by consumers, or the households. Firms that are involved in this circle make factor payments, which include wages, interest payments, rent, and royalties in exchange for their labor services and any resources that they may buy.The circular flow diagram shows how each factor of the chart needs each other factor to function properly and to maintain business it shows action and reaction in regards to consumerism. The circular flow chart is given its name because of this pattern, the continuous flow that these factors involve thems elves and each other