Wikipedia talk:Featured picture candidates/Image:Circulation in macroeconomics.svg

The use of a circulation or flow diagram in macroeconomics has by implication a basic model that represents the macroeconomics system. This system comprises a number of role-playing agents or entities and a number of mutual or double flows of money and their reciprocal flows of goods, services, valuable legal documents, etc. (which oppose the particular money-flow). The flow model used here does not strictly answer these simple and necessary requirements, in that there is confusion between the kind of flow, the non-mutual nature of the flow and the introduction of the business location, which has no relevance. For a closed social system (without including the Rest of the World) there are at least 6 entities that need to be included together with at least 19 mutual or double flows. See the illustrated model with flows. File:DiagFuncMacroSyst|right|.pdf Only 4 of the agents appear in this diagram which is regarded as being insufficiently comprehensive. It fails to properly represent our social system and the circulations within it.Macrocompassion (talk) 07:42, 17 August 2011 (UTC)