Dynamics Within the Economy

Qualitative Chemical Analysis screenshot

EXPLORE a “circular flow model” of national accounting.


DISCOVER the relative contributions of businesses, government, and households to the U.S. Gross Domestic Product, Net Domestic Product, Domestic Income, Personal Income, Disposable Income, and other metrics of national wealth.


ENRICH macro-economics.


This title, with limited on-screen animation, is available only as software.



  • CIRCULAR FLOW MODEL of National Accounting
    • Components
      • Businesses
      • Government
      • Households
    • Sources (Nearly 20-Year Averages)
      • Survey of Current Business
      • Federal Reserve Bulletin
      • Economic Report of the President
      • Economic Indicators
    • Simplifications (Ex. Net Exports = 0)
    • Computer program allows user to advance, step-by-step, through the following transfers of wealth and then repeat the cycle.
    • In Terms of Spending
      • By Business: Gross Private Domestic Investment
      • By Government: Government Purchases (of Goods and Services)
      • By Households: Personal Consumption Expenditures
    • In Terms of Income
      • Of Businesses
        • Undistributed Corporate Profits
        • Consumption of Fixed Capital (Depreciation)
      • Of Government
        • Corporate Income Taxes
        • Indirect Business Taxes (Passed on to Consumers)
      • Of Households
        • Proprietors’ Income
        • Dividend Income
        • Interest Income
        • Rental Income
        • Compensation of Employees
  • NET DOMESTIC PRODUCT (NDP) Equals GDP Minus Depreciation
  • DOMESTIC INCOME Equals NDP Minus Indirect Business Taxes
  • PERSONAL INCOME Equals Households’ Share of GDP Income ...
    • Minus Social Security Contributions, to Government
    • Plus Transfer Payments, from Government
  • DISPOSABLE INCOME Equals Personal Income Minus Personal Taxes, from Households to Government
  • Personal Savings, from Households (through savings institutions) to Businesses (via lending), then returns distribution of wealth to original amounts — in accounts of Businesses, Government, and Households — and thus allows repeat of Circular Flow Model.

Sample Material


© Copyright 1992 Douglas Drenkow. All Rights Reserved.

Sample Screenshots: Gross Domestic Product as Either Spending by or Income of Businesses, Government, & Households


Click either image for full-size screenshot.


Gross Domestic Product: Spending by Businesses, Government, & Households


Gross Domestic Product: Income of Businesses, Government, & Households


Back to Overview and Sample Material Back to Overview and Sample Material

Download and Run the Application


Downloadable & Printer-Friendly

PDF Icon  To view or print PDF documents you will need Adobe Reader software, pre-installed on most computers and available for free download.


Before you print, please consider our environment.


If you like this, please let others know. Do you have any comments or questions for me? I’m also on ...

Cell: 310-570-8930


If your Internet browser does not display special characters (such as “é” or “©”) then enable “Unicode (UTF-8) encoding”

or get the newest version of Internet Explorer, Firefox, Chrome, Safari, Opera, or whatever browser you use.


Valid XHTML 1.0 Transitional