https://padlet.com/217179665/pwc1lsany5f3u3h3 Circular flow Model in COVID-19 pandemic en-us 2020-06-29 01:44:25 UTC 2024-05-28 01:09:10 UTC hello@padlet.com 217179665 https://padlet.com/217179665/pwc1lsany5f3u3h3/wish/642497167 The macroeconomy of the South African economy is explained through a diagram called the Circular Flow Model. This model is a visual representation of how money, capital, and other things transition from different sectors of our economy. In general, there are four different sectors: Households, the Factor market, Businesses, and the Production market. These four are all moving/flowing with one another, and they are constantly working together to put out products consumers will purchase, keep businesses operating, pay wages to labourers, etc. (Below is a visual of the Circular Flow Model). 

So, what happens when one part of this circular flow is disrupted? The easiest way to explain it is that it is like when someone has a clogged artery. When one of the sectors is unable to perform their task, the circulation of the economy slows down or stops, which can lead to terrible economic consequences for everyone.
Now, how does this apply to our current-day situation with the coronavirus? The coronavirus is the thing that is causing the clogging in the circular flow, and has led to a giant increase in people applying for unemployment, stock drops, and possible business closures. The virus impacts every sector of the circular flow.

What are your thoughts on this?]]> 2020-06-29 01:45:24 UTC https://padlet.com/217179665/pwc1lsany5f3u3h3/wish/642497167