Economic interrelations with LinkNotions
See how economy works.
USE the economic concept maps
For each notion (unemployment, exchange, prices, …), the diagrams answer the following two questions:
1. What happens if the notion increases or decreases? (e.g.: if prices rise or fall)
- “Prices” has an influence in the same direction on “Production Cost”. This means that if prices rise, production costs rise and vice versa.
- “Prices” has an influence in the opposite direction on “Demand”. This means that if prices rise, demand falls and vice versa.
2. What are the elements that increase or decrease the notion? (e.g.: demand, productivity, …)
- “Prices of imported goods” have an influence in the same direction on “Prices”. This means that if prices of imported good rise, prices rise and vice versa.
- “Productivity” has an influence in the opposite direction on “Prices”. This means that if productivity rises, prices decrease and vice versa.
Film: How to read the world of economics? (10:33)
EDIT the economic concept maps of Linknotions
Why edit a diagram?
- To improve it; To complete it. To make it your own.
Here are 3 types of people who might be interested in editing a diagram:
- The researcher in economics to develop a circuit more and more coherent and complete in order to be able to discuss it with his collegues.
- The teacher who would like to discuss the interrelations in the diagram in class and modify them based on the discussions.
- The journalist who would like to modify and complete the diagram as his/her research progresses, use the diagram during the writing of articles and publish it on the site of a newspaper.
How to proceed?
- Get a LinkNotions account. You might want to start with a free trial. Click the button at the right!
- Then, you can copy the diagram into your LinkNotions account and modify it. To do so, enter a diagram and click the green button (“edit this diagram” on the top right of the diagram. A window opens. Click “Create”. A copy will be created into your account. It is opened in edit mode. You now can edit this copy.
What is a diagram of economics for?
The idea was to bring together in one diagram “all” economic phenomena and analyze their mutual influences in order to create
an interactive economic circuit showing the mechanisms in economics.
The question is always: which is the influence of an increase (or decrease) of an economic phenomenon on other economic phenomena?
Question : What will happen if the key interest rate is increased?
To get the answer, simply place the cursor on the bottom part of the notion “Key interest rate”. The tooltip will show the influences. If you click the bottom part of the notion, all notions affected will be highlighted.
So we have a complex interactive economic circuit that shows “all” direct and distant economic influences.
Each notion and each link (influence) is explained in the diagram. Clicking on the notion or the link allows you to see the corresponding information in the “Info” window.
Discover different diagrams explaining economic issues
CREATE your own interactive diagrams on other topics
To create a diagram from scratch, you only need a LinkNotions account. Enter your account and click “Create workspace.”