1  REM  ****  HP BASIC PROGRAM LIBRARY  *******************************
2  REM
3  REM        CIRFLW:   CIRCULAR FLOW MODEL
4  REM
5  REM        36632 REV  A  6/73
6  REM
7  REM  ****  CONTRIBUTED PROGRAM  ************************************
50  REM CIRFLW-COPYRIGHT 1970, POLYTECHNIC INSTITUTE OF BROOKLYN
100  REM THIS PROGRAM BY JAMESEDER, NORTHPORT HS, 8/68 
105  REM  REVISED BY C.LOSIK  8-27-70 
110  REM IT'S DESIGNED TO DEMONSTRATE THE CIRCULAR FLOW OF 
120  REM GOODS AND SERVICES IN THE U.S. ECONOMY. 
130  REM THE FOLLOWING ARE DEFINITIONS OF THE SYMBOLS USED:
140  REM PER CAPITA INCOME IS I,I0;PROPENSITY TO CONSUME IS C,C0;
150  REM PAYMENT FOR GOODS + SERVICES IS P,P0;VALUE OF GOODS IS
160  REM V,V0;PERCENT OF PRODUCTIVE SERVICES IS S,S0;
170  REM RETURN INCOME IS R,R0 
180  PRINT "THE FOLLOWING WILL SIMULATE THE EFFECT ON THE"
190  PRINT "CIRCULAR FLOW OF GOODS, SERVICES AND MONEY WHEN"
200  PRINT "ALL THE INDIVIDUALS IN THE ECONOMY SPEND ALL THEIR"
210  PRINT "INCOME.  IF THE AVERAGE INCOME IS $2,5OO AND"
220  PRINT "EVERY INDIVIDUAL SPENDS 100 PERCENT OF IT,"
230  PRINT "EACH INCOME WILL BE IN EQUILIBRIUM--THEY WILL"
240  PRINT "EARN BACK FROM BUSINESS $2500"
250  PRINT "THE FOLLOWING WILL BE A COMPUTATION OF THE"
260  PRINT "VALUES IN THE CIRCULAR FLOW"
270  READ I,C,I0
280  DATA 2500,1,2500
290  PRINT 
300  PRINT "AVERAGE INCOME-";I
310  PRINT 
320  PRINT 
330  PRINT "PROPENSITY TO CONSUME IS"
340  PRINT "100 PERCENT"
350  LET P=C*I
360  PRINT 
370  PRINT "INDIVIDUAL'S PAYMENTS FOR"
380  PRINT "GOODS AND SERVICES-";P
390  LET V=P
400  PRINT 
410  PRINT "THE VALUE OF GOODS"
420  PRINT "AND SERVICES-";V
430  PRINT 
440  PRINT 
450  PRINT "THE PERCENT OF PRODUCTIVE"
460  PRINT "SERVICES BUSINESS WANTS"
470  PRINT "IS 100 PERCENT."
480  PRINT 
490  PRINT 
500  PRINT "THE RETURN INCOME"
510  PRINT "TO INDIVIDUAL-2500."
520  PRINT 
530  PRINT "THE ABOVE REPRESENTS THE AVERAGE OF ALL INDIVIDUAL"
540  PRINT "INCOMES IN THE ECONOMY.  SINCE ALL INDIVIDUALS CONSUMED"
550  PRINT "100 PERCENT OF THEIR INCOME,THEIR RETURN INCOMEIS"
560  PRINT "100 PERCENT OF THEIR PREVIOUS INCOME. THIS HAPPENS"
570  PRINT "BECAUSE BUSINESS NEEDS 100 PERCENT OF THE PREVIOUS"
580  PRINT "PRODUCTIVE SERVICES TO MEET THE DEMAND."
590  PRINT 
600  PRINT "THE RETURN INCOME TO THE INDIVIDUAL FROM"
610  PRINT "BUSINESS DEPENDS TO A LARGE EXTENT ON HOW"
620  PRINT "MUCH ALL INDIVIDUALS SPEND(THEIR PROPENSITY TO"
630  PRINT "CONSUME).  COMMON SENSE TELLS US THAT IF AN IN-"
640  PRINT "DIVIDUAL SAVES PART OF HIS INCOME AND INVESTS IT"
650  PRINT "IN A BANK, HE WILL RAISE HIS INCOME BY MEANS OF"
660  PRINT "THE INTEREST ON HIS SAVINGS.  BUT IF ALL OR MANY"
670  PRINT "OF THE INDIVIDUAL CONSUMERS IN THE ECONOMY CUT"
680  PRINT "THEIR CONSUMPTION, THEN THE OVERALL RETURN INCOME"
690  PRINT "TO THOSE INDIVIDUALS WILL PROBABLY DROP."
700  PRINT "BY CHANGING THE PERCENTAGE OF YOUR PROPENSITY "
710  PRINT "TO CONSUME YOU CAN CHANGE YOUR INCOME."
720  PRINT 
730  PRINT "A PROPENSITY TO CONSUME OF 100 PERCENT WILL,"
740  PRINT "IN THIS SIMULATION, GIVE YOU A RETURN INCOME"
750  PRINT "EQUAL TO YOUR ORIGINAL INCOME.  ANY VALUE"
760  PRINT "MORE OR LESS THAN 100 PERCENT WILL CHANGE"
770  PRINT "YOUR RETURN INCOME."
780  PRINT 
790  LET N=1
800  PRINT "TYPE IN A VALUE FOR THE PROPENSITY TO CONSUME,"
810  PRINT "A PERCENTAGE MORE OR LESS THAN 100 PERCENT."
820  PRINT "PUT IT IN IN DECIMAL FORM (E.G. .75=75 PERCENT)"
830  PRINT 
840  PRINT "WHAT IS THE VALUE";
850  INPUT C0
860  IF C0<1 THEN 960
870  IF C0>1 THEN 1030
890  IF N=3 THEN 930
900  PRINT "WE'LL GO BACK"
910  LET N=N+1
920  GOTO 800
930  PRINT "EITHER YOU WERE CARELESS OR YOU WERE BEING "
940  PRINT "WISE. IN EITHER CASE, SUFFER THE CONSEQUENCES."
950  STOP 
960  PRINT "BECAUSE YOUR PROPENSITY TO CONSUME IS LESS THAN"
970  PRINT "YOUR INCOME, YOU ARE SAVING MONEY.  WE WILL ASSUME"
980  PRINT "THAT YOU DIDN'T PUT IT IN A BANK BUT"
990  PRINT "RATHER STUFFED IT UNDER YOUR MATTRESS, SO"
1000  PRINT "YOU WON'T RAISE YOUR INCOME WITH INTEREST"
1010  GOTO 1070
1020  PRINT 
1030  PRINT "BECAUSE YOUR PROPENSITY TO CONSUME IS GREATER"
1040  PRINT "THAN YOUR INCOME, YOU ARE BUYING ON CREDIT."
1050  PRINT "THAT MEANS YOU ARE BUYING NOW WITH WHAT YOU EXPECT "
1060  PRINT "TO EARN IN THE FUTURE."
1070  LET P0=I0*C0
1080  PRINT 
1090  PRINT "INDIVIDUAL'S PAYMENTS FOR"
1100  PRINT "GOODS AND SERVICES-";P0
1110  PRINT 
1120  LET V0=P0
1130  PRINT "VALUE OF GOODS AND SERVICES"
1140  PRINT "FROM BUSINESS-";V0
1150  LET S0=C0
1160  PRINT 
1170  PRINT "PERCENT OF PRODUCTIVE"
1180  PRINT "SERVICES IN DEMAND-";S0
1190  LET R0=I0*S0
1200  PRINT 
1210  PRINT "RETURN INCOME TO IN-"
1220  PRINT "DIVIDUAL-";R0
1230  PRINT 
1240  IF R0<2500 THEN 1270
1250  IF R0 >= 2500 THEN 1320
1260  PRINT 
1270  LET P2=INT(100-100*C0+.5)
1280  PRINT "YOUR RETURN INCOME"
1290  PRINT "HAS DROPPED THE FOLLOWING"
1300  PRINT "PERCENTAGE POINTS FROM"
1310  PRINT "100 PERCENT-";P2
1320  PRINT "IF YOU WISH TO PUT IN ANOTHER PERCENTAGE VALUE"
1330  PRINT "FOR THE PROPENSITY TO CONSUME, TYPE 0"
1340  PRINT "IF YOU WISH TO STOP THE PROGRAM, TYPE 1"
1350  INPUT W
1355  PRINT 
1360  IF W=0 THEN 800
1365  IF W <> 1 THEN 1320
1370  END 
