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It may be appropriate to clarify certain definitions in a simple manner if feasible . If one considers economics from a mathematical point of view we will require some basic definitions. But the basic unit of measurement can not be taken for granted. To measure geographic distance using one base unit of length = 1 meter. From 1889 to 1960 used a meter prototype, a rod made of an alloy of platinum and iridium. Nowadays, the frequency stabilized laser measures the length of the path that light traveling in free space between 1 / 299,792,458 seconds (the laser frequency f times the vacuum wavelength λ). Similarly, in economic theory the difficulty of constructing a system for measurement is obvious. One might assume that we measure economic distance in money or capital, such as crowns, pounds or dollars. But it is not so simple. But for the time being, one can assume the following units: m (monetary unit), and t, time: in the economic system of measurement, it is advisable to use a basic monetary unit used in the current systems as long as there exists no accepted international convention. A convenient basic unit of time is hours. The dimension of velocity is then [mt-1], acceleration then, as usual, the dimension [mt2]. "Price" P for a utility is then representing an economic force, and therefore economic mass (m = Q/g=k) is defined as [km-1t2], but we still need to determine the unit of mesurement (i.e the number k), which is not always easy in the economic context - if it is possible to find a practical unit. But anyway, it is much more important to try to find a way out then continue with the ongoing uncertainty i every economic model. It also becomes easier to understand prices if a product's price indicates the weight, which it is not the same everywhere, but the more economic globalization the price difference of a commodity will only depend on the geographic distance. The price indicates, so to speak, the mass content of a product (utility), and is thus a simple way to describe combination of prices of materials, muscular activity, technology, etc. The product's price P expresses thus the resultant of pricevectors p1.. pn. (Obviously, it is entirely possible to use the second as the basic unit of time, but the question is whether that would be a convenient basic unit in economics). See prices. Please leave your comments, suggestions.
Area of a circle - levels of income
Looking at income as a circle then one turn represents a period. The Income radius of 24 h can be estimated as the ratio (I/365)/(2π), eg (125764/365)/2π = 54.838 and then 54.838 * 2π α 344.56, which in this case gives a different value of the radius than using the formula gien in the table. The area of the circle with a radius of 54.838 is 9447.5 but according to the square-cube law we get the total area (annual income): (200.0804/54.838)2 * 9447.5 = 125,764.8.
According to the formula m × a = P gives m × wa/2 = income per hour = P. The frequency is also different, for example, 2πf = angular velocity.
Ex: 2π × 0.01142 = 0.071754 radians, 4.11 °.
Difference between the lowest and highest income in the table corresponds to 1.96° per hour.
For a full period (24 h), it will be 15.9° to 23.82°
The diagram below shows how income levels change with different interest rates. What is most striking in the charts is how interest rates affect inertia of the economic system. At a rate of 1 percent, we see that the brown horizontal line is well below the blue horizontal line, which represents an income level in the middle. The economic mass increases extremely sharply, when the rate is less than 2.6 percent. The mass is as we know, a measure of inertia. When the interest rate increase also the inertia of the system reduces, and when the interest rate is greater than 2.6 percent, which corresponds to the economic system natural frequency (to four decimal places 2.6526), the blue line (this income is in the middle) is beneath the brown line. As long as incomes lies on the red curve it is only affected by the forces that is reflected through the interest rate. If no other intervention made in the economic system - that is, if the market should regulate itself - it leads eventually to collapse. Other prizes will be follow the same trend.
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The diagram to the right shows a picture of the tranmissibility curve. The left part of the curve shows the price or income change with respect to interest rate. It is the same curve as in the diagram 1-4. Therefore all the prices lies on the curve if no other force acts upon the prices - ie on the curve leading to "disaster". To prevent this scenario, prices mitigated by other means - and the only option left is government intervention, that literally puts an end to the emergency scenario.
In order to show periodic fluctuations in the price, it is perhaps best illustrated by the following graph, showing the differences between an interest rate of 3 percent (Figure left) and a rate of 1 percent. Here, it is fairly clear how the period is considerably longer with a low interest rate, and it also shows how inertia increases by lowering interest rate .
