A flow curve can refer to either a graph showing the relationship between dynamic viscosity and shear rate of a fluid in fluid mechanics, or a graph showing the relationship between pump volume flow and pump head. The dynamic viscosity measures a fluid’s resistance to flow, while shear is the pressure experienced by a fluid […]
A cooling curve is a graph used to plot the progress of a cooling substance, with time on one axis and temperature on the other. It may represent physical phase changes and is influenced by factors such as initial temperature and environment. The simplest method of creating a cooling curve involves using a thermometer, but […]
A demand curve shows the relationship between price and quantity of a product that consumers are willing to buy, helping companies determine profitability. The curve is formed by plotting points of price and quantity, with all demand curves sloping downwards. A change in slope due to factors other than price is called a “change in […]
A forward curve is a representation of forward rates with the same maturity date over a specified period. It is used to manage portfolio risk, determine present value, and offset commodity price fluctuations. The shape of the curve indicates market strength or weakness. Caution is advised when developing a forward curve. A forward curve is […]
The Lorenz curve is a graphical representation of inequality, often used in economics to show income distribution. It was invented in 1905 by Max Lorenz and is represented on a two-dimensional graph with the x-axis representing individuals and the y-axis representing a resource or characteristic. The Gini coefficient is used to summarize the inequality represented […]
The decaying curve of oil production follows a bell curve pattern, with the peak representing maximum production. The curve can be altered by factors such as government regulations, alternative energy sources, and enhanced oil recovery methods. The US Energy Information Administration predicts a steeper decline curve for oil consumption, with world oil consumption likely to […]
The aggregate demand curve summarizes the total demand for goods and services in an economy, while supply and demand theory attempts to find the equilibrium price. The consumer price index is used to measure GDP and calculate an average price for necessary expenses. The entire demand curve can shift left or right due to changes […]
The contract curve is a point where a transaction is no longer profitable for both parties. It is used to determine when to pursue a deal and when to move on. It applies to different financial scenarios, including investing and day-to-day purchases. A contract curve is one of several economic curves used to illustrate the […]
An inverted yield curve occurs when short-term investments pay higher interest rates than long-term investments, indicating a lack of confidence in the long-term economic climate. It may predict a recession, as seen in 2006 before the 2007 recession. However, other factors should also be considered. A flat yield curve often precedes an inverted yield curve. […]
Yield curve analysis can be approached by studying the current shape and past pattern of the curve, comparing different bonds and issuers, using the expectations theory model, analyzing the spread between notes, and determining the investor’s objective. Multiple methods may be used to find the best course of action. There are a couple of different […]
The normal yield curve shows the relationship between interest rates and the time to maturity of an investment. It is upward sloping and indicates that investors expect to be compensated for the additional risk associated with investing money over longer periods of time. There are three types of yield curves: normal, inverted, and flat. The […]
The Laffer curve shows the relationship between tax rates and revenue, with a maximum point known as “T.” Finding the exact rate for T is difficult for governments, and the curve is often mischaracterized as claiming that reducing tax rates will always increase revenue. Wealth accumulation is the driving mechanism behind the curve, and it […]
Aggregate supply refers to the total supply of goods and services that firms in a national economy will sell at a specific price level and on time. There are two types of aggregate supply curves, short-run and long-run, which are affected by input costs and economic growth. The long-run curve is a vertical line, while […]
The flattening of the yield curve occurs when short-term bonds have similar interest rates to long-term bonds, indicating economic problems and a possible recession. Short-term bonds have lower interest rates due to lower risk, and government bonds offer low yields. In times of economic uncertainty, investors move to safer investments, causing a flattening of the […]
The phrase “ahead of the curve” is an idiom meaning someone who is ahead of others in learning or knowledge. It comes from plotting test results on a graph, where those on the right side have a better understanding of the material and are “ahead of the curve.” Idioms are very common in the English […]
A learning curve measures how quickly a skill can be mastered, often shown as a graph. German psychologist Hermann Ebbinghaus coined the term in the late 19th century. Steep curves imply a large gain in knowledge, while flat curves are spaced out over time. Different people learn at different rates, but consistent failure to meet […]
A frequency response curve is used by stereo component manufacturers to determine the quality of sound reproduction. It shows the amplitude over frequency, with the vertical axis representing sound level in decibels and the horizontal axis representing frequency in hertz. Bandwidth is the highest to lowest frequency signal output demonstrated by a component, and the […]
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