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a common application for a circulator is as an inexpensive duplexer (a transmitter and receiver sharing one antenna). Figure 2 shows that when the transmitter sends a signal, the output goes directly to the antenna port and is isolated from the receiver. Good isolation is key to ensure that a high-power transmitter output signal does not get back the receiver front end as is governed by the return loss of the antenna. In this configuration, all signals from the antenna go straight to the receiver and not the transmitter because of the circular signal flow (remember the cup of water).
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