The circulation of the Arctic Ocean has traditionally been studied as a two-layer system, with a wind-driven anticyclonic gyre in the surface layer and a cyclonic boundary current in the Atlantic Water (AW) layer, primarily forced remotely through inflow and outflow to the basin. Here, an idealized numerical model is used to investigate the interplay between the dynamics of the two layers and to explore the response of the circulation in each of the layers to a change in the forcing in either layer. In the model, the intensity of the circulation in the surface and AW layers is primarily set by the ocean surface stress curl intensity and the inflow to the basin, respectively. Additionally, the surface layer circulation can strongly modulate the intensity of the intermediate layer by constraining the lateral extent of the AW current on the slope. In contrast, a change in the AW current strength has little effect on the surface layer circulation. The intensity of the circulation in the surface layer adjusts over a decade, on a time scale consistent with a balance between Ekman pumping and an eddy-induced volume flux toward the boundary, while the circulation in the AW layer adjusts quickly to any change of forcing (;1 month) through the propagation of boundary-trapped waves. As the two layers have different adjustment processes and time scales, and are subject to forcing that varies on all time scales, the interplay between the dynamics of the two layers is complex, and more simultaneous observations of the circulation within the two layers are required to fully understand it.