Are flags supposed to be animated/ physics objects?

Just got GSC2013. I saw a video and flags appeared to be flapping in the wind.. I've seen brazil flags on the interlagos historic and they are static/flat and look slightly odd. No biggie - but wondered if I was the only one. Are crowds also static?

Sorry if this is common knowledge - really enjoying it

Edit - actually they are moving (not like I saw on youtube). I drove right up to them and they are slowly moving. They just look a little odd - never mind. Sorry to create a pointless thread

Edit 2 - I just noticed that time multiplier only affects the race stage. The effect is that the flags animation time multiplies too. So it totally makes sense that the devs have the flags slow at 1x speed.
 
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