\usepackage{pstricks, pst-node}
\psset{arrows=->, labelsep=3pt, mnode=circle}
\begin{document}
\begin{psmatrix}[rowsep=20pt, colsep=28pt]
A & B \\
$\sqrt{\frac{x+y}{z}}$ & D
\psset{linestyle=dotted}
\ncline{1, 1}{1, 2}\naput{\emph{firstly}}
\ncline{1, 2}{2, 2}\naput{\emph{next}}
\ncline{2, 2}{2, 1}\naput{\emph{then}}
\ncline{2, 1}{1, 1}\naput{\emph{last}}
\nccurve[ncurv=2,
linestyle=solid, angleA=90]{1, 1}{2, 2}
\end{psmatrix}
\end{document}