The economy is composed of the production of two conceptually distinct, mutually-definitive types of goods. Depending on the context they may be named
- basic goods or surplus goods,
- consumer goods or producer goods,
- accelerated goods or accelerator goods,
- point-to-point goods or point-to-line goods.
An expansion of the surplus production function causes a later acceleration of the basic production function. First one surge, then later the other surge. Note the symbols for time (t) and (t-a) in the following formula, “the lagged technical accelerator.” (continue reading)
kn[f’n(t-a)-Bn] = f”n-1(t) – An-1 CWL 15, p. 37