The Intrinsic Cyclicality of the Productive Process

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 

 

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