Our **framework** is the **Macroeconomic Field Theory** represented by the two operative circuits connected by “crossovers” shown in the Diagram of Rates of Flow. (See above right and CWL 15, 55) Important theoretical components of the analysis are** a)** the **abstract explanatory formulation** based on the **concomitance** of basic Expenditures with the basic Outlays, and **b)** the **correlation** and** normative concomitant variation** of the **magnitudes and frequencies** of flows of products with the **magnitudes and frequencies** of payments.

*P’Q’ = p’a’Q’ + p”a”Q” *(CWL 15, 156-62)

*P’Q’ = p’a’Q’ + p”a”Q”*(CWL 15, 156-62)

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