ABSTRACT
The macrodynamic behavior of an advanced market economy will be “explained” by constructing a model, based on a set of posited theoretical relationships, that can be used to simulate the actual behavior of such a system over time. The economic system to be modeled has the following characteristics: its output consists of material goods that are not only “allocated” or distributed, but also first produced; the firms that, collectively as industries, produce those material goods are linked together through markets. The megacorp will be viewed as the representative firm in the technically more advanced sectors of the economy, those in which just a few large firms dominate the market. Economics as an academic discipline is defined not only by its subject matter but also by the analytical techniques used to establish the validity of the propositions that constitute the theoretical core of the discipline.
