ABSTRACT
All the innumerable exchanges which we can observe in an exchange economy in each period constitute in their totality the external form of the circular flow of economic life. There is a contrast between them which we frequently witness in economic life in the personal opposition between the technical and the commercial manager of an enterprise. From our assumptions it also follows that the quantity of labor is determined by the given circumstances. If we consider people as consumers of these other things, however, we can see still more clearly the way taken by individual goods in the circular flow. It follows, again from the fact that all goods find a market, that the circular flow of economic life is closed, that the sellers of all commodities appear again as buyers in sufficient measure to acquire those goods which will maintain their productive equipment in the next economic period at the level so far attained, and vice versa.
