AXEC provides the correct formal foundations of theoretical economics.
The evolving production-consumption economy is given with the Starter Set which consists of axioms and definitions
![Unitcircle_new.png](https://static.wixstatic.com/media/774c5e_384d6e81cb5d455d8f458f37fa7a8744~mv2.png/v1/fill/w_306,h_285,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/Unitcircle_new.png)
![AXEC04_new_100.png](https://static.wixstatic.com/media/774c5e_0c730810bfb34e809cd2fc07cb58a2b0~mv2.png/v1/fill/w_347,h_130,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/AXEC04_new_100.png)
Y total income, W wage rate, L labor input, D dividend, N number of shares, O output, R productivity, EC consumption expenditures, P price, X quantity bought, Z placeholder, Q profit (total, monetary, nonmonetary), S saving.
In the path representation of the economy (right), the seven elementary variables run through t periods. In the unit-circle representation (left) holds market-clearing X=O, budget-balancing EC=Y, and DN=0. By consequence, Qm=0.
![](https://static.wixstatic.com/media/774c5e_e89fb16f6a784117b83061004cc852de.png/v1/fill/w_292,h_259,al_c,q_85,usm_0.66_1.00_0.01,enc_auto/774c5e_e89fb16f6a784117b83061004cc852de.png)
At first glance, it is not immediately obvious what the axioms say. This is a quite normal effect. On closer inspection, though, axioms have in most cases been found to be exceedingly useful. As a matter of fact, a consistent set of axioms is indispensable as an analytical steppingstone. Nobody can do science without clearly stated premises. This is the prime requisite. Therefore, the selection of axioms is all-important. The AXEC axiom set is new in theoretical economics. Every single axiom is objective and elementary — and this is exactly as it should be.
Axioms define a Paradigm. The AXEC macrofoundations fully replace the failed Walrasian microfoundations and the failed Keynesian macrofoundations.