Looking deeper into the circular flow of economic activity, the author considers the components and course of this activity, looking closely at the series of periodic metamorphoses of economic categories that unfold normally under appropriate condition. Here, Rohatinski shows that each metamorphosis comprises two core levels: the economic event and the economic process. The set of economic events experienced by an individual or entity makes up the entirety of that subject's economic activity, while economic processes entail a set of functionally related economic events. The author argues that these processes are not a mechanical sum of economic events, but rather dependent on the functional relations established among them.