What is stock and flow variables in economics?
A flow variable is a variable that is measured over a specific period of time. A stock variable is a variable that is independent of time. Income is an example of a flow variable.
What is an example of a stock variable?
A stock is a quantity which is measurable at a particular point of time, e.g., 4 p.m., 1st January, Monday, 2010, etc. Capital is a stock variable. Examples of stocks are: wealth, foreign debts, loan, inventories (not change in inventories), opening stock, money supply (amount of money), population, etc.
What is the difference between stock and flow explain with example?
Both the stock and flow are interdependent on each other….Difference between stock and flow.
| Stock | Flow |
|---|---|
| Stock influences the flow, as such greater amount of capital will lead to greater flow of services | Flow influences the stock, as in increased flow of money supply in an economy results in increase in the quantity of money |
| Examples |
What are the flow variables?
A flow variable is a quantified variable that is measured over a specified period of time. It is time bounded and expressed as per unit of time. National income, investment in the economy and aggregate supply- all are flow variables since they relate to a period of time.
Is savings a stock or flow variable?
Wealth is measured in dollars at a point in time and is a stock variable. Saving is measured in dollars per unit time and is a flow variable.
Is money supply a stock or flow?
A flow is any quantity that must be measured over a period of time. Income is a flow. A stock is any quantity that is measured at a single instant in time. The money supply is a stock.
Which of the following is an example of flow variable?
National income, investment in the economy and aggregate supply- all are flow variables since they relate to a period of time.
Is money supply a stock or flow variable?
Because money supply is measured at a particular point of time,it is a stock variable. …
Is money a stock variable or flow variable?
Which of the following is an example of flow variables?
What is a stock variable?
A stock variable is a quantified variable that is measured at a particular point of time. Since, stock of capital, total money supply, and number of persons employed are a quantities measured at a particular point of time, these are stock variables.
Is unemployment a stock or flow variable?
Unemployment is a stock measure not a flow measure. It is the total number, a proportion of the labor force at a point in time. The unemployment rate may stay the same but may not include the same individuals. People flow in and out.