A variable is a quantity which goes on to change and may assume different values. The variables may be the stock as well as the flows. The stock variables are those variables which do not have any time restriction. While the flow variables are those variables which are attached with the time element. As the weight of a car is a stock variables, while the speed of a car is a flow variables. In other words, the stock variable is a quantity which is measured at a particular time, while the flow variable is a quantity which is measured during some time period.
In macroeconomics we have a lot of stock and flow variables.
As, NI, consumption, savings, investment, rate of interest, etc. are the flow variables, while the supply of money, the deposit in the bank and the inventories, etc. are the stock variables. Again the supply of money on 1st July, 1994 will represent the stock, while the increase in the supply of money during the month of June will be the flow variables. Moreover, the amount of wealth possessed by a person represents the stock variables, while the income of a person will be the flow variables. The savings of a person at a particular time represent the stock while the savings made during some time period represent the flow variables.
In macroeconomics we have a lot of stock and flow variables.
As, NI, consumption, savings, investment, rate of interest, etc. are the flow variables, while the supply of money, the deposit in the bank and the inventories, etc. are the stock variables. Again the supply of money on 1st July, 1994 will represent the stock, while the increase in the supply of money during the month of June will be the flow variables. Moreover, the amount of wealth possessed by a person represents the stock variables, while the income of a person will be the flow variables. The savings of a person at a particular time represent the stock while the savings made during some time period represent the flow variables.
