question_answer

Distinguish between stocks and flow. Give an example of each.

Answer:

	Stock		Flow
(1)	Stock refers to the value of a variable at a point of time.	(1)	Flow refers to the value of a variable during a period of time.
(2)	It is measured at a specific point of time.	(2)	It is measured per hour, per month or per year.
(3)	Stock impact the flow. Greater the stock of capital greater is flow of goods and services.	(3)	Flow impact the stock, greater the flow of income greater is the stock of people
(4)	Example: Capital and quantity of money.	(4)	Example: Export and imports