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question can someone explain to me what FLOW is and what Stock is in terms of macroeconomics?
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A stock variable is something which tends to be fixed and they generally accumulate or deplete. example is Capital which include all investments,fixed assets etc.. They are measured at one specific point. A flow is somethings that that changes hands or changes after an interval of time. US $ spend every year is an example.
flow is deficits stock is debt. think of stock being the sum total of flows... if you spend $1 each day M-F, your stock is -$5 on Sat morning, and the flow of your value is -$1/day.
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