What is difference between stock and flows
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Explanation:
A stock is measured at one specific time, and represents a quantity existing at that point in time (say, october19, 2020), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore, a flow would be measured per unit of time (say a year).
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Stock
Meaning: Any economic variable which is calculated at a period of time.
Nature: Static concept
Time Dimension: Time Dimension is absent.
Example: Wealth, Foreign Assets
Flow
Meaning: Any economic variable which is calculated during a period of time.
Nature: Dynamic concept
Time Dimension: Time Dimension is present.
Example: Gross Domestic Product, Investment
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