Explain the Stock and Flow
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Explanation of Economic Concepts
a. Stock and Flow
Stock: A stock is a quantity measured at a particular point in time. It represents a static value and does not involve a time dimension. Examples include the amount of money in a bank account at a specific date, the capital stock of a company, or the population of a country at a certain moment.
Flow: A flow is a quantity measured per unit of time. It involves a dynamic process and is about changes over time. Examples include income earned per month, goods produced per year, or the number of people immigrating to a country annually.